I'm A Fiat Slave, And So Are You

Tyler Durden's picture

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Fiat money is at base a form of indirect wealth transfer from those forced to hold the money to those issuing the money.

I describe the pernicious servitude created by debt as debt serfdom, as serfdom implies a neofeudal arrangement that requires serfs' acceptance of this financial yoke of servitude. In other words, debt is freely accepted as the line of least resistance in a system that incentivizes debt and places high barriers to debt-free independence from a Status Quo operated to benefit the owners and issuers of debt, not the debtors.

Correspondent Jeff W. has identified an even more insidious form of monetary servitude that he calls fiat slavery, as the servitude is enforced by fiat (unbacked government-issued) money.

In other words, being forced to use state-issued fiat currency is a form of servitude, as fiat money is at base a form of indirect wealth transfer from those forced to hold the money to those issuing the money.

Beyond this state-enforced wealth transfer from citizens to the state, there is a secondary wealth transfer going on in any fiat-money system: the neofeudal financial nobility who are closest to the money spigot get to buy whatever real-world assets and income streams offer the best return before the money trickles down to the debt-serfs paying interest and taxes.

For example, the financial nobility can borrow billions of dollars at near-zero interest from the Federal Reserve, and use this nearly-free fiat money to buy student loans that pay 7+% annually. They can also snap up houses for cash that the nobility then rents to debt-serfs who have been outbid by those with the extraordinary advantage of unlimited access to the Fed's nearly-free fiat money.

Here is Jeff's commentary:


In a world where every country prints fiat money, the entire human race today, except for its money masters, is subjected to fiat slavery.

Almost everyone understands what it means to be a tax slave. It means that people must work several months of the year for the benefit of the taxing authorities. Taxes in the U.S. today are several times higher than they were 100 years ago, and at present-day tax levels, today’s Americans are rightly called tax slaves.

What it means to be a debt slave is also easy to understand. It means that one must spend a large fraction of one’s time to earn money to pay creditors. Millions of Americans today are mired deeply in debt, but today’s America is also a country where if you personally stay out of debt, the government will go into debt for you.

Each American taxpayer is on the hook for his or her share of over $17 trillion in debt that government admits to; the real debt total is much higher.

 Government leaders are eagerly plunging us ever deeper into debt each year.

Most Americans also have personal experience of being a wage slave. It means that a person has no way to make a living except by selling his labor into a glutted market. Thomas Jefferson hoped that most Americans could own their own farms and thereby profit from capital improvements that they made through their own efforts. Such Americans could be their own bosses and escape wage slavery. But today we live in an age of huge factory farms, and it is more difficult than ever to establish or run any small business. Thus wage slavery is the norm for Americans today.

But few people understand what it means to be a fiat slave. Being a fiat slave means that one lives in a country where the machinery of money printing is used to maximize wealth extraction from its citizens.

How do they maximize the wealth they can extract through money printing? 

First of all, it is done by increasing of the volume of transactions that take place in a given fiat currency. Each newly-printed unit of fiat is a drop in the bucket in terms of the inflation it creates, and more fiat can be printed without causing serious inflation if a country has a bigger bucket.

For example, Canada’s GDP is about 11% the size of America’s. At first glance this might be taken to mean that Americans can print nine times more dollars than Canadians. But we must also remember that U.S. dollars circulate throughout the world, and Eurodollars and petrodollars also add to the total of U.S. dollar transactions.

Because of extraterritorial dollar circulation, the U.S. might actually be able to print 20 times more than Canada without causing serious (in terms of causing political problems for the money printers) inflation. From this we see why money printers may want to fight wars to protect America’s dollar circulation areas in the Middle East or in Afghanistan, where much of the opium trade is transacted in dollars.

But a country’s fiat transaction volume is only part of the equation. A more important part of the equation is the inflation level. Imagine two countries: Country A with an annual fiat transaction volume of 100 trillion units per year and Country B with a volume of 50 trillion. Everything else being equal, Country B can only print half as much fiat each year to give to its government and its banking elite.

