Do You Want To Understand The Secrets Behind The Recession?
In a Fiat Money system, money is not backed by a physical commodity (i.e.: gold)
. Instead, the only thing that gives the money value is... its relative scarcity and the faith placed in it by the people that use it.
n a fiat monetary system, there is no restrain on the amount of money that can be created. This allows unlimited credit creation. Initially, a rapid growth in the availability of credit is often mistaken for economic growth, as spending and business profits grow and frequently there is a rapid growth in equity prices. In the long run, however, the economy tends to suffer much more by the following contraction than it gained from the expansion in credit. See the US Housing Market Crash!
In most cases, a fiat monetary system comes into existence as a result of excessive public debt.
When the government is unable to repay all its debt in gold or silver, the temptation to remove physical backing rather than to default becomes irresistible. This was the case in 18th century France during the Law scheme, as well as in the 70s in the US, when Nixon removed the last link between the dollar and gold which is still in effect today.
www.1gramgoldbar.com
by: Norbert Zuendorf
The Scabies 24-Hour Natural Remedy Report By Joe Barton: A Sufferer's Review Canon Fs200 Review - Positives And Negatives Shop Drawings And Submittal Review Process For Building Construction HP Color LaserJet CP6015 Cartridge Review Same Day Money-additional Money To Utilize Within Hours Tees Mar Khan Movie Review Public - Private Investment Program (ppip) Review HTC HD7 With O2: The Perfect Deal To Save Your Money Review Of Playa Del Carmen Hotels Various Ways To Get Out Of Financial Crunch RegenerateMD Review: Regenrate your skin cells now The Two Secrets Of Getting Someone To Spend Money Panic Away Review - Know the Causes of Panic