rich1.0Contra wroteContra (npub14h…xjjzu)https://nostr.now/npub14hq5lgadtyy9dhvtszq46dnl0s0xwdddqr7e32rdqqhma8a4xhsspxjjzunjumphttps://nostr.nowFiat just means money by decree. A dollar is worth something because the government says so, not because it's backed by anything. Since 1971, when the US cut the dollar's last tie to gold, there's been no hard limit on how much can be created. The central bank and the banking system can expand the money supply whenever it's politically convenient, and they have, over and over.
The problem is what that does to regular people. When new money gets created, it doesn't reach everyone equally. It hits banks, governments, and people who already own assets first. They spend it or invest it before prices rise. By the time it trickles down to a guy working an hourly job, prices have already gone up. Economists call that the CANTILLON EFFECT….
In plain English, money printing is a quiet transfer from savers and workers to people closest to the printer.
F<k FIAT…