But suppose further that the inflation rate in Country A is 5% absent any money printing, and the inflation rate in Country B is negative 2% due to global wage arbitrage, regulatory suppression of small businesses, and high unemployment. Suppose further that a real inflation rate of 5% is the money printers’ upper limit because it is the maximum asset erosion that wealthy bondholders will tolerate. Now we see that potential money printing in Country A is reduced to zero, while potential money printing in Country B is 3.5 trillion units (50 trillion times seven percent).

American money printers thus have trillions of dollars in incentive to support deflationary policies, which may include global wage arbitrage (sending work to the country where labor is cheapest), suppression of job creation by small businesses, suppression of private-sector labor unions, support for open borders immigration, commodity price suppression through market interventions, support for genetically modified seeds so as to push agricultural prices down, support for owners taking a larger share of corporate revenues so as to reduce labor’s share, and support for high levels of consumer debt so as to dampen inflationary pressure in a nation of demoralized debt slaves. All of these oppressive policies enrich the money printers at the citizens' expense.

Tax slavery, debt slavery, wage slavery, and fiat slavery are four methods that elites employ to extract wealth from the people. To this list we should also add their encouragement of Ponzi gambling. Ponzi asset bubbles are constantly being created and citizens are encouraged to go into debt to “cash in” on bubble profits (or get wiped out in bubble crashes). Those five methods are the major wealth extraction methods they use.

Those who support the cause of human freedom must resist tax slavery by insisting on a government that keeps its spending down to the bare basics. Free people must also support a culture that discourages people from getting into debt and encourages them to get out of debt and stay out. They must demand that government debt be rolled back to zero.

Policies that favor capital accumulation in families and a supportive legal environment for small businesses are the antidotes to wage slavery, and free people must also demand that there be zero wealth extraction from the citizens through money printing. That can best be done by requiring 100% gold backing for currency and eliminating fractional reserve banking. 

Eliminating the inflation that comes from money printing will also go a long way toward eliminating asset bubbles and Ponzi gambling on asset bubbles.
Older Americans have watched as a once-free people have been reduced to slave-like conditions. Not only has wealth been ruthlessly extracted from the people, but today’s surveillance state is more intrusive than ever, and the police are increasingly insolent and imperious.

What are we going to do? A necessary first step is to take the blinders off and to see clearly how elites are victimizing you. A second step is to figure out what practical steps you can take as an American to secure the blessings of liberty for yourself and your posterity. Freedom is not free, as the saying goes, and the price of freedom is not only eternal vigilance, but also intelligent action. We should begin this work today. 

Thank you, Jeff, for describing our fiat bondage. Awareness of the sources of wealth transfer and monetary servitude is the first step forward.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
hardmedicine's picture

With the insurance company and bank bailouts we are all just communists now. Barter. That is the only way in which to take back your power. That and gold and silver. But the gold and silver are just long-term insurance. Fiat enables them to manipulate that too. Eyes wide open!

FinalEvent's picture

Well not really, I converted all my currency to all but FIAT.

john39's picture

the end is certainly forseable, to anyone paying attention.  not like this sort of thing hasn't happened before... posted this another thread, but worth reposting.  Americans, would you like a glimpse at your future? simply look to the past:


"The dying days of a regime: This photo, taken in Shanghai in 1949, shows a queue to exchange worthless paper money for gold"

Four chan's picture

the true feds dual mandate since inception;

enslave a free people to debt servitude, capture all assets through boom and bust cycles it creates using worthless specie.


mission accomplished

chumbawamba's picture

Father Coughlin exposes the Federal Reserve...back in 1940:


On December 23, 1913--27 years ago--a Federal Reserve Act was approved by the Congress of the United States. This Act permitted bankers to establish a bankers' bank- or, to be more precise, 12 bankers' banks situated one in each regional division of the United States of America... In other words, the Federal Reserve Banking System is a privately owned corporation. It is not a Government owned corporation as some persons believe....It is both amusing and alarming to learn that not only some factory workers but also some professional and business men labor under the impression that the Federal Reserve banking system is a Government owned corporation.

