4.9 Who Controls the Fiat System and Their Benefits

Four main entities control the fiat monetary system, each benefiting differently:

1. Government: Issues debt (bonds) to finance activities, funded by central bank purchases when demand is insufficient. This allows government spending without immediate fiscal constraints.

2. Wealthy Individuals: Benefit from the ability to accumulate debt and invest in assets such as real estate, commodities, and stocks, leveraging the fiat system for wealth accumulation.

3. Financial Sector (Banks): Profit from interest on loans, fees for services, and investments. Banks exploit fractional reserve lending to expand the money supply and generate revenue, often with little accountability.

Central Bank: Exercises control over the money supply, influencing interest rates and intervening in financial markets to maintain stability. However, it operates under government oversight, aligning its actions with national economic policies.