The Bitcoin Standard Podcast 292. The Fiat Standard Lecture 11: Fiat States
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Sep 23, 2025 Dive into the pitfalls of fiat money and its global impact. Discover how reserve currencies export inflation and entrench countries in debt traps. Explore the disastrous legacy of the IMF and World Bank, which reinforce dependence on unreliable financial systems. Learn about the historical link between fiat-driven inflation and protectionism, sparking conflicts throughout the 20th century. Finally, uncover how genuine growth relies on freedom and sound money, not on failed debt-driven solutions.
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Power Of Reserve Currencies
- Reserve currencies let issuing countries export inflation to others by having foreigners hold their currency as reserves.
- The larger the currency's global liquidity, the more inflation the issuer can create with less domestic price impact.
International Money Vs Monetary Nationalism
- A true international monetary system lets money move freely between regions like within a single country.
- Fiat-era monetary nationalism fragments money and channels national savings into central bank reserves controlled by governments.
Fiat Era Halted Catch-Up Growth
- Countries that missed industrialization before 1914 faced uphill development because the fiat era removed hard money discipline.
- Fiat money disrupted long-term saving and hindered many countries' ability to industrialize.
