- Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity.
- The value of fiat money is derived from the relationship between supply and demand rather than the value of the material that the money is made of.
Federal (Public Debt)
- Public Debt in the United States is principally the debt of the federal government.
- In 2005 federal debt was about 60 percent of GDP.
- But in the last ten years the federal debt has almost doubled to 103 percent GDP.
- At the end of FY 2017 the gross US federal government debt is estimated to be $20.4 trillion, according to the FY18 Federal Budget.
- Of this gross amount, debt “Held by the Public: Other” is estimated by usgovernmentspending.com at $12.4 trillion, debt “
- Held by the Public: Federal Reserve System” (i.e. monetized debt) is estimated by usgovernmentspending.com at $2.46 trillion and debt “Held by Federal Government Accounts” is estimated at $5.53 trillion……(government printing money?)