We live in a world of fiat money — government-issued currency unbacked by any physical commodity such as gold or silver.

So, what is fiat backed by?

“The full faith and credit” of the issuing government.

In other words – nothing.

Fiat systems allow governments to expand the money supply without restraint. They facilitate borrowing and spending. And they are the engine that drives big government.

Fiat money is great for government, but not so great for the people living under its thumb. As government expands the money supply to support its growth, they steal the people’s purchasing power.

It wasn’t always this way. Gold and silver evolved as money early in human history through market forces, and they are still money today. In fact, they are sound money that cannot be printed by governments.

The following videos answer some frequently asked questions relating to sound money, gold and silver investing, monetary policy, and the economics of money.

 

What Is Quantitative Easing?

What Is the Difference Between an ETF and Physical Gold or Silver?

What Is Inflation?