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"Although" is not the right word here -- you're supporting my point. :) The requirement to pay taxes in USD is the primary "inherent value" which makes that pa
by fexl 13y ago
"Although" is not the right word here -- you're supporting my point. :)
The requirement to pay taxes in USD is the primary "inherent value" which makes that particular commodity circulate as money. The "inherent value" is to increase the odds that one may continue living outside of a cage.
When I call that value "inherent", I am obviously speaking very loosely and tongue-in-cheek. Remove the threat of force, and USD paper cash has no significant value -- it's too rough to use as toilet paper and doesn't even burn particularly well in the winter. It is durable enough to function as wallpaper, though with a rather busy and avant garde retro design.
Combine that dynamic with the Mandrake Mechanism described in "Creature", and you have a very powerful monopoly fiat money, consisting of cash and bank "deposits", useful for financing horrors like World War I, the Marxist overthrow of the Kerensky government, endless bailouts of banks and corporations throughout the '70s, '80s, '90s, and '00s, and a litany of other ridiculous, juvenile schemes.
It is the monetary inflation, produced by the central bank buying government debt (i.e. a promise to tax), which gives governments most of their "spending money". Taxation itself merely gives people a reason to accept the USD in the first place, and also serves as the principal means of social engineering.
When you look at it that way, taxation and inflation are seen as two mutually recursive functions, whose fixed point is the gun.