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Problems with FIAT money, not backed by gold.

Let me get this straight. Money has always baffled me. Our currency is called fiat money. Fiat money is regulated by the government through the Federal Reserve. Fiat money has nothing to back it but debt.

Our money used to be backed by gold and silver. That changed with Nixon aka the Nixon Shock, back in 1971. This enabled the fed to print money, and lend it with interest to smaller banks. Thus stimulating “growth,” and making money for the Federal Reserve (remember, the Federal Reserve is a private, for profit bank, and is NOT part of our government. They just control our money in secrecy).

But wait a minute? How do you print money you do not have, and then lend it with interest and make money from nothing? How does that make an economy grow? It doesn’t! It’s a house of cards, ready to collapse on itself. This craziness has lead to the worst recession in our history. It is worse than the media reports. The real unemployment rate is closer to 22 percent. Our homes have lost value, our towns are bankrupt, and more and more people are joining the unemployed.

 Why? Because you CANNOT just print money! Debt = money in our current system! Our grandparents did not buy things with credit cards they way we do today. Why? Money was still backed by something real, gold! People were more conservative, and lived within their means. Today, it’s buy now pay later, that is bad! Credit consumer debt is money in the bank. It’s CRAZY! check out Iceland. We must change this system for the sake of our children.

By Jennifer Shafer Wood, Patch Poster  | Updated 

1 Comment

  1. Even though the original post is from 2012, it’s still relevant today.


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