Why Fiat Currency Is Bad
August 19, 2026
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Writes Bill Madden:
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There are two interesting charts in this discussion of debt. See this.
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Our dollar transitioned from money to unconstitutional fiat currency in August of 1971. The chart on our federal interest expense shows a decided increase and long-term trend up just about that time. With gold backing the international dollar until 8/15/1971 and silver backing the domestic dollar until the end of 1964, our super-rich controllers could only increase the dollars in circulation commensurate with the gold and silver available for backing the dollar. For the super-rich owners of Corporate America, the more dollars sloshing around in circulation, the more revenue and profit for them.
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By discontinuing the precious metal backing for our domestic and international dollars, the wealthy families owning Corporate America and controlling our government could have dollars printed without the discipline provided by gold and silver. Fearing a taxpayer revolt, they began running the government and subsidizing government squandering with borrowed dollars instead of tax revenue which they created from thin air. Like most rogue (controlled by oligarchs) governments, the dollar printing became a frenzy as may be determined by the increase in interest expense.
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The second chart provides perspective on major budget items in relation to each other. Considering the number of people who are receiving Social Security payments without ever having contributed, this figure could actually be much higher than it is.
The Best of Llewellyn H. Rockwell, Jr.
Llewellyn H. Rockwell, Jr., former editorial assistant to Ludwig von Mises and congressional chief of staff to Ron Paul, is founder and chairman of the Mises Institute, executor for the estate of Murray N. Rothbard, and editor of LewRockwell.com. He is the author of Against the State and Against the Left. Follow him on Facebook and Twitter.
