Since officially abandoning the gold standard in 1973, the dollar is what economists call fiat money. The word "fiat" comes from Latin and is often translated as a decree, but in summary, the term means that the money is not backed by a physical asset, like gold or silver. Its value is based only on the full faith and credit of the United States. This makes it much easier to increase the debt and resort to expansionary policies. Critics consider this damaging and see an economic crisis looming and inevitable. Defenders believe the economic damage would be bigger if nothing was done. In this video, we dive into the advantages and disadvantages of the system.