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the senior fiat currency

Yesterday I posted that “the average age of the world’s fiat currencies is 30 years old”. We quickly reply that the Federal Reserve Act gave the US currency to the Federal Reserve 100 years ago. That certainly bumps the average up and seemingly gives the federal reserve note unique longevity.

The Bretton Woods Agreement did make the dollar unique in the history of fiat currencies. But even with that special feature allowing dollar inflation to be exported throughout the world, our dollar has been unbacked only since 1971 when the Nixon administration disconnected it from its gold backing. Thus, 40 years is the current age of our dollar as a fiat currency.

A generation is generally considered to be that period of time it takes a typical female child from birth to reproduction. So the average fiat currency lifespan is slightly greater than a generation. The looters are, unsurprisingly, wanting to eke every last dram of value out of it before they go. Apparently, in the Bilderberg world, 40 years = one generation.