The major problem with fiats is most likely their monopoly status in currency zones, not the intrinsic nature of fiat money as such. One thing you’ll notice is that rapidly-melting currencies end up being rather useless for international trades, so governments that inflate their currencies too fast find themselves unable to procure goods and services in the quantities they want. As it so happens, trade ends up being conducted in currencies that are relatively stable over the medium term–even third-world despots are forced to trade in dollars and euros.

The inflationary pressure comes from the monopoly privilege governments grant to themselves. The temptation is ever present to run a perpetual deficit financed with printed money. They’re able to do this because, while markets may ultimately dictate which currency is used in international trade, the citizens of a country are forced to use the government’s fiat. This allows every government some leeway to inflate. If currency markets existed both domestically *and* internationally, i.e., currency was provided by competing private institutions rather than monopolies, the overwhelming market pressure would be for a currency with a stable value (and there’d be no pressure to buy votes via stealth devaluation). Debtors are hurt by deflation, and lenders are hurt by inflation–so the market demand is for a stable currency.

Interesting, just because I am not so much into the banking thing, I immediately saw the parallel in relation to the addicts of the liberal victim world view. Your piece is utterly applicable all the way through to how they use our hearts against us and how they react when cut off. In fact, I think the idea of Tough Love is a liberal label, implying love that is hard. Love in and of itself is not tough particularly to the recipient: it is truth, desiring reality for the loved one, willingness to do anything so that the loved one will walk in health, life, freedom. In my mind, there is no such thing as Tough Love, since love is itself. If anything, love is tough for the lover, as one is often asked to employ the long suffering, the patience, the kindness – in the face of wherever the recipient is at the time. Example: The Father, loving us eternally, while we, seemingly eternally, don’t get it. Who’s finding it tougher? Just sayin.

I have no problem paying back what I agreed and contracted to pay, even if that person/institution is a whore. However, I refuse to pay more than I agreed to.

If you have debt, get rid of it as quickly as possible, then pay cash from then on. Invest your money only in assets YOU have control over, and quit relying on other people to make money for you.

If you owe money to one of the Too Big to Fail guys, try to transfer your debt to a smaller, local bank. Yes, the TBTF will get your money, but at least they will no longer be receiving interest on it.