What Is Fiat Money

What Is Fiat Money Fiat money is a currency established as money by government law. The term is a derivation from a Latin word fiat (let it become) used in the sense of an order or decree. It differs from commodity money and representative money. Fiat money is a currency established as money by government law. The term a derivation from a Latin word fiat (let it become) used in the sense of an order or decree. It differs from commodity money and representative money. Commodity money is created from a good, often a precious metal such as gold or silver, which has uses other than as a medium of exchange, while representative money simply represents a claim on such a good. The simplest definition of fiat money is:  Ã¢â‚¬Å"Money that exists because a government says so. MONEY MAKES THE WORLD GO AROUND Historically, most money was based on some commodity such as gold, silver, or other important goods, and had a value which could be expressed in terms of some amount of that commodity. Fiat money, by comparison, has no intrinsic value; its value is based on faith in the issuing government. How Fiat Money Works Fiat money is essentially a form of credit. When a government declares a currency to be legal tender, that means it can be exchanged for goods or services equivalent to the value of the currency, and the credit comes in the form of the assurance to the seller of the goods or services that the currency can be exchanged for further goods or services. From a purely theoretical perspective, fiat money reverses the relationship of prices and currency value. With commodity-based currency, one unit of currency is equal to some quantity X of a backing commodity. The price of a cheeseburger (or other product or service) is an equivalent value of some quantity of the same commodity, expressed in terms of units of the currency: So in other words, $1 might be worth 1/1000 ounce of gold, and a cheeseburger – after the maker of the cheeseburger considers his costs to make it, the amount of profit he must make, and what he thinks his market will be willing to pay for it – might be worth 3/1000 of an ounce of gold, which makes the cheeseburger worth $3. The backing commodity is what actually serves as the money, with the coins or paper bills simply representing a sort of â€Å"IOU† for a particular amount of it. HOW TO SAVE MONEY IN COLLEGE? With fiat currency, there is no backing commodity to serve as a common frame of reference, so the value of the currency is expressed in terms of the goods and services purchased with it: This is fine, of course, as long as everyone agrees that the currency represents a certain value. When the cheeseburger maker is reasonably certain that the $3 he charges for it will cover the costs of its production plus provide him a profit, then $1 is worth one-third of a cheeseburger. In turn, his suppliers must be reasonably certain that what he pays for the bun, meat, cheese, condiments, and gas or electric needed to cook it will cover their costs plus a profit, and so on. If confidence in the assumed value of the currency is lost at some point in the whole complex value chain that exists between wheat seeds, cow embryos, and the customer standing at the fast-food counter, the fragile system begins to break down, which we usually experience as price inflation. Are There Any Advantages of Fiat Money? Fiat money is a Keynesian economic concept, so the debate among economists about whether or not it’s a good idea, unfortunately, has a distinctly unhelpful sectarian tone to it. From the purely Keynesian perspective, fiat money provides the government a means to control prices – and by extension, consumption and production – by controlling the money supply. The more money available, the less each unit of money is worth, so prices inflate; remove money from the system and the unit value decreases, thus deflating prices. This is the basic idea behind â€Å"quantitative easing†; the government prints more money to encourage lending by banks and spending by businesses and consumers. If done properly, injecting money into the financial system should hypothetically boost lending and spending enough to increase production, which compensates for the inflation in prices caused by the availability of more money. Commodity-backed currency, on the other hand, cannot be so easily managed because the amount of money is determined by the reserves of the backing commodity, usually gold, and by the price at which that commodity is being traded. Price inflation and deflation in a commodity-backed system are caused by fluctuations in the price of the commodity. For example, let’s say Country A has a reserve of one million ounces of gold and sets the value of its currency (the A$) at 1 A$ = 1/100 ounce of gold when the price of gold is 100 A$ per ounce. As the price of gold changes, the real value of the currency changes, resulting in inflation or deflation: The price of Gold Value of 1,000,000 oz. Gold Reserve Amount of Currency Value of 1 A$ Inflation/Deflation Rate 100 A$ 100 million A$ 100 million A$ 1 A$ +/- 0% 105 A$ 105 million A$ 100 million A$ 1.05 A$ -5% (deflation; 1.05 A$ worth of goods are worth only 1 A$) 98 A$ 98 million A$ 100 million A$ 0.98 A$ +2% (inflation; 1 A$ only buys 0.98 A$ worth of goods) The government can moderate inflation/deflation by either increasing or decreasing the money supply as needed to match the value of reserves, or by buying or selling the reserves themselves. Because of the value of commodities changes rather quickly, and because adjusting either the money supply or a number of reserves also affects the price of the commodity, managing prices in a commodity-backed currency system is much more difficult than it is in a fiat money system. The biggest problem with the Keynesian point of view towards fiat money is that the verdict of history is rather clear that fiat money systems are ultimately catastrophic. One of the earliest examples is the long collapse of Roman currency between 0 and 244 A.D., where â€Å"fiat money† took the form of progressively reduced proportions of silver in Roman denarii coins. In 11th-century China, a shortage of copper for coins led to the issuance of one of the world’s first paper currencies, which devalued quickly as more and more were issued (and in all likelihood, widely counterfeited). Three times in French history – after the death of Louis XIV in 1715, after the French Revolution in 1789, and during the Great Depression in the 1930’s – fiat currency was issued, rapidly over-supplied, and collapsed due to hyperinflation. Germany’s post-WW I Weimar Republic, the Asian Financial Crisis in 1997, Mexico’s â€Å"Tequila Hangover† in 1994, the severe devaluation of the Russian ruble in 1998, the Argentine financial crisis of 1999-2002, and the almost unfathomable hyperinflation in Zimbabwe under Robert Mugabe are also examples of financial calamities brought on, one way or another, by the use of fiat money.

