Dollar is fake money but just legalized fake money

[viljy]

So what's new here? This is a well-known fact. It is incorrect to call the issue money only by the term "fake". After all, the emission of money has been unlimited since the abolition of the gold standard by Richard Nixon. All other currencies go into circulation only if their emission is secured by the foreign exchange reserves of central banks (this is the IMF's recommendation for "independent" central banks to "freeze" dollars in reserves), that is, the whole system is essentially dollar-based.

It's just that this system is inflationary from the beginning, so you can't expect any "intrinsic value" from such money, or expect such money to be provided with external value (energy, gold, a king's guarantee, etc.). The money that can really be described as fake is the loan money that is created by commercial banks through fractional reserve banking. This is money that the bank does not have, but it lends this money to you at an interest rate. This counterfeiting is disguised by the name "money multiplier".

[puloweh555]

Whether or not a dollar is considered counterfeit depends on mutual agreement, because that's what gives it value. Without agreement, who would accept counterfeit money? All countries agree to use this paper money as a means of transaction, creating value and there are goods to be gained from fiat exchange. Even after it is no longer backed by gold, they will continue to try to maintain the value of the dollar for the sake of balance.

That's right. For me, money is a form of "mutual trust and agreement." Because money can bridge diverse cultures, ethnicities, religions, and races. This makes it the only trust system with the highest tolerance. While money is essentially just paper it's the trust and agreement that make it valuable. If that trust were to collapse money would be priceless.

This also means we shouldn't put too much trust in money as it could one day collapse rendering it completely worthless. Iran is a prime example of this so investing in gold and Bitcoin is the best option right now.

[lizarder]

What we will see is now euro pound dollar higher rates higher yields and off course higher trading tarifs + more taxes + more all kind of regulations ALL THIS to make illusion to people that money is limited, when in reality there is too much of western nations currencies and all of them want same thing.... that their fake money stays and world will accept their fake money as currency.

I don't see the value of counterfeit money in a country's currency, but rather that these currencies create problems because they can't survive in bad economic conditions. This is what recently happened in Iran where their currency became virtually worthless after experiencing global pressure from the global economic impact of sanctions. The US dollar, euro and pound sterling are still the best compared to other currencies and perhaps the understanding I want to convey isn't the meaning of money itself, but rather its exchange rate compared to other currencies.

Currency will certainly remain for a country's journey, but how that money becomes worthless due to depreciation is perhaps more interesting to discuss so that we have a pattern or strategy to get out of financial pressure if at any time our country experiences problems like Iran or other countries and I think this is much more important to think about so that we don't get into trouble when a situation like this occurs.

[WillyAp]

It's just that this system is inflationary from the beginning, so you can't expect any "intrinsic value" from such money, or expect such money to be provided with external value (energy, gold, a king's guarantee, etc.).

Every system lives on credit.
So do most businesses by the way. China conquers the world by credit.
So yes all systems have inflation as they are based on growth, now with diminishing populations the model runs into issues.
Issues become a problem the moment incapable people run a country.   

[DanWalker]

Dollar, Euro, Dinar, or whatever the bills are called, everything is scam because it doesn't have the intrinsic value of what the number says. Let's say a 100 dollar bill is just worth a few cents but it is believed to have worth of 100 dollar only because the government told the people it has value. This is how the fiat system was built, entirely based on trust and if suddenly one fine day the issuer wake up and say those old bills doesn't have any value then it is useless.

Every financial system in the world today is built and exists based on trust. For centralized system, we would have to trust the government, bank and third parties. Meanwhile, for decentralized system such as Bitcoin. While we do not need to trust the government and banks, we should instead trust algorithms, code, and internet infrastructure

In the end, they are all built and exist based on human belief, and they can all collapse if people lose faith in them.

[Findingnemo]

~
In the end, they are all built and exist based on human belief, and they can all collapse if people lose faith in them.

Bitcoin is irresistible to everything and it can collapse only when miners stop mining those blocks so the bad actors can create blocks, reverse or double spend it but bitcoin became too big for that to happen so it will unlikely to happen in the future too. But everything will come to an end so does the bitcoin but it is not going to happen in the next 100 years.

[Ucy]

Not just dollar, all fiat currencies do not qualify as real monies. Shared assets ought to be fairly and transparently generated, printed, operated and distributed to prevent abuse. But some part owners of the shared assets gain undue advantage over the rest of the members due to the manner the assets are operated
Anyone should be able to search, find and distribute new money via hardwork, in p2p, decentralized manner. And true money should be hard to generate/print and earned, otherwise it keeps losing value

[DrBeer]

The government of several countries came to agreements for them to use fiat as a currency for trade because they can easily print it and manipulate the citizens with it and none of them will be punished for their actions.

Back days, other form of currency couldn't be manipulated because it's rare to see them and there was no much inflation. Humans are not satisfied with what they have, they prefer to take from others by trick. This is the same thing the government is doing with fiat currency that was made by them. The government is the problem not fiat (usd, euro, pounds etc.)

