Introduction Most people are aware that there is a government body that acts as the guardian of the economy - an economic sentinel who implements policies designed to keep the country operating smoothly. Unfortunately, most investors do not understand how or why the government involves itself in the economy. In the U.S., the answer lies … Continue reading The Federal Reserve

An IOU is an informal document that acknowledges a debt owed, and this debt does not necessarily involve a monetary value as it can also involve physical products. The informal nature of an IOU means there may be some uncertainty about whether it is a binding contract, and the legal remedies available to the lender … Continue reading What is an ‘IOU’?

Fiat Money is any legal currency that is not backed by a physical commodity, nor does the material it is made of have significant value. The currency’s stated value exists because of government decree. Hence the name “fiat,” which comes from Latin and means, “It shall be.” A currency that is fiat money maintains its … Continue reading Fiat Money