Case against death penalty Essay Example | Topics and Well Written Essays - 1750 words

Case against death penalty - Essay Example Some people view that the death penalty is barbaric, expensive, and executed in an arbitrary way. Some people also cite death penalty as a cause of psychological burden to the executers, prone to errors, and a mark of death and not life. Death penalty also causes sorrow to the families of victims, create unfairness, and fails as deterrence. With better ways of punishing capital offenders, there are many reasons justice systems should stop practicing death penalty, but employ other humane alternatives. Death penalty is a barbaric act of punishing capital offenders as compared to other options like life imprisonment (Banner 169). The practice of the death penalty is a cruel form of ending the life of capital offenders, because justice systems take their life with no thought about it. Today, it is true that the death penalty has evolved from severe brutality to more decent forms of taking the life of those sentenced to death. However, that notion that justice systems can end the life of a capital offender makes the practice brutal and barbaric. Some decades ago, this practice was a key attraction for all people in society, particular those who were interested in seeing others being shot or hanged. Despite the public attention to such events, the practice still displays the brutality that offenders receive when justice systems subjects them to this practice. With the society embracing a peaceful society where brutality is outdated, there are many reasons why justice systems should abo lish the death penalty.

Quality of life and functioning Essay Example | Topics and Well Written Essays - 1750 words

Quality of life and functioning - Essay Example A holistic nursing plan is vital when caring for patients as in the case of Mr. and Mrs. Thomas. Among other things, the nurse as a care giver should work together with health facilities and community members in the promotion and maintenance of health, illness care and rehabilitation of patients. Quality of Life and Functioning Good health is desirable for all people whether they are reasonable or not. However, in some instances, human beings end up being affected by chronic diseases, such as cancer, that have grievous implications on the life of an individual. Chronic diseases like cancer can lead a person to experience grave depression as he/she tries to deal with the effects of the disease. Individuals with chronic diseases often experience challenges in their social life as they are not able to enjoy life as expected (Aldwin & Gilmer, 2004). It is important to note that persons with chronic diseases need to be given adequate care. They should be assisted to meet their personal ne eds, such as bathing, toileting and dressing. In addition, they should be given the necessary assistance in performing their daily tasks like shopping, paying bills, using telephone, as well as navigating physical and social environments. Health promotion services should be able to optimize health and healthy behavior of individuals suffering from chronic diseases. ... Dangerous diseases, such as breast cancer affecting Mrs. Thomas, have serious effects in life. They can interfere with quite a lot of everyday activities of an individual. The disease may affect the senses making it difficult for the patient to see or hear, thereby affecting personal mobility. The disease also has diverse effects on the social life of the individual. Such patients should be assisted to achieve their normal body functioning as suggested by Aldwin and Gilmer (2004). Health care is extremely necessary since it enables the improvement of patients’ lives. Caregivers should consider nutrition, dental care, exercise and physical activity when attending to patients. Care givers should also ensure that patients suffering from cancer stop smoking cigarette. The main aspects that must be addressed in the life of the patient that should be managed effectively include the physical, psychological, and social components. Health promotion and quality of life practices are ver y important in ensuring that patients suffering from chronic diseases such as cancer get necessary support from their care givers. Without health promotion tips, the patient risks suffering from depression; they may even succumb to the disease easily (Aldwin & Gilmer, 2004). Personal perceptions affect Mrs. and Mr. Thomas in several ways. The two see their heath status to bee too serious that they will eventually succumb. Patients who have personal perceptions that they can never get well are very difficult to treat. The nurse can provide the best possible care but without change in perception, there can never be change. Personal perceptions lead to more depression. Secondly, Mr. and Mrs. Thomas believe that friends have

