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RE: Peaceful Revolution: A principled rebel
The only difference between these two notes ... is that one is backed by the full faith and credit of the United States government (for whatever that is worth) and if you try to copy it, the Secret Service will kick down your door and carry you away for a long time, and you can keep as much as you want of the other without being taxed any differently.
There seems to be a slight flaw in your thesis.
Secret Service?
Odd name.
Secret from who? What service do they provide? To who?
Well something based on confidence has no actual value. Seeing as fiat money can be anything they are only different via an illusion.
Are you actually claiming that having armed people drag you away for forging USD is an illusion? I never knew illusions could be so dangerous!
Did i say that? Stop being a straw man king. Because violence somehow values fiat money? It has equal commidity value as monopoly money. Its backed by cobfidence and so could monopoly money lol
You missed the connection. Sorry for being unclear. When you say it is "based on confidence" you are incorrect. The Secret Service taking action to protect the integrity of the currency is much more concrete than that. Likewise laws and institutions (such as the treasury department) that can take action to prop up the money in hard times ensure that it is not simply "based on confidence." There are lots of people and structures that go to a lot of trouble to give fiat money a stable base. Whether or not they are effective is another story (I don't think they are). But if you want to have a discussion, you should consider those relevant facts.