The main reason every empire has fallen economically is because of the growing greed of the government. The things that normally cause the fall of every great empire are excessive spending on war as well as public works. Furthermore, the government debases the empire's money supply. Eventually, this leads to the introduction of fiat currency in which there is no equivocal backing. This fiat currency is continuously expanded at the convenience of the government.
gold and silver or is backed by it. Usually, there is a workable taxing system and in some cases, there is free-market. The ancient empire of Athens and the modern empire of the United States are both excellent examples of the seven stages of empire.
Athens monetary issues all started and continued to amplify as the war between them and Sparta ensued. Before the war, Athens had both a free-market as well as a working tax system. Athens was the first empire to accomplish both economic achievements. Their money consisted of primarily gold, although they used silver as well. Both were minted into coins.
The U.S. established the Federal Bank in 1913 which distributed currency that could be exchanged for money or, in other words, gold. The majority of the gold was kept in the United States Treasury and could be redeemed at any time using paper currency as a claim check.
