The dollar needs a new bonfire of the bills

This article discusses the historical context of fiat money, particularly its origins in colonial America, where bills of credit were periodically burned to reinforce their value. Colonial governments aimed to instill public trust in paper currency by demonstrating fiscal responsibility through what was termed a 'bonfire of the bills.' Fast forward to today, the Federal Reserve has reduced the amount of money in circulation—approximately $2.4 trillion—in a more modern but less public manner compared to historical practices. However, Federal Reserve Chair Powell recently indicated a potential shift back to increasing reserves by purchasing bonds, suggesting that the Fed may start printing money again. Meanwhile, despite a strong economy, the U.S. government has added $6 trillion in debt, raising concerns about fiat money’s value. The article illustrates a significant evolution from historical tax-backed currency practices to current monetary policies that lack the same public trust and accountability.

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