by tonytran2015 (Melbourne, Australia).
You need to know about your money in order to understand the many actions of your government.
1. Fiat money
Figure 1: Government employees are paid with fiat money. All citizens have to pay their taxes with that fiat money.
Nearly every country in the world uses money issued based on its governing power. Such a money is called fiat money.
A fiat money is not guaranteed by any goods such as gold or silver. A fiat piece of money is just a certificate of some amount of work done for the government by some of its employees and those certificates can be used by anyone to pay taxes to or buy some goods or service from the goverment.
Refusal to pay taxes results in jail terms. Therefore the population at large have to exchange their goods or service for those pieces of fiat money from…
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