I am Chumbawamba.

J S Bach's picture

How easy it would be to just say "no" to all of this usurious bullshit.  This is precisely why "they" have to control the media, advertising and educational institutions along with their counterfeit institutions known as "Central Banks".  As long as the majority of people remain uninformed as to this (not that complicated) system of servitude, "they" remain in power and the beneficiaries of the sheep's blissfully unaware largess.


And although this makes many readers uncomfortable, it is also why they must perpetually villainize the National Socialist economic policies which brought Weimar-depressed Germany almost instantly out of the Great Depression.  No, it wasn't excessive arms buildups, etc... it was purely an economics switcharoo in which "money" served the people... not the other way around (which is what central-bank-debt-based-usury-currencies are all about today).


Folks, when the great reset occurs, we must pray that there are enough educated and "untouchable" people in charge who will at least propose the end of all debt-based money systems.

Help Is Not Coming's picture

"How easy it would be to just say "no" to all of this usurious bullshit."

You CAN say "No" to this usurious bullshit. Just redeem your FRNs for lawful money by going to any Federal Reserve Bank, walking in and ask to "redeem them for lawful money pursuant to Section 12 USC 411." Better yet, write that as a restricted endorsement when you deposit any check into your account. The bank then can't fractional reserve lend out your money since it's no longer a FRN in your account.

So yes, you can just say "No".

Headbanger's picture

Problem is that nobody gives a fuck now really because they all know there isnt a thing they can do about it.

It's like everybody is just waiting for the hammer to drop and get it over with finally so we can take it from there.

Obama has killed this country with apathy.

Four chan's picture

the drug addict kennedy, bastard lbj, thief and his cfr buddy nixon kissinger, idiot ford,

dreamer carter, blockhead reader reagan, cia chief bush, criminal philanderer clinton, and

retard puppet gw bush, had some thing to do with it too in all fairness.

i think the two party system is to blame generally as the common link.

TSTM's picture

It goes back much further. First the foundation had to be weakened.

Oldwood's picture

They have stolen our future through financialization and debt. There is no money left that is not a claim on future productivity. Terms get longer while the interest get lower, proof that there is no desire for repayment, only the maintenance of debt. At these low rates we know relative to inflation there is no profit in credit, so what other reason do they have other than the stranglehold of permanent indebtedness. We sold ourselves into indentured servitude with no way to earn our release.

chumbawamba's picture

They know the principal can never be repaid.  They just want to collect the interest payments on their fake money loaned out of thin air until it all implodes.  They sell air that they don't even own for substance (and thank you for the down payment as well).

I am Chumbawamba.

p00k1e's picture


Nah.  The 2000 election should have been finalized with a run-off election and not the Supreme Court.  The Supreme Court had no business getting involved.

Not to mention corporations are now people. 

Anusocracy's picture

Debt serfdom is not the correct phrase.

It is government serfdom.

McMolotov's picture

Turn on, tune in, drop out. Those damn dirty hippies were on to something.

Raging Debate's picture

Hardmedicine - Yes, after facism comes communism. The latter part dictated how you will spend your last few pennies on another OR ELSE. We got to fund the rise of the east and now get a hollowed out country and communism. How quaint.

Headbanger's picture

No... Did you watch the entire video? 

You'll see it explain there's a well know group of humans who were involved as well.

LawsofPhysics's picture

Stop accepting fiat in exchange for your labor asshat.  Demand something more real.

nothing changes otherwise.

CH1's picture

Stop accepting fiat in exchange for your labor... nothing changes otherwise.

Yes, and that's where the stackers fail. The never USE their stacks.

The Bitcoin kids have it right: If you want results, you have to USE your non-state money.

LawsofPhysics's picture

I have been using and accepting PMs for quite a while. In addition, I trade labor for labor all the time.  My mechanic wants some fresh veggies, my cars need some work...

AmericasCicero's picture

Blah Blah gold standard blah blah no fractional reserves.  A dreamworld.  Won't be able to do anything about it until they collapse on their own.

kchrisc's picture

Liberty is the opposite of obedience.

