Someone asked me what fiat meant the other day as they had never heard the term.
I had to think about it for a second and the best way I could describe it was government favors.
Like a deadbeat parent that takes the money from their children's paychecks and spends most of it on alcohol and only gives a small portion back to his favorite child.
That's not fiat... Fiat is just Latin for "money by decree"
It means it's issued by a central authority and not backed by anything.
Its Latin for "by decree"
It means ' by command' or 'because I say so'. The 'I' in this case being the state.
When you tell your kids no shoes on the couch this is rulemaking by fiat. When the state tells you what money to use it's fiat money.
When parents say "because I said so" it always makes me cringe. Such a terrible rhetoric and premise to teach.
