103.2 Lesson - whyCareAboutFiatMoney

Screen: whyCareAboutFiatMoney

Headline: I trust my government. Why should I care about fiat money?

Reward: 2

Text: As shared in a prior quiz, the US Central Bank is the Federal Reserve, or the “Fed”.

The Fed can print more dollars at any time -- and does not need permission from the President, nor Congress, and certainly not from US citizens.

Having control of money can be very tempting for authorities to abuse -- and often time leads to massive inflation, arbitrary confiscation and corruption.

In fact, Alan Greenspan, the famous former chairman of The Fed, famously said the US “can pay any debt that it has, because we can always print more to do that”.

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QUIZ

Question: Why should I care about the government controlling fiat money?

Answer: All fiat currency is eventually abused by government authorities.

Feedback: Correct. Throughout history, governments have been unable to resist the ability to print money, as they effectively have no obligation to repay this money.

Correct: true

Answer: Local banks might not have enough vault space to hold all of the dollar bills.

Feedback: Nope, that is certainly not the case.

Correct: false

Answer: There might not be enough trees to make paper for all of the additional dollar bills.

Feedback: Wrong. Please try again.

Correct: false