Thursday, September 12, 2013

Fiat Currencies Always Fail

99.9% of the world’s population is unaware that we no longer use money… we use “fiat” national currencies. What is a fiat currency? Fiat currencies are faith based. They are national currencies that are not backed by anything of value like gold, instead the government just declares that they have value and, as long as the people keep believing, they accept it… for a while. But here’s the thing, there have been thousands upon thousands of fiat currencies throughout history, and they have all failed… 100%... no exceptions.

But there is a vast difference this time around. Since 1971, for the very first time in history, all of the world’s currencies are fiat currencies simultaneously.

- Source, Mike Maloney via Gold