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Modern fiat currency is backed only by debt. The fact that money can be backed by debt implies that there agents have a sufficiently sophisticated ability to ju
by MsMowz 9y ago
Modern fiat currency is backed only by debt. The fact that money can be backed by debt implies that there agents have a sufficiently sophisticated ability to judge trust of other agents. It's not extremely relevant that trustworthy behavior is enforced by the state.
- abritinthebay 9y agoThis is also not true. GDP, long term economic prospects (of which debt is a part), and political stability are all major factors in fiat currency value. This is not as bad as the original oversimplification but it’s a pretry incorrect one by itself.
- havetocharge 9y agoWhat about the power to tax? All governments operate within the fiat currency framework.