/biz/ - Business & Finance

>>144632
>but it ends up becoming sort of like a barter system.
that's exactly what fiat is. idk if you're a fellow americlap or if you're bongistanian, but check out related pic. forgive the crappiness, i don't own a good camera.

paper money was an IOU for real constitutional money - gold and silver. that's how paper money came to be - iou's for precious metals, which unfortunately led to fractional reserve banking and the rise of the rothschild banking cartel. the 1934 $5 bill i have says FIVE DOLLARS IN SILVER PAYABLE TO THE BEARER ON DEMAND. the actual dollars were the silver, the paper was just a convenient means to carry and redeem. it also says that it certifies that the silver is there on deposit. real stuff was there, it was not fiat. fiat is backed by nothing but faith.

the 1950 $20 bill says WILL PAY TO THE BEARER ON DEMAND TWENTY DOLLARS. again, it's an IOU. it's a NOTE. a federal reserve note.

today it's just pure NOTEs, backed by nothing really, operating on faith. it might seem convoluted and nonsensical, because it is. there are legal definitions for money, legal tender, notes, and all that. it's a lot to get into and it's crazy.