Thursday, May 20, 2010
Fiat Currency FAIL
The fate of every fiat currency is the same. The government in charge prints to much, usually to cover its own debts, and the money becomes worthless.
Fiat currency, like the US dollar, is not pegged to the value of any hard commodity like gold. Instead, the value comes from faith that the money is worth something. Eventually, governments abuse their ability to print money, and people lose faith, and no one will take your funny money anymore.
[via nick]
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