Saturday, 18 February 2006 - 10:33 PM CST
I know you ain't askin' me, but fiat currency is money that is not backed by any reserve of value. Back in the day when there were state and colonial banks, the value of the money was tied to precious metals or even land. Dollars used to be termed also as silver certificates or some such. I think it was in the 1920's when they did away with that and we just printed pieces of paper. (you should read P.J. O'Rourke's "Eat the Rich")
Fiat money is like the ruble or the cuban peso. It's stated value is supposed to be what the government says it is, but the market has other ideas. I guess. The american dollar is being devalued as countries begin to lose faith in its value and stop holding it in reserve. As they release more dollars and start taking in Euros and as oil begins to be priced in euros or yuan, the dollar begins to lose more ground. The deficit is something like 2 trillion dollars or something. Take that figure and divide by, say 300 million (the amount of americans) you still have each one of us owing a whole ass load of money.
Their faith in our ability to sustain the payments on the debt begins to take a nosedive and so does our money. We were in Germany in March of last year and our money is not worth much.
Welcome to Dorkistan or lower Booty, our new Banana republic with fuckkin monopoly money and a big ass debt and trade imbalance. Would you like to buy a bracelet, mr chinese tourist man? Would you like to meet my seeester?