Fifty years have passed since President Richard M. Nixon changed the U.S. money system by suspending the conversion of U.S. dollars into gold and allowing the rate to float.

Eliminating the gold standard and moving to the floating-exchange-rate system created grave concerns. Perhaps the most interesting point or lesson since the change is that the U.S. dollar has been dominant in the world, and more robust than initially expected. Even in retrospect, most experts would have doubted that the system could survive for this long.

We now have a money system referred to as a fiat system, which the government designates as legal tender. Some definitions may help.

Fiat money has no intrinsic value, while legal tender is any currency declared legal by a government. Governments can issue fiat currency and make it legal tender by setting it as the standard for paying debt. The benefit of fiat…

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