FIAT CURRENCY

In economics, fiat currency or fiat money is money backed by government demand for it as legal tender in payment of legal liabilities, such as taxes.

It is often associated with paper money because legal liabilities are created and settled by documents which are usually paper. Without government demand for certain kinds of paper as legal tender, such as bank notes, only specie is unlimited legal tender. However this is not universally true, as some currencies, (notably sterling issued by Scottish banks), are not legal tender but are accepted by longstanding confidence.

A bank of issue whose notes enjoy legal tender status by government fiat can use its own notes, making their redemption in specie optional — a matter of the 'monetary policy' of the bank in question. Historically, the institution of fiat currency has preceded and enabled the demonetisation of specie, via a monetary policy decision not to offer payment in specie at par, e.g. by suspension, devaluation or redemption in bullion or foreign currency instead. Eventually this leads to no form of payment, redemption or exchange whatsoever being offered by the issuer and a system of irredeemable freely floating national currencies.

Thomas Jefferson is reputed to have said that, “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

Jefferson did not need a crystal ball to see the rise of The Federal Reserve, a private bank which controls the United States’ Money. Jefferson was well aware of the international banksters even in his time. The inevitability of small groups of elite, well-heeled people to group together and prey on their fellow man is not exactly a new thing either.

Black’s Law Dictionary [Sixth Edition, 1991] defines “fiat” as an “A command or order to act. Arbitrary or authoritative order or decision.” “Fiat money” is likewise defined as, “inconvertible paper money made legal tender by a government decree.” Inconvertible to, for example, gold or silver. Made legal only by government decree. “Colored money”, i.e. money with the “deceptive appearance, assumed exterior, concealing a lack of reality.”

Federal Reserve Notes (FRNs) are colored money. They have no value, except by virtue of a government decree -- a decree arrived at under conditions of duress, and thus in all probability invalid. Just as The Decree of Franklin Roosevelt in recalling gold from the hands of the citizenry was under the direction of the international Banksters, the use of FRN’s is a continuation of this directive. This in turn is linked to the US Bankruptcy, the questionable use of Executive Orders, and what has become to be a Crisis in American Government -- including Social InSecurity and the Internal Revenue Service.

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Prudent investors will take heed of the above and accumulate physical Precious Metals.

We at KASTLE & HAWKE, stand by to assist you.

The best 'time' to do so is BEFORE any crisis. We hope you agree. The concept of 'buy-low', 'sell-high' only works IF you act before the Herd Mentality sets in.

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