Yup. Fiat gets its value because it’s the only way you can discharge your liabilities to the state. That’s what the Brits did in South Africa, imposing a ‘hut tax’ that could only be paid in British currency.

https://en.wikipedia.org/wiki/Hut_tax

Reply to this note

Please Login to reply.

Discussion

it's arguably what USA did with Saudi Arabia and the petrodollar also

Yup. Oil in the international market could only be bought and sold in USD.