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It’s still “trust” in both cases. One must trust the power of the government making the promise, or rather the global system of governance.
by igammarays 7y ago
It’s still “trust” in both cases. One must trust the power of the government making the promise, or rather the global system of governance.
- rohan_shah 7y agoExactly. If a substantial amount of people stop trusting the "promissory state money", then the inflation will be uncontrollable (or not controllable by the state) and the state won't be able to give anything in return of their promissory notes.
- doomjunky 7y agoIt's not that easy. The trust system only works between participants. Trust can't be enforced. The promise works with a third party. When two parties to lose confidence/trust into each other they can relay on a thrid party (the gov.) to enforce a prommise between two participants.