The most powerful weapon the American people have is Rejection.

The system of fraud and theft that has been built up upon the backs of the American people is dependent upon out backs. Withdrew our backs, and the whole thing collapses. This is our greatest weapon.

Quit Paying--put it into food, steel and lead, and precious metals, etc. They stole what ever "debt money" they loaned you in the first place via fraudulent-reserve banking and soon you won't be able to pay them anyways, so just stop now.

Quit Obeying--If they are in violation of the Constitution then they are criminals and not legitimate.

Quit Playing--Quit being a tool for them to use.

The Four Rs
Rejection: Quit paying, quit obeying, quit playing
Revolution: It is inevitable, so prepare, as they are.
Retribution: The guilty must answer for their crimes against the American people and the Constitution.
Restoration: Restore the American people, country and Constitutional republic.

CH1's picture

Aside from treating the Constitution as kind of sacred, I nominate this for Post Of The Day!

Why should anything change so long as we keep obeying?

Oldwood's picture

The challenge in war is to win without becoming your enemy. It is important to me to be honest and true to my word. If I feel the system is corrupt, the answer does not come to me that corruption is the solution. The answer is to simply not participate, which does not mean to perpetrate fraud and deceit, nor fail to live up to the promises I have made. As in war, it is important to choose our battles wisely.

kchrisc's picture

"...the answer is to simply not participate..."

The most powerful weapon the American people have is Rejection.

The system of fraud and theft that has been built up upon the backs of the American people is dependent upon out backs. Withdrew our backs, and the whole thing collapses. This is our greatest weapon.

Quit Paying--put it into food, steel and lead, and precious metals, etc. They stole what ever "debt money" they loaned you in the first place via fraudulent-reserve banking and soon you won't be able to pay them anyways, so just stop now.

Quit Obeying--If they are in violation of the Constitution then they are criminals and not legitimate.

Quit Playing--Quit being a tool for them to use.

bbq on whitehouse lawn's picture

Something must be solid ground or a line that is never crossed.
If you want to make that line the constitution it's as good a place as any.

kchrisc's picture

It is not that the Constitutional is sacred or anything, but it is currently "the law of the land."

The ideas is to have a clear goal to work toward, the Restoration of the Constitutional republic, instead of being divided over a goal.

We, the American people can debate and argue about changes AFTER we have ousted the criminals from DC, the city halls, the county seats and their bankster masters.

Restore what we have, or at least are supposed to have, then look to the future.


The Four Rs!

goneYonder's picture

I haven't read anything close to a decent rebuttal of Spooner's No Treason: Constitution of No Authority. Could someone throw a link up if there is one? 

But, the Constitution would be a fine place to start if people wanted to improve conditions. 

Seize Mars's picture

Ok I hear you bro. But try to be practical for a second. If, for example, one refuses to pay taxes, armed men will show up. Do you understand?
That's fine as long as every guy on my block is similarly situated, but they aren't. Most people aren't really ready for a swat raid.

p00k1e's picture


People value life too much.  The ease of getting onto the Government disability dole testifies.

Edward and Elaine Brown tried all that you cats speak of.  End the end, they are in jail by themselves while we’re out here indirectly paying for their upkeep.

"The Browns filed numerous pre-trial motions, contending (among other things) that the United States is owned by Paine Webber...."

hardmedicine's picture

ha.. spoke to a gentleman who actually is on Elaine Brown's visitor list here in Texas. They are not allowed visits from the general public, only family. This is not the way to Valhalla.. you can only withdraw from the system , but you have to pretend to pay taxes just as they pretend to be working on behalf of our benefit.

kchrisc's picture

Every American needs to understand first that not paying, not obeying, and not playing is their first and most potent weapon.

With that said, every American understanding that needs to look at their situation and make a decision of what is best for them.

Doesn't have to start with taxes. Preferably it starts with debt and progresses from there. If you are struggling working 3 jobs to pay your mortgage, stop, save the wealth, and deny it to the bankster, and live in the home for a year or more. Put the wealth into gold, silver, steel and lead. They stole the money they loaned you in the first place.

