[Borodog]

I skipped that part, but it basically seems kooky to me. There is no way that "national productivity" can possibly "back" a fiat currency. How does one redeem one's fiat money for a fixed weight of "national productivity"?

But you don't need it. All you need to do to get out of the "infinite regress" of fiat money is to look back in history at what actually happened. One Friday afternoon you could redeem your paper dollars in for gold, but nobody had done this for twenty odd years, and the next Monday you couldn't. That's it. For a generation paper had been the money everyone was used to, so there was a well established purchasing power in consumer's minds. There's no problem at all.