The Gold Standard Vs Fiat Currency
How Runaway Beliefs Can Bankrupt Our Lives
Defining the terms:
Fiat money system is a currency backed by a Government’s decree and reputation. The Government simply states, “our money has value.“
A Gold standard currency is backed, dollar for dollar, by actual tangible, stored in a vault, GOLD.
The US dollar is the one most quoted when discussing the famous shift of currency from the gold standard to the fiat system. The story climaxed in 1971 under President Nixon’s term when his team took the US dollar off the gold standard. They were worried about inflation and a run of sovereign nations trading in their surplus US Dollars for the gold stored in the USA.
In simple terms when the US dollar was backed by Gold Standard there was an implicit tangible value, based on the actual GOLD reserve. When the US dollar became untrustworthy, due to imbalanced trade, nations started cashing their US Dollars for US GOLD. On August 15, 1971 Nixon ordered that nations could no longer exchange their dollars for GOLD. This was the day that fiat currency was invented. Literally printing more money now decreased the value of money.
Our own lives at a micro level can resemble a sovereign nation’s currency. If we are aligned, solid and trustworthy in our beliefs and thinking, our personal currency could be viewed as being foundationally secure on a GOLD STANDARD, based on a tangible, defendable stored value.
And then there is the “glorious” freedom of the fiat system. Beliefs, thoughts and lives are simply made up, almost like printing money. All problems can be “solved” by simply printing new beliefs. After all, I decree that my thoughts are money and so they are. The stored value is based on the statement, “I say they are of value and so they are.”
The question I have for all of us.
What % of current beliefs and thoughts are based on:
The Gold Standard … thoughts backed by GOLD.
The Fiat Standard… thoughts backed by…?
P.S. Don’t forget, People Can Change and The Power of Success is in TEAM