Summary

The article argues that fiat money, as a manipulable and unlimited resource controlled by banks and governments, has led to a system of monetary slavery, encouraging societal ignorance and high time preference, which may ultimately lead to societal collapse.

Abstract

The opinion piece titled "The Reason Why Fiat Money Has Made Us Slaves" delves into the inherent flaws of the current monetary system based on fiat money. It suggests that this system, which allows for the unchecked printing of currency by banks and governments, operates on the collective belief of the populace rather than on any tangible asset like gold. The author posits that this soft money, due to its unlimited supply, undermines the incentive to save and invest, thereby increasing society's time preference and potentially leading to societal decay. The article contrasts fiat money with hard money, such as gold, which has a fixed quantity and retains value over time. The transition from the gold standard to fiat currency is seen as a shift towards a trust-based system that is susceptible to manipulation and fear-mongering. The author calls for a reevaluation of our monetary system, questioning the legitimacy of fiat money and advocating for a return to harder forms of currency that are not subject to the whims of political entities.

Opinions

The monetary system is intentionally designed to keep the masses ignorant, working, and powerless.
Fiat money, or soft money, is flawed because its supply can be increased, leading to value depreciation and societal issues.
Hard money, like gold, is preferable as it maintains value across time, unlike fiat money which loses value and contributes to high time preference.
The end of the gold standard and the shift to fiat money have allowed politicians to operate with high time preferences for short-term gains.
The current fiat currency system is described as a deception, backed by manipulation, propaganda, fear, and ignorance rather than tangible assets.
There is a growing movement questioning the financial system and seeking more humane and trustworthy monetary alternatives.
The author suggests that our real currency should be something of intrinsic value, where we truly own what we earn, rather than fiat money, which is backed by misguided trust.

OPINION

The Reason Why Fiat Money Has Made Us Slaves

It’s time to face the deception and question

I never really understood money that well. Like the mass, I went on with my life. But deep down I sensed that none of this actually makes sense — the monetary system, the rich getting richer, and people believing that making more money was the answer.

Now, I am beginning to understand how the entire system has been intentionally designed and applied to keep the mass ignorant, working, and powerless.

The monetary system, as it operates now, has been one of the most effective tools of manipulation and slavery. It has worked so well and continues to do so.

Fortunately, with the decentralization of information and the persistent efforts of some revolutionaries, we are now beginning to wake up. At least I am.

Fiat Money Is Soft Money, and That’s the Problem

Fiat money works because we believe in it. But the banks and the governments print them as they want. This type of money, also known as soft money is not fixed. They can be made.

Hard money, on the other hand, is the type that cannot be printed or just created per the wish of any government, bank, or entity, ex: gold. It is fixed in quantity.

Therein lies the flaw of soft money. Anything used as a store of value that can have its supply increased will have its supply increased, as producers seek to steal the value stored within the soft monetary units and store it in a harder form of money.

When the money supply is increased, the interest rate lowers which then diminishes the incentive to save and invest. This is how soft money disincentivizes a favorable orientation towards the future.

In other words, soft money systems raise society’s time preference. For this reason, soft money, once it is sufficiently debased, tends to precede societal collapse, in the words of Robert Breedlove.

When the gold standard was forcibly ended by governments, money not only became much softer, but it also fell under the command of politicians who are incentivized to operate with high time preferences as they strive for reelection every few years.

Hard money is always preferable to soft money because it holds value across time. Soft money loses value. This causes people to naturally gravitate to the hardest form of money available to them.

We Are Living in a Deception

Again, as I stated earlier, the currency we use today, fiat money, works because we all believe in it. So banks and governments print them as they want to their benefit. Why should we trade our labor for paper notes or any digital currency that inflates over time?

Once gold, a limited and scarce resource, was replaced by IOU notes, fiat money, the entire system started functioning on trust. Since then, that trust has been held together through manipulation, propaganda, fear, and ignorance. The fiat money is backed by nothing. There is no gold standard, no standard at all. Just manipulation and fear.

Could fiat money be one of the greatest deceptions and lie in human history?

We Must Question First To Find the Answer

We are now at a time when we are questioning and doubting the financial system. We are demanding more humane alternatives.

We have become the consumers and laborers for the banks, governments, and those who control them. Our life runs on fiat money, which is backed by nothing intrinsic but our misguided trust.

It is time to question: What is our real currency? How can we really own the money we earn?