The dollar needs a new bonfire of the bills

Fiat money, first introduced in colonial America, relied on periodic burning of tax revenue to maintain its value. Paper money, while existing since 11th-century China, was considered truly valuable only as metallic coins by colonial Americans. The Massachusetts colony is credited with inventing fiat money in 1690, referring to their local paper as 'bills of credit.' These bills became scarcities when burned after being collected as taxes, reinforcing public trust in their value. Over 300 years later, the Federal Reserve has similarly 'burned' $2.4 trillion of printed dollars by allowing bonds to mature, yet its methods lack the public visibility of historical practices. Recently, Fed Chair Powell announced a potential shift back to printing money, raising concerns as the U.S. federal government has accumulated $6 trillion in debt, contrasting with George Washington's advice for responsible debt management. This modern monetary policy, unlike the historical burning of tax receipts, fails to convincingly assure the public about the stability of fiat money.

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