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The currency can change quickly and the old stuff becomes quite worthless. Ask the Confederates.
by raddad 10y ago
The currency can change quickly and the old stuff becomes quite worthless. Ask the Confederates.
- s_q_b 10y agoThey lost their force and power of taxation. It's actually a great example of how fiat currencies work. No "tanks", no taxes, no currency.
- digi_owl 10y agoAnd thus you may say that every Euro using nation effectively gave up sovereignty when they adopted said currency...
- s_q_b 10y agoI would characterize it as more of a joint sovereignty pact, with all agreeing to accept a currency, and all in a mutual defense organization. It's not a pure federal government, but it's at least a confederacy. But, to address the elephant in the room, as one can see from recent events divorcing fiscal union from monetary union can have some very detrimental effects.
- mcguire 10y agoYou said it, we didn't.