"Fiat currency is sustained by our obligation to pay taxes in it..." I often see this argument, but it neatly ignores, for example, the Argentine Peso, which i

"Fiat currency is sustained by our obligation to pay taxes in it..." I often see this argument, but it neatly ignores, for example, the Argentine Peso, which is losing 46% of its purchasing power (last few months, annualized) vs. US Dollars (or tomatoes, or cars, or whatever you want, on average), yet taxes are just as high as they ever been (higher, in fact: 35% tax just implemented on all cars above a certain threshold, for example). So where is that value-sustaining-tax effect I hear so much about? Come to think of it, in 1989 when the Argentine Austral's value went to essentially zero (1-1 with the USD to 1-10,000 in a little over a year), taxes weren't low... so what happened? In fact, you could still pay taxes just fine with all that worthless paper with a bunch of zeros on it. Why didn't taxes and legal tender give it value?