rakenan wrote:It's not enough to be the most powerful society locally to get people to trust your fiat money. To trust your fiat money, people have to trust your country. They have to trust that you will not spin up the printing presses to devalue your debts.
Well, yes and no...
Once government is involved, money gets a lot more complicated. There is more to it than "trust in the country" and "printing presses".
First, there is the concept of "legal tender". For example, in the U.S. today, you can sign a contract that requires payment in gold... But U.S. courts will refuse to enforce it
. Like it says on the bills, they are good "for all debts, public and private". So if you want the protection of the U.S. legal system, you have no choice but to accept U.S. dollars.
Second, fiat money is needed to extinguish tax liabilities. (The IRS does not accept gold.) Some even believe that this is the only
thing giving it value ("Chartalism"
Anyway, as far as money is concerned, the "Desert Rangers" do not function as a government in any meaningful sense. When we talk about "money" in Wasteland, we are talking about something fundamentally different from the "money" we use. So any argument about one based on the other is highly suspect.