The concept of "fiat" really goes back to the Civil War. In 1862, Abraham Lincoln started printing "greenbacks" that were not convertible into gold, but were declared "legal tender".
450 million of these were printed.
Amazingly, gold-backed dollars co-existed with the new greenbacks. When the North was winning, the gold dollars were worth only a 10% premium to the greenbacks. When the south looked good, the premium expanded to 300%.
In the end, fiat won the war.
450 million of these were printed.
Amazingly, gold-backed dollars co-existed with the new greenbacks. When the North was winning, the gold dollars were worth only a 10% premium to the greenbacks. When the south looked good, the premium expanded to 300%.
In the end, fiat won the war.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
