The main reasons why I think it is able to exist are 1) most people are too ignorant to realize the consequences 2) some people believe creating money out of thin air “creates” wealth 3) the incredibly fallacious nonsense that the Fed/Central Banks “manage” the economy by using fiat currecy 4) to those who understand how terrible fiat money is, they are forced by violence to use it.
Not only can they make you pay your taxes in USD, but their real power lies in the fact that all US businesses are required to accept USD as payment of debt
Only one reason: everyone is forced by the government to accept it. And yes it is falling apart from its own illogic, the only thing you have to add to this… the process is slow, so it is hard to detect in the first place, but it is an ongoing process with a definitive end.
Fiat money doesn’t work. It seems to work. It seems to work for those who are enmeshed in the “monoply” board game and adhere to its rules.
For the outside observer, not party to the central bankers and governments which foist this Ponzy scheme upon loyal but disinterested citizens,
husbanded animals producing wealth measured with the yardstick of tribute and consumer debt, it seems to work. As with all money backing schemes it
suffers from finitude. There are only so many sould upon whose backs the breakers of humanity can place the debt required of debt based currency.
That finitude is as fragile as the finitude of metallic backed currency and coin clipping money changers of historic record. Fiat money is rife with moral
moral hazard instituted by those who seek to convince the gullible public of its legitimacy because of its comonality. The full faith and credit of fiat money is
based upon the willing ignorance of those who trade in it. One day a small child will cry out, “The King is naked” and the scheme will fall apart as knowingly
wise scholars such as Meises has often said over the years. The question is not how much will we lose as traders in this despotic graft of amoral bankers,
but how many quarts of human blood will be required of citizens wanting only parity for time lost holding the wishes of prosperity promised of fiat currency.
John Mahler