The Latin term “fiat” roughly translates to “there shall be”. When we refer to fiat money, we are referring to money that exists because the government declares it into existence. It is not based on production or earnings, and not backed by any commodity. It is solely based on trusting the government. Fiat money is exchanged in the economy as long as there is faith in the government that issues it.
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How can faith be relied on to be correct? Being relied on is tough. But having one's faith confirmed is as easy as going to churchie pep rally ……… then nod and grin with the others until you are full of it ………. full of your confidence in what ever particular snake oil they are selling.