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Klaralven

(7,510 posts)

5. They are sort of stable because the government requires people to use them to pay taxes

Reply to paulkienitz (Original post)

Wed Jan 19, 2022, 05:44 PM

Jan 2022

And the government can use them to buy goods and services. And the government can require debtors to accept them in payment of debts by creditors.

The government can do this because it has political power.

And "Political power grows out of the barrel of a gun."

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7 replies

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why fiat currencies are stable [View all] paulkienitz Jan 2022 OP

They are as stable as the government that backs them. fescuerescue Jan 2022 #1

Out of curiosity (I'm not disputing what you're saying), Gaugamela Jan 2022 #2

I think the answer to that question would have to be determined by trial and error methods paulkienitz Jan 2022 #7

Love the topic YP_Yooper Jan 2022 #3

Voltaire. roamer65 Jan 2022 #4

They are sort of stable because the government requires people to use them to pay taxes Klaralven Jan 2022 #5

modern monetary theory explains that the value of the fiat dollar is maintained rampartc Jan 2022 #6