Anon Archived What is the most laymans man way of explaining FIAT? (Monetary system, not the cars) (whatever)
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Anon Archived What is the most laymans man way of explaining FIAT? (Monetary system, not the cars) (whatever)
submitted ago by 3565146?
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[–] cyclops1771 ago (edited ago)
Pants.
The analogy is "pants."
Gold is a pair of pants. You wear them, you can touch them, they can be worn by someone else. They have intrinsic and physical value.
Fiat currency is a drawing or picture of a pair pants. You can't wear them. You can trade these pictures for other pictures, but they are still just pictures. Going out in public without pants, when you get stopped, you show them the picture of the pants.
See? I have pants on!
But those aren't REAL pants, sir!
Wrong! The GOVERNMENT has declared these to be real pants, therefore, I am wearing pants!