Our fiat money system usd eur and many other western nations money is not backed by gold neither oil much but its backed by crisis the "crisis are new gold and oil in our financial system"
It started off course with covid 19
Until there is crisis until then we see prosperity and economic growth.
The crisis only forced the use of extreme monetary tools like QE, but the value of fiat remained based on trust and mandatory revenues through the fiscal system. Therefore, it wasn't supported by the crisis, but by the country's capacity to generate demand for its currency (national economic productivity, tax collection capacity, central bank credibility, domestic financial market liquidity, and the geopolitical power behind it).
What triggered the post-crisis recovery was government or central bank stimulus, while the crisis itself damaged the economy. What was seen was the illusion of a rebound because the base had collapsed.
If the crisis were the new gold, then the monetary system would become dependent on the crisis, not a healthy foundation for fiat. This reflects reactive monetary policy, not the fundamental character of fiat money itself.
COVID accelerated a pattern that had existed since 1971, not the beginning of the system. After Bretton Woods, fiat operated through inflation management, banking stability, and fiscal-monetary coordination. Therefore, COVID merely accelerated financialization and dependence on stimulus, not creating a new paradigm that crisis backs value.
Real prosperity doesn't emerge from crises, but from productivity, a strong workforce, and a healthy distribution of capital without extreme inequality. What should be real in the economy is structural growth, not spurious growth driven by liquidity injections.
I've been wanting to discuss about this topic for a while now and I am grateful that someone brings it up today, but you still don't explain how a country benefits from crisis.
I will wait for other people's opinion about this topic first, all I know presently is that war somehow brings benefits to those who made it happen and even in the past histories this have been the same, I just can't figure out how yet.
In my country there is unrest from attackers, people are been killed almost everyday and many are blaming it in on the jihadists/Muslims because the most affected victims are Christians, I later heard that this affected areas are filled with precious stones in the ground.
They plan to bring the unrest to people living in these few states so that they can leave or die in the process and the precious stones will be harvested later.
The state doesn't actually gain economic benefits from the crisis; it's the small group with access to power and capital that benefits. The crisis simply creates conditions in which the rule of law weakens, communities lose bargaining power, and assets can be seized or bought cheaply. This includes local conflicts, often not about religion, but about the struggle for resources. The conflict is given a religious narrative to appear natural, when in reality, the motives are economic and power-driven. So, it's true that some parties benefit, but it's not the state, but rather the elites exploiting the crisis.
You little out of topic, my point was that our fiat money system cant survive without crisis.
Crisis means forced situation to take more debt countries wich trade defecite are balanced and healthy can deal with inflation and fiscal problems better.
But dollar is not oil currency anymore large part of oil deals happening with brics nation currencies allready so whats left for dollars and euros are crisis another thing is green energy exports if europe could start this but not any time soon.
Whats left is something what can be used to circle money around and lower rates to sustain economy is crisis so another way to say fiat money is backed by CRISIS what are crisis ? _ all the wars health and envoirement crisis dont forget that fear of climate and envoiremental situation is also kind of crisis.
In crisis goverments will borrow more money and keep the econony alive to make sure inflation not going to high and money dont lose its value they make higher taxes and pump markets to make commodities and raw materials a lot more expensive.
Rich ones dont sell all their btc or gold they borrow against btc and gold to keep those assets to go up in value and borrowing even more against crypto btc and gold it will bring more and more money into system, its good for those who benefit of this by holding btc and gold.
What are the gold and btc ? Its a hedge against crisis we not going to see any bigger crash any time soon but more crisis will come locally and globally to pump even higher the gold and btc.
Off course when bubble will pop it will be huge DEFLATION it will be not blamed on whales or big short sellers but off course covid wars cyber attacks kind of events.
Until there will be stablecoins leading by usdc circle fully ready to reset the system there would be full crisis mode to keep markets bullish and fake economy booming.
Are there another way ? No there isnt !
By time frame it could be about 2028 by this time they got stablecoins ready so we got 2 years to pump and sell gold btc to get stablecoins so trump and his team will make new stablecoins standard economy in latin america they allready tested this with stablecoins they funded their political leaders there off course before 2028 those leaders not needed anymore they was only needed to be used.
All this works because of ignorance of people because people generally dont care about justice or morals the general attitude are now days this. Until someone dont lose home job or compfort standard of living person dont think about global problems much and dont even want to know how system works but crisis touching your life for real then its too late to start thinking anf educating yourself suddenly when something happens people start to be interested about all more deeper.
Ignorance and dont care attitude is key how this system works and our elite nobility the bankers are nothing more then our teachers to teach us bad way to wake up.
In fact that we live in society of big ignorance shows that if something bad happens many people dont think about to help but they care more about making first some tiktok video for example car accidents we live in society where instead of helping people will start first making videos and pictueres to share on social media.
You seem to be mistaken in your conclusion: the fiat system's dependence on crises is not the foundation, but rather a symptom of government failure in fiscal-monetary management.
The financial elite who manage fiat depend on crises because they have an excuse to print money, lower interest rates, expand public debt, and pump up asset markets. What creates this dependence on crises is the financialization of the economy, the dominance of 3% of asset owners, and a central bank incentive structure that prioritizes capital market rescue. What needs crises is the top of the pyramid system that thrives on volatility and stimulus.
The dollar's underpinnings are US tax power (federal taxes automatically create demand for USD), the dominance and depth of US financial markets, where the Treasury market is the most liquid market in the world, and geopolitical and military influence (800+ military bases are instruments that maintain the USD's superiority). Therefore, the petrodollar is not the foundation.
Crises are triggers for intervention, not fuel for the economy, and crises are not new commodities. Distrust in monetary policy, falling real interest rates, and QE-fueled asset inflation (which drives up the price of gold and bitcoin) prove that the fiat structure is manipulated to protect asset owners, not the public. Gold and Bitcoin are a way out of an unequal system.
Financial elites are indeed adept at exploiting crises and using central banks as a hedge, but they can't always control when and how crises occur.
Do you believe USDC and stablecoins can unilaterally reset the global system? Because stablecoins cannot replace the USD unless the US changes the legal framework, the banking system overhauls its business model, and central banks agree to full integration. In fact, stablecoins are not recognized as legal tender, are not a means of storing bank reserves, and are vulnerable to regulatory shutdowns.
My Conclusion
Crises are not the foundation of fiat; they are symptoms of flawed policies and an unequal economic structure.
The dollar didn't lose value because oil stopped trading in USD; its value is supported by fiscal trust, US financial markets, and its geopolitical power.
Gold and Bitcoin are indeed hedges, but they are hedges against policy manipulation, not hedges because crises set new standards for the monetary system.
https://en.wikipedia.org/wiki/Fiat_money
