"Greenbacks were the first fiat currency issued by the United States. You may be too young to remember silver certificates issued by the U.S. Treasury. Now we have Federal Reserve Notes backed by the full faith and credit of the U.S. government, not backed by anything but good faith, like greenbacks. Inflatable. They can simply prijnt more money and make all the money under your mattress worth less." (Note the full, unedited paragraph here)
Greenbacks were the first fiat currency issued by the United States. Now we have Federal Reserve Notes backed by the full faith and credit of the U.S. government. Therefore, Abraham Lincoln took the United States off of the gold standard.
This is no different than
More people eat ice cream in the summer. More people get skin cancer in the summer. Therefore, ice cream causes skin cancer.
Or what has now become my favorite.
Pluto was discovered in 1930. There were no Autism diagnoses before 1930. Therefore, Pluto causes Autism.
Guys. We make fun of the wokesters for doing this.
Correlation Does Not Imply Causation: 5 Real-World Examples
The phrase “correlation does not imply causation” is often used in statistics to point out that correlation between two variables does not necessarily mean that one variable causes the other to occur.
Flip your theory.
"Correlation does not disprove causation."
You are welcome.
The West adopted paper money in the 18th century, facing controversies over inflation, notably in American colonies and France. Wars prompted the use of fiat currencies, like the American "greenbacks" during the Civil War.
https://www.geeksforgeeks.org/finance/fiat-money-meaning-advantages-disadvantages-and-examples/
Fiat Money : Meaning, Advantages, Disadvantages and ExamplesLast Updated : 23 Jul, 2025
What is Fiat Money?
Fiat money is defined as a form of currency not tied to any commodity like gold or silver and is typically declared legal tender by the issuing government through a regulatory authority. Its value hinges on the dynamics of supply and demand and the stability of the government that authorizes it. Modern paper currencies, including the U.S. dollar and the euro, are examples of fiat money. Unlike commodity money, which is linked to precious metals, and representative money, which represents a claim on commodities, fiat money relies on the creditworthiness of the issuing government. Various factors, such as inflation, government policies, and economic conditions, can impact the value of fiat money. Introduced as an alternative to commodity money, it represents a flexible yet government-dependent system where broader economic and political contexts shape its worth.
Geeky Takeaways:
Fiat money is a currency that is not backed by commodities like gold or silver and is declared legal tender by the issuing government.
It depends on supply-and-demand dynamics and the stability of the authorizing government.
These include aspects such as inflation, policies, and economic conditions that impact value.