Fiat money is inherently flawed from "summary" of The Fiat Standard by Saifedean Ammous
The fundamental flaw of fiat money lies in its lack of scarcity. When a money supply can be expanded at will by a central authority, its value is inevitably eroded over time. This is in stark contrast to the properties of sound money, such as gold, which has a limited supply that cannot be manipulated by any single entity. The ability to create money out of thin air may seem like a convenient tool for policymakers to stimulate economic growth or fund government spending. However, this power comes at a cost. By increasing the money supply, central banks effectively dilute the purchasing power of existing currency units, leading to inflation. This hidden tax on savers and wage earners is a pernicious form of wealth redistribution that disproportionately affects those least able to protect themse...
Similar Posts
A disciplina financeira permite o crescimento econômico
The discipline of finance is like the roots of a tree. Just as the roots provide stability and nourishment for the tree to grow...
Speculation plays a role in market fluctuations
Speculation can have a significant impact on market fluctuations. When people anticipate future prices, they may buy or sell as...
Stay agile and adaptable in the everchanging financial landscape
In today's fast-paced world, the financial landscape is constantly shifting and evolving. What worked yesterday may not work to...
Law of attraction brings wealth to those who believe
The law of attraction is an inexorable principle that operates in the universe. It is like the law of gravitation, which is alw...
Government must step in during crises
During times of crises, the private sector is unable to effectively allocate resources and generate sufficient demand to mainta...
Speculators can impact currency fluctuations
Speculators play a significant role in the foreign exchange market as they buy and sell currencies with the expectation of maki...
Economic indicators provide insights into the state of the economy
Economic indicators are key tools used by policymakers, economists, investors, and businesses to gain a better understanding of...
Censorshipresistant payment system
In the world of digital currencies, a censorship-resistant payment system is the holy grail. Simply put, it is a system that ca...
Sound money promotes economic efficiency
Sound money, by its very nature, is money that holds its value over time. It is money that cannot be easily manipulated or deba...