The Fraudulent and Ruinous Nature of Fiat Monetary Systems

This article examines the ethics and nature of fiat monetary systems. It demonstrates that they are unethical, fraudulent, and have detrimental economic and societal consequences. Existing monetary systems feature a fiat national currency and fractional reserve commercial banking. Fiat currencies are an unsound form of money with an unlimited supply typically issued by a government. Fiat monetary systems involve artificially expanding the money and credit supply (monetary inflation) by the central bank and fractional reserve commercial banks. This practice is unethical and fraudulent because it deceives, distorts, defrauds, and destroys. Fiat monetary systems violate the universal moral principles of truth, justice, and nonaggression. They lead to ruinous consequences, such as price inflation, economic distortions, instability, crises, and other issues that undermine economic prosperity and social stability. The article contains four parts: the first outlines the definition of a fiat monetary system; the second discusses ethics and economics as a “value-free” science; the third demonstrates the unethical and ruinous nature of fiat monetary systems; and the fourth looks into the state’s preference for fiat currency systems.