Stop paying on the credit cards, stop paying on the student loans, just stop. Then looks for more ways to not pay, and more ways to not obey and more ways to not play.


Like I said, "Liberty is the opposite of obedience."

kchrisc's picture

Seize Mars

The most important thing is for a person to take an ACTIVE step to Restoring Liberty to themselves. A person may say "no more" and quit everything and risk all now. Or a person may look at his situation and decide that there is nothing that he is able to do now.

Both are fine. so long as a person is ACTIVELY considering what his options are in Restoring Liberty to himself, and his family.

However, hiding behind, "They may come for me, so I won't even think about it much less do anything," etc. is not an ACTIVE response. That is just more of the same--tacit obedience.

Be thinking about Liberty,  what you can do, and do what you can.


"Liberty is the opposite of obedience."



Radical Marijuana's picture

Too bad I have to almost totally agree with your comment kchrisc. I WISH that your analysis was not correct, but it appears unavoidable to me. Of course, I already knew everything in this article above, for quite a while. However, I find it to be the work of just another run of the mill reactionary revolutionary, when come to "solutions." So sad, but I think that too of your last line: "Restore the American people, country and Constitutional republic."

It is nostalgic nonsense to think we could resolve problems such as globalized electronic frauds, backed by the force of atomic bombs, by going BACKWARDS, to restore any old-fashioned impossible ideals. Going forward through a series of profound paradigm shifts in the philosophy of science is what is necessary for revolution in a technologically based civilization.

In my opinion, the ruling classes are criminally insane, and will keep on pushing events towards the situations that you outlined, kchrisc.  However, resistance then will only become a necessary phase of the psychotic breakdown of the social pyramid systems, based on runaway legalized lies, backed by legalized violence, driving themselves through their own mad self-destruction, which will necessarily provoke the rejection responses to those developments. Such rejection responses shall actually only contribute to the collapse into chaos. The fantasies about "restoration" may well motivate some opposition. However, they continue to propose magical words as the basis of solutions, which will be able to go backwards, to realize the same old-fashioned impossible ideals, which actually never worked, but always made the opposite happen in the real world.

Counterfiat's picture

- Liberty is the opposite of obedience.


No. Obedience to the good way is liberating. Govt obedience to a good constitution, provides the framework for a good society. Liberty can only be found in the embracing and living the right way. Jesus' commandments are not grievous, they give liberty, and grace is available to empower a meaningful life. www.ExploreChristianity.com

bugs_'s picture

debt serf! fiat slave!

tastes great!  less filling!

The Limerick King's picture



I'm trying so hard just to save

The interest I'm getting is grave

They're forcing my hand

I'm centrally planned

Their fiat has made me a slave!

nope-1004's picture



Geithners new book at real tell

About how the economy fell

Except the truth is in hiding

Ben and Janet aren't confiding

And for that may all three rot in hell.

JustObserving's picture

Fiat allows the elites to engage in permanent war.

The Vietnam war cost only $738 billion in 2011 dollars and yet forced the US off the gold standard on August 15, 1971.

The wars in Iraq and Afghanistan cost $6000 billion and Obama can still engage in wars in Syria and Ukraine and wherever else he pleases.

Fiat currency is a threat to world peace.

AUD's picture

It also allows elites to magically turn shit into money, giving the illusion for a time at least, that everybody is rich, since even the poorest, stupidest bastard shits.

assistedliving's picture

Bravo JO....and blame Darth Cheney for the last $6T

imbtween's picture

why is is called a "transfer of wealth" when it is outright theft? If I rob a 7-11, it is not referred to as a transfer of wealth from the cash register to my pocket, is it? What bullshit.

OC Sure's picture

Taxes are robbery. Counterfeiting is theft.



SheepDog-One's picture

A no shit Sherlock article.

Unknown User's picture

How idiotic.  Fiat is not the problem.  Who issues fiat is.

Watch the video...





centerline's picture

+1.  It is the "who" that matters.  Not the "what."