What is Fiat Currency?

Right now, the U.S. uses fiat currency, which means it’s not backed by any commodity such as gold or silver.  It derives its value by being declared by the government to be legal tender.  That is, it must be accepted as a form of payment within the boundaries of the country for all debts, public and private.  Our money is referred to as fiat money.

In addition to the U.S. dollar, the euro and all other reserve currencies are fiat currencies.  This trend began with the Nixon Shock of 1971 which ended the backing by precious metal of the U.S. dollar.

Here is an entertaining explanation from a Canadian’s point of view.  Yes; they have fiat currency too.

What Is The Constitutional Tender Act?

The U.S. economy is having big problems.  This is not news!  But some legislators in Georgia think they have a solution to the problem.  While it would only impact their State, their hope is that if the bill passes they will set a good example for other states as well as the Federal Government.

The Constitutional Tender Act is Georgia House Bill (HB) 430.  It was introduced by Representative Bobby Franklin (R-43) in 2009.   He points out that the United States Constitution declares (Article I, Section 10) that “No State shall…make any thing but gold and silver coin a tender in payment of debts.”  However this is no longer the case.  

Click here to finish this article.

 Subscribe to our free RSS Feed!

Not sure what an RSS feed is? Read this article!


     

          FACEBOOK | TWITTER


       



• Recent Posts

  • The Story of the Taylor-Burton Diamond
  • The Spirit of de Grisogono is the Largest Black Diamond in the World
  • Surprising Facts about the Great Star of Africa Diamond
  • The Real Story about the Hope Diamond: A Brief History
  • What is Youngevity?
  • Dead Doctors Don’t Lie is a Book, Tape, and Radio Show
  • Which mineral can change hair from grey to its natural color?
  • What are colloidal minerals?
  • Rare Earth Minerals Can Keep You Healthy
  • What is Fiat Currency?
  • How Does Aqua Regia Refine Gold?
  • A Brief Overview of the Dodd-Frank Wall Street Reform and Consumer Protection Act
  • Does the Dodd-Frank Act Make OTC Gold and Silver Trading Illegal?
  • Ding Dong, the 2012 Gold Tax is Dead
  • Why Diamonds are Still a Good Investment in 2011
  • Why Silver is a Great Investment in 2011
  • China Prepares Gold-Based ETF to Compete with U.S.-Based GLD Fund
  • The Truth about Utah’s New Gold and Silver Currency Law
  • 100-Ounce Gold Nugget to be Auctioned March 2011
  • Which Countries Have the Most Gold?
  • Did You Know You Can Roll Your IRA into a Gold-Backed IRA?
  • How the India Wedding Season Affects Gold Prices
  • “Light” Performance of Diamonds
  • What Does the SHAPE of the Diamond Mean?
  • Clarity of a Diamond is Important

The charts below are updated frequently. Refresh your screen every 10-12 minutes to see the current gold and platinum prices.







• Contact Sam Today!

  Gemologist Sam makes house calls or you can meet with him at his office. Either way, it's by appointment only!
  
  Call Sam at 727-804-7463.
  
  E-mail him at Sam@GemologistSam.com.
  
  His office is located at: 5510 River Road, Suite #211; New Port Richey, FL 34652.
  
  
  

• Categories

  • Coins
  • Diamonds
  • Gemstones
  • Gold
  • minerals
  • Nutrition
  • Pearls
  • Silver
  • Technology
  • The Economy
  • Treasure Hunting

• Testimonials

  Read testimonials, ask questions, and rave about Gemologist Sam on his Feedback page!