A fiat system of money must be backed by CONfidence. It has to be the rule of law protecting the holder of the fiat guaranteeing that piece of paper will be holding its value over a reasonable period of time (you fill in the time period) and that you can readily access your paper money and transport your paper money without encumberment. Your paper fiat must be available at anytime in the future for you to exchange for something you value, such as food, medicine, artwork, etc. ON another planet many many years ago, countries backed their fiat money with gold/silver. This allowed CONfidence to be held until those ponzi years vanquished the illusion that gold was backing the currencies of the respective developed nations.
A new backing developed for CONfidence and that was a complex system of propaganda/military/general illusion. Now that system is unraveling...(see Cyprus/Greece). These are beta tests to see how the multiple solutions/transitions to the next system will transpire. The lessons that we should be learning at this time is how difficult CONfidence is to restore once it is lost. For example look at Greece. They are in the midst of the dreaded "Bank Run". The ELA just approved 900 million more Euros to keep liquidity in the Greek Banks that just reopened after being closed for two weeks. Rather than ask why is there still a bank run, the real question is WHY IN THE HELL WOULDN'T THERE BE A BANK RUN?
So how long will the rest of the pseudosolvent Eurozone countries like Germany pay the tab for Greece's debt?
This is only the beginning of the dilemma for central planners (monopoly men). How to restore CONfidence once CONfidence is lost. How much fiat can you pour down a hole that has no bottom? How much can you bleed to save a trauma victim that can't be saved. We have learned one thing however......YOU DON'T BUY GOLD! That's what Bloomberg CNBS etc. are all telling you every hour and you're even beginning to believe it aren't you. hehehehhehehehe....... oh man, these guys are good. gl to all of you and I hope the sun shines in your face and the wind is at your back.......