Fiat is probably… I dunno… probably my number 1 most hated system in all the world. The world does some pretty dumb shit. Privatisation of transport and prisons, removing and putting in weird laws, peer-pressure, etc. We do dumb shit, saying that I think fiat was the worst is a pretty high thing to say for me. Just reeks of absolute stupidity that we fell for it I guess. I understand it was designed though of course, corruption breeds in every corner.
Designing an IOU based system, based on debt, without any backing, which lowers its worth over each generation until some generations (boomers) are exalted due to getting into the system when it was still in youthfulness and ripe for exploitation, and my generation (y) are getting our entire generation’s external life destroyed is just erroneous to future generations welfare. In some countries, like Australia, we can’t even fucking buy a house or afford to move out of home. Buying a house in Australia has been the cultural norm for generations and none of my generation can afford it. Housing probably a strange example, as its caused by the housing bubble (discussion), but it’s a good overall descriptor of how fiat depreciation can reduce the quality of living socioeconomically by lowering the purchasing power of the currency.
It’s short sighted, and appalling. The ‘secret tax upon the people’, that goes on forever, that one dollar in your pocket will never retain that worth… some argue that by definition fiat isn’t actually currency. As it by definition depreciates in value in a locked in assurance so therefore cannot be a store of value technically. It is always going to be less to generations existing after your own. Paper money is not a fucking apple, it doesn’t rot and a store of wealth/currency should not be built-in to rot from the inside. A traditional determiner is it’s usefulness to others, it should natively be determined by its holders as to its worth. Like any damn store of wealth, not a predicted fucking loss.
What the IMF and the World Bank have done all over the world to decimate local cultures of countries through imposing new laws which benefit them and global corporations and… *closes eyes and breathes*… has done a disservice to calling us an ‘intelligent species’. I was so surprised in one of my sociology textbooks, that they agreed with my disposition on it. Nearly spat out my soul in shock that academic literature agreed, in a field other than some parts of the economics field itself. They even erred on the side of stating that America was an economic imperialistic empire; the observance of the human race I suddenly deemed better than a goldfish.
The only reason its still in, fiat, is because of the media blackout and separatist language which goes alongside the lack of general understanding of economics. Ie, most of society has no fucking idea how it works. Though that is slowly changing, and hence the rise of crypto.
I understand wealth distribution (Pareto) as described by Peterson. Probably something to do with Price’s Law in some sense. I am not arguing that poor shouldn’t be poor, or rich shouldn’t be rich. I’m arguing that stealing from the poor through a secret tax that takes away their purchasing power is the number 1 way to crush your society through involuntary revolution and making robin hoods. Anonymous exists for a reason.