The Best Friendships Essay Example for Free

The Best Friendships Essay Most people say that friendship is the most common relationship that each of us has. Each relationship that we hold in our lives has a common ground of friendship. However, the levels might differ in terms of our interaction and personal communication with them. In every relationship that we have, a part of us is also revealed as we try to perform the responsibilities in line with the friendships that we have with various people. As of today, I can identify five types of friendships which are currently active in keeping my life as meaningful as possible. Similar with the rest of the world, one of the friendships that I treasure is the one I have built with strangers I have met along my journey in life. These set of people consists of my childhood friends, classmates from previous schools, colleagues from different organizations, co-workers, and other persons whom I have shared myself with as a friend. They are the people whom I have laughed with in times of fun and cried with in times of woe. The second type of friendship that I have is the one that I secure with the person I intend to spend the rest of my life with. I consider this a special type, for I know that amidst the romance, intimacy, and further stages in a couple’s relationship, it is friendship that will most probably be left after a long time of companionship. That is why I do not treat my partner entirely as a lover but at the same time as a best friend whom I can always rely on even without the affectionate words or romantic stuff. The third type of friendship in my life is the one that I have with my family. I am of those few blessed people who have close-knit relatives and family. The friendship I have with them may not be similar with the first two friendships I have discussed. Ours is much understood and profound. They are the ones whom I know will stay with me despite my weaknesses and faults because I was born related to them. It is sort of permanent in nature that once damaged, the scars would always be traceable. The fourth type of friendship that I believe to be as important as the previous ones I have mentioned would be the friendship that I have with myself. It is equally important with the external friendships that I have because it is responsible for a person’s well-being and personal development. The ability to treat oneself as a friend produces a much better relationship and friendship with other people. It amounts to the idea that one must first love oneself before he/she can love others. The fifth and last but definitely not the least is my friendship with God. Without this type of friendship, how could one see the beauty of life and befriend it? One may probe how can I claim such if the existence of this â€Å"Friend† is even physically questionable. The strength of my faith is the sole proof of friendship that I have with Him. This may be quite hard to characterize, for only people with the same kind of friendship can comprehend what I am trying to explain. Presenting all these types of friendships also reveals the different characters that mold my personality. Each relationship illustrates a different definition and function that I must deliver. I am a friend, a lover, a sister/brother, and a daughter/son with responsibilities to fulfill in my attempt to develop myself as well as these friendships.

