Fiat based currency systems underlie the cause of financial crises: A critical examination which identifies the failure to effectuate a durable monetary framework on the worldwide economy

In this day and age, the old adage – ‘the rich get richer and the poor get poorer’ – has been taken more factually than a mere idiomatic expression. The reason for inflation and place for its necessity, or lack thereof, is misunderstood by many, and common talk of wealth has been misdirected into a fleeting, but pervasive segment of economics. The focus of this research is in the area of monetary economics, namely involving a critical analysis on what money actually is, where its value derives from, and how it plays a crucial part in our banking system. Such a study is important in order to better understand money from legal and political perspectives so that individuals can be better informed when making select financial commitments. The research approach adopted in this dissertation includes a wide review of literature on monetary systems and banking practices, as well as statements and publications from leading financial institutions and political figureheads in the United States. The findings from this research provide evidence that our current monetary system is fraudulently built on debt knowingly and intentionally, with no anticipated plans for change. The main conclusions drawn from this study are that there is much confusion regarding monetary matters, and that this is partly the reason why financial crises are misunderstood by the public, and subsequently neglected for the true matters of what it is worth. This dissertation recommends that modern economies rid themselves of our current monetary system, and return back to the use of gold and silver as honest money.