We Await the Dawn

It has been a long night and hats off to those who could sleep. The Tsunami was due to hit our small little isle in the early hours of the morning.

It was dark last night as an electrical storm blow in just as the sun was setting. Flashes of light were the only interruption to the impenetrable darkness. What ever the sound of a tidal wave forcing its way in to our island home, could not be heard with strained ear. Truly Lucifer had opened up the gates of hell himself last night if only to gloat over the spectacle of its awe-inspiring supremacy.

Like the many soldiers over many battlefields, we await the dawn.

Money is like our own army, battling it out to determine the value of exchange.

For most people, the battles are done with Fiat Money.

Fiat Money;  is money that has value only because of government regulation or law. The term derives from the Latin fiat, meaning "let it be done", as such money is established by government decree. Where fiat money is used as currency, the term fiat currency is used.

That is where the phrase Legal Tender comes from; you are required by law to accept it in the tendering of an exchange.

Today, all national currencies are fiat currencies, including the US dollar, the euro, and all other reserve currencies. As we know, this trend began with the Nixon Shock of 1971, which ended the backing by precious metal of the U.S. dollar.

That is the grand experiment. For the first time in history, we have a world reserve fiat currency.

The $US, the world reserve currency, is not backed by anything, well actually it is backed by the “full faith and credit of the United States”.

And unfortunately, there in lies the problem……

It is sad to say but how much faith do we have in the US financial system and how much credit to they have?

For example, in his first 3 years in office, Obama has increase the US debt more than the last 43 presidents combined.