The Clinton-lewinsky Scandal :: William Jefferson Clinton Essays

Lately, the top story in the news day after day, months after months have been about William Jefferson Clinton, also known as Bill. Who could blame them, there is nothing better than a story out of the ordinary, especially one with presidential status. For the past months he has been the most talked about figure, being the essential topic for news, talk shows, late night comedy and even going as far as the big screen. Talk about 'Primary Colors' and 'Wag the Dog.' What has gotten to me the most however, were the constant flow of Republicans, along with a few Democrats, who just want to say how shocked and embarrassed they are along with the people of the United States.The president had not just become the most talked about figure, but also one history had ever seen, so far that is, breaking the record and becoming a topic of conversation and debate 'twenty-four seven.' The people, who I think were most affected by this crisis and feel very sad for, are the Republicans, since they ha d lost severe amount of sleep over the president's bedroom crisis. They had to perform their republican duties by shocking our brains with the president's affair with Monica Lewinsky. We had to ignore the rest of the world news and its issues while they plough through the valley of lies, abuse of power and something they called high crimes and misdemeanors. At first we listen and listen and listen but eventually got bored. Not a whole lot of people felt comfortable smelling someone dirty laundry which was aired for a very, very long time. I personally got tired of this never ending story a very long time ago, since I have a great deal of respect for Mr. Clinton. I love the guy and no I am not talking romantically. I love Mr. Clinton as a teacher and most importantly as a role model. There is a story behind how Mr. Clinton earned my respect, which had nothing to do with his cute looks, but rather his character.From what I've seen, he is a hardworking, dedicated, and caring individual. Most of all, he maintains his personality as an ordinary person just like you and me. His work as a president for the past years speaks for it self. From what I've observed, Mr. Clinton is always willing to act on the people's behalf and addressing the issues that concern them the most. The Clinton-lewinsky Scandal :: William Jefferson Clinton Essays Lately, the top story in the news day after day, months after months have been about William Jefferson Clinton, also known as Bill. Who could blame them, there is nothing better than a story out of the ordinary, especially one with presidential status. For the past months he has been the most talked about figure, being the essential topic for news, talk shows, late night comedy and even going as far as the big screen. Talk about 'Primary Colors' and 'Wag the Dog.' What has gotten to me the most however, were the constant flow of Republicans, along with a few Democrats, who just want to say how shocked and embarrassed they are along with the people of the United States.The president had not just become the most talked about figure, but also one history had ever seen, so far that is, breaking the record and becoming a topic of conversation and debate 'twenty-four seven.' The people, who I think were most affected by this crisis and feel very sad for, are the Republicans, since they ha d lost severe amount of sleep over the president's bedroom crisis. They had to perform their republican duties by shocking our brains with the president's affair with Monica Lewinsky. We had to ignore the rest of the world news and its issues while they plough through the valley of lies, abuse of power and something they called high crimes and misdemeanors. At first we listen and listen and listen but eventually got bored. Not a whole lot of people felt comfortable smelling someone dirty laundry which was aired for a very, very long time. I personally got tired of this never ending story a very long time ago, since I have a great deal of respect for Mr. Clinton. I love the guy and no I am not talking romantically. I love Mr. Clinton as a teacher and most importantly as a role model. There is a story behind how Mr. Clinton earned my respect, which had nothing to do with his cute looks, but rather his character.From what I've seen, he is a hardworking, dedicated, and caring individual. Most of all, he maintains his personality as an ordinary person just like you and me. His work as a president for the past years speaks for it self. From what I've observed, Mr. Clinton is always willing to act on the people's behalf and addressing the issues that concern them the most.

Psy/220- Week 1 Check Point- Positive Psychology Themes

Positive Psychology Themes I believe that positive psychology gives a better understanding that we are able to improve the quality of our own lives by making positive decisions and learning from experiences in the past. Positive psychology attempts to encourage interpersonal relationships, happiness, and positive social interactions. Personal growth and our ability to control our own destiny are also factors of positive psychology. In my opinion positive psychology teaches us that we have the freedom to make autonomous choices in life even though the negative influences still surround us. Through the incremental theory, positive psychology has stressed the amount of importance of human adjustment as a malleable cognitive characteristic that encourages change in our beliefs, behaviors, and environments; in order to acquire personal freedom through self-control and self-esteem Positive psychology acknowledges that we are creatures and creators of our personal and social worlds. I think that we become less creatures of our world and more creators as we assume the responsibility for the actions we take in life. Through our freedom of autonomy we develop a certain sense of morality and ethics. Positive psychology also evaluates the issue of control in relation to leading a fulfilling life. If a person has an internal locus of control they are more likely to push to achieve their full potential in the things they do. On the other hand those with an external locus of control feel powerless within their own lives and attempt to settle for less than what they deserve because they feel they have no control over their life. If we were to fully understand the themes of positive psychology we could become more qualified to improve our own lives.