Can you suggest a solution for the MODERN economy that is more convenient than cashless money or fiat paper money? Barter? Silver thalers and gold ducats? What can provide a simple, convenient, and fast method of mutual settlement if not cashless/paper money?
 

Barter? Try going to a store and exchanging, for example, a kilogram of rice, a kilogram of meat, two bottles of milk, for something you produce, let's say shoes?
Gold and silver? Tell me what your wallet would look like if your salary was, say, $3,000? And how would you buy goods, for example, in an online store?
 

[ecnalubma]

...the whole financial and all the things we need to understood dollar is fake money and its legalized fake money... those who can just print dollars will take everything not because they provide some better skills or merits...

What you are describing is essentially the Cantillon Effect. It is the observation that when a central bank prints money (expands the money supply), the people closest to the source of that money the bankers, government contractors, and large corporations benefit first because they get to spend the new money before prices have risen. By the time that money trickles down to the average citizen, the purchasing power has already been diluted by inflation.

[Moreno233]

Your anger with the US should not make you call the dollar fake money, there is nothing fake about the dollar. The US were just politically conscious and militarily prepared to make the dollar global currency and also apportion to themself the right and power to print the dollar at any quantity without limitation. If dollar is fake money, you are invariably saying that other fiat currencies are fake and that is not possible.

[Jateng]

At first, this paper had a definite value, namely as a representation of gold so that it was easier for people to carry, this money was a sign of gold ownership, but since Nixon changed the gold standard, it was easier for countries or governments to print money for financing, and ultimately until today its value is pegged to public trust in this FIAT currency, its value lies in how trustworthy it is, if no one believes it anymore, its value will decline, it is also based on supply and demand, it is not considered fraud because they agree with this currency, even you yourself use it.

Fiat currency is no longer related to gold but everything is linked to the dollar instead of money. the dollar is preferred over money. Despite everyone knowing it most people use the dollar and in fact we are also among them because the dollar has legal status due to which it is being used a lot despite being counterfeit. we can say that paper currency used to provide convenience to people. The dollar is beneficial in investment so it is being given more preference day after day. the law has declared it legal status then there is no harm in it it is being used more.

[abhiseshakana]

At first, this paper had a definite value, namely as a representation of gold so that it was easier for people to carry, this money was a sign of gold ownership, but since Nixon changed the gold standard, it was easier for countries or governments to print money for financing, and ultimately until today its value is pegged to public trust in this FIAT currency, its value lies in how trustworthy it is, if no one believes it anymore, its value will decline, it is also based on supply and demand, it is not considered fraud because they agree with this currency, even you yourself use it.

Fiat currency is no longer related to gold but everything is linked to the dollar instead of money. the dollar is preferred over money. Despite everyone knowing it most people use the dollar and in fact we are also among them because the dollar has legal status due to which it is being used a lot despite being counterfeit. we can say that paper currency used to provide convenience to people. The dollar is beneficial in investment so it is being given more preference day after day. the law has declared it legal status then there is no harm in it it is being used more.

Even USD is not back up by gold and not considering how US set this arrangement during WW-II, but as a matter of fact USD very strong because the institutional big trust on USD. Market believe in its issuer (US Sovereign Credibility) especially on government ability to pay  debt (no sovereign default). They are believe that US has rigid rule of law and independen central bank which mean US regulationwill not change suddenly or arbitrarily. Beside that USD backed up with deepest market and the most liquid market in the world. Based on government guaranty or state authority and stable economic capacity, many institution has strong belive in USD so it has value, we can see when there are crisis, capital will run to USD not run away from USD, it is a proove USD provide secure asset, easy to convert, small risk liquidity and stiill be global valuation.

[philipma1957]

At first, this paper had a definite value, namely as a representation of gold so that it was easier for people to carry, this money was a sign of gold ownership, but since Nixon changed the gold standard, it was easier for countries or governments to print money for financing, and ultimately until today its value is pegged to public trust in this FIAT currency, its value lies in how trustworthy it is, if no one believes it anymore, its value will decline, it is also based on supply and demand, it is not considered fraud because they agree with this currency, even you yourself use it.

Fiat currency is no longer related to gold but everything is linked to the dollar instead of money. the dollar is preferred over money. Despite everyone knowing it most people use the dollar and in fact we are also among them because the dollar has legal status due to which it is being used a lot despite being counterfeit. we can say that paper currency used to provide convenience to people. The dollar is beneficial in investment so it is being given more preference day after day. the law has declared it legal status then there is no harm in it it is being used more.

Even USD is not back up by gold and not considering how US set this arrangement during WW-II, but as a matter of fact USD very strong because the institutional big trust on USD. Market believe in its issuer (US Sovereign Credibility) especially on government ability to pay  debt (no sovereign default). They are believe that US has rigid rule of law and independen central bank which mean US regulationwill not change suddenly or arbitrarily. Beside that USD backed up with deepest market and the most liquid market in the world. Based on government guaranty or state authority and stable economic capacity, many institution has strong belive in USD so it has value, we can see when there are crisis, capital will run to USD not run away from USD, it is a proove USD provide secure asset, easy to convert, small risk liquidity and stiill be global valuation.

For now but give Trump a bout 15 months or so.