Re: What is Money anyway?
Most money today is what is called "fiat money." Just as you said, everyone has to believe in the government's decree that money is legal tender for this type of fiat money to be worth anything. If a (heaven forbid) worldwide catastrophic event were to destroy much of the world, throwing it into a state of true anarchy, money wouldn't really be worth much, if at all.
Now, if you had money that was tied to something that was actually useful, then it'd be different. For example, what if we had a country where currency was canned food. Then, that 'currency' has a real use other than as currency, and would no longer be termed "fiat money," since it would have value regardless of whether a governing body deemed to to be legal tender or not.
If I'm completely wrong, then blame my past economics teachers.
-RMJ
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