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They lost their force and power of taxation. It's actually a great example of how fiat currencies work. No "tanks", no taxes, no currency.
by s_q_b 10y ago
They 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.