Mickey Mouse Money: petrodollars, FIAT money and gold reserves explained in 15 minutes

04JUL23

One of the most accessible daily financial bloggers - London-based Mario Innecco - gives a heads up on the fragile state of global finance. When he goes on about stacking, he is talking about gold and silver "real money".

Mario has been talking about this for a long time now, and is very matter of fact when discussing the imminent end of "money as we know it" - FIAT currencies. Most people are unlikely to be quite so sanguine, so strap in for a rough ride.

Curiously, there is no acronym offered for FIAT in eh currecny contect, Plenty of amusing motoring ideas:~ Feeble Italian Attempt at Transportation

But let's have our NBF Google BARD, give us the skinny|:

"The term "fiat" currency comes from the Latin word "fiat," which means "let it be done." In the context of currency, a fiat currency is one that is not backed by a physical commodity, such as gold or silver. Instead, its value is based on the government's decree that it is legal tender.

The term "fiat" currency was first used in the 1870s by the United States Greenback Party, which opposed the withdrawal of United States Notes from circulation. The party argued that these notes, which were a form of paper fiat currency, should be allowed to remain in circulation because they were backed by the full faith and credit of the United States government.

Today, most of the world's currencies are fiat currencies. This is because fiat currencies offer a number of advantages over commodity-backed currencies. For example, fiat currencies are more flexible and can be more easily controlled by the government. They are also less susceptible to fluctuations in the price of commodities.

The term "fiat" currency is sometimes used to refer to cryptocurrencies, such as Bitcoin. However, cryptocurrencies are not technically fiat currencies because they are not issued by a government. Instead, they are created and managed by a decentralized network of computers.

Despite this, some people argue that cryptocurrencies are still a form of fiat currency because their value is ultimately based on the belief that others will accept them in exchange for goods and services. In other words, the value of a cryptocurrency is based on the fiat of the market.

Ultimately, the term "fiat" currency is a matter of definition. However, it is clear that the term is derived from the Latin word "fiat," which means "let it be done." This reflects the fact that fiat currencies are not backed by a physical commodity, and their value is based on the government's decree that they are legal tender."

So like we said, it's basically "Mickey Mouse Money".