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what is the deal with fiat currency? how does it arise and where does it attain its exchange-value? i'm currently participating in the hexbear capital reading group and in chapters 2 and 3 marx goes heavily into the way that gold standard money becomes exchange-value. fiat money is discussed only a little, and somewhat dismissively, although as far as i can tell none of the actual theory of the time precludes it from existing. are there any texts that go into it in detail?

important context: https://lemmygrad.ml/post/10346359/7603669

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[-] Faux@lemmygrad.ml 9 points 2 weeks ago* (last edited 2 weeks ago)

A virtual resource controlled by a government that's supposed to support exchange of goods ans makes it convenient.

I'd argue that no backing and ability to control its value is an advantage over representative currency. As long as government is working in the interest of the people of course.

We should just remember that digits with arbitrary value that nowadays don't even have to be printed are not a material resource. Having money doesn't secure anything, its volatile yet effective value emerges from the possibility to exchange it for material resources in given moment.

this post was submitted on 20 Jan 2026
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