Jehu: "LK gives what I think is incontrovertible evidence for this view: Fiat contains only a vanishingly small quantity of living human labor:
Lord Keynes (?!): "[The] amount of labour needed to create $1 of fiat money is hardly different from that needed to create $1 million or $100 billion (namely, a few extra key strokes). Yet obviously one dollar of high-powered money and $1 million buy commodities with vastly different quantities of abstract socially necessary labour time in Marx's sense of this concept. You cannot explain the exchange value of fiat money by appealing to the abstract socially necessary labour time needed to create it."
A few years ago, to illustrate the logic of a fiat money economy, Prof. Bill Mitchell offered the following example ("A Simple Business Card Economy", Mar 31, 2009)