Fiat money, the definition

I have a piece of paper rock dried mud, It will pay for 1/5 of my  purchases at the local hardware store, and the value is determined by fiat, I assume. I made no assumption that fiat means central bank, and as you can see, paper has nothing to do with it.

So why do we hear fiat associated with central banking?  Mises, the socialist, assumed that all money is central bank money.  Another of the incorrect assumptions that plague the semantics of banking.

Fiat and central banking are separate issues, keep them separate. This is another case where the economist adopts jargon that makes him appear fraudulent. Fiat, the word, needs to be forgotten by bankers and returned to the dictionary.

In sandbox we do it correct, we start with competitive monetary systems and never  leave the framework.  We stick with chapter one of econ 101, competition with free entry and exit. 

Chapter two suddenly insists that all monetary systems are central bank which is false. That assumption was the cheat inserted by MIT under government orders. It was done because we just had our generational default in 73 and government needed to fake a 'This time is different' formula.

We are not continuing the MIT stupidity this time. We are saying, no time is different, we always default. And we intend to default in smaller amounts less often, a small innovation. In other words, too late we figured it out before Trump could buy off another batch of MIT stupids.