In part one of this series, we covered the difference between fiat and commodity money. As countries moved toward a fiat currency, the money supply increased and started to lose value. Part two of the series explored the rise of the central banks.

Last month we covered the two basic types of money: commodity money and fiat money. Commodity money, such as gold and silver, are based on something tangible and has intrinsic value. Fiat money, such as paper money, is based on whatever a government says it is worth.

Everyone reading this article is being robbed. We all use paper money and every day, governments are lowering its value. That value is being stolen from us. To understand how this is happening, we need to get to the basics of money. What is it?