Fiat Currency

Posted by on Feb 22, 2009 in Economics, Vocabulary List | No Comments

Fiat Currency: Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith (faith in a corrupt government and corrupt corporate bankersters).