Othello, By William Shakespeare - 941 Words

Black Racism and the public’s reliance on stereotypes to judge individuals of a different decent can be traced throughout literature. The Elizabethan’s are no exception, and as their view of the word grew so did the permeation of racism and xenophobia in their society. Theater in Elizabethan England was full of stereotypical black characters that further perpetuated society’s racist tendencies. One play that challenged these stereotypes was Williams Shakespeare’s play Othello which depicts the tragedy of Othello, a Morris Captain. What is different about Shakespeare play is that the tragic hero is the black Othello and the villain a white Iago. Therefore, Shakespeare depiction of Othello as a tragic character and Iago as a villain, challenges Elizabethan’s stereotypes regarding individuals of African descent. Shakespeare challenges the stereotypical â€Å"type –casting of the black man† in Elizabethan society by depicting Othello as a respected and admired black man. For instance, in Elizabethan England the black man became a stock character that represented evil and lust. Joan Lord Hall in her book Othello: A Guide to the Play, pints out, â€Å"This typecasting of the black man as a lustful and devilish is dominant in dramatic characters of the period† (14). In other words, black characters were synonymous with villains and gradually the black man because a symbol for a lusty and devil like individual. Shakespeare on the other hand, decides to portray Othello as a respectedShow MoreRelatedOthello, By William Shakespeare957 Words   |  4 Pagesinnocent person kills himself while not knowing the truth. The best example of that would be the play Othello by the great William Shakespeare. As little as a handkerchief could make a difference if it is a symbol for something. In the play Othello by Shakespeare, handkerchief is first introduced by Othello to his beautiful mistress, Desdemona, as a sign of their l ove. At the end of the play what gets Othello to take extreme measures by the location of the handkerchief. As the symbol of the handkerchiefRead MoreOthello, By William Shakespeare1599 Words   |  7 Pages William Shakespeare’s 16th century play Othello is a duplicitous and fraudulent tale set alternatingly between Venice in act 1, and the island of Cyprus thereafter. The play follows the scandalous marriage between protagonist Othello, a Christian moore and the general of the army of Venice, and Desdemona, a respected and intelligent woman who also happens to be the daughter of the Venetian Senator Brabantio. Shakespeare undoubtedly positions the marriage to be viewed as heroic and noble, despiteRead MoreOthello, By William Shakespeare1218 Words   |  5 PagesIn a historical time period where emphasis was shifting from religion to race and ethnicity, key indicators of differences that perpetuated into racial prejudice and racial ideologies are evident in Othello by William Shakespeare. 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The tragic plot of Othello hinges on the potential of the villain, Iago, to deceive other characters, above all Roderigo and Othello, through encouraging them to misinterpret what they see. Othello is prone to Iago s ploys seeing that he himselfRead MoreOthello, By William Shakespeare1152 Words   |  5 Pages‘Othello’ was a tragedy of incomprehension at the deepest level of human dealings as no one in the play came to an understanding of himself or any of the surrounding characters. The play ‘Othello’ by William Shakespeare focused on tragedy through the anguish of the main character ‘Othello’ which lead to the suffering and death of numerous characters including himself. Appearance Vs. Reality challenged human dealings within the play ‘Othello’ as no-one came to see anyone’s true self and no-one seesRead MoreOthello, By William Shakespeare1178 Words   |  5 Pagesprofitable in condition of good and immorality. Othello is presented as good and Iago as evil, but Iago and Othello’s relationship also shares a distrust of their wives. The overall logical argument is based on love, jealousy and betrayal between two lovers that ultimately leads to their separation because of Iago’s evil plan. I am using this article to agree with Berry s view on how Iago separates two lovers just so he can take retaliation on Othello by manipulating everyone to unmasking their trueRead MoreOthello, By William Shakespeare1140 Words   |  5 Pagesâ€Å"Othello† is a play written by William Shakespeare in 1603. In this play, Shakespeare features three major characters: Othello, Iago, and Desdemona. Othello, a black man, and Desdemona, a white venetian secretly eloped in the play. Iago shows racism and prejudice towards their relationship because of their skin colors. In the play, Iago says: â€Å"Even now, now, very now, an old black ram is tupping your white ewe. Arise, arise! Awake the snorting citizens with the bell, or else the devil will make aRead MoreOthello, By William Shakespeare1825 Words   |  8 PagesWilliam Shakespeare’s plays transcends time and is renowned for their captivating plots and complex characters. Othello by William Shakespeare is a tragedy play th at portrays major themes such as racism, manipulation, and jealousy just to name a few. Throughout the whole play, these themes are represented through the conniving character from the play, Iago. Out of all the plays Shakespeare has written, Iago is believed to be the most complex villain of all times. During the play, Othello, a black