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by Mary Mary quite contrary on November 4th, 2009
Yes, it's a "fiat" currency with no real value. So yes, George Bush was able to print a few billion extra to finance his war.
http://en.wikipedia.org/wiki/Fiat_money
by Old School on November 4th, 2009
Most people are aware of this fact.
But so what?
by Im Alec has abandoned this account on February 1st, 2010
So are most currencies.
But it is actually backed at least by the fact that it is the only currency in which US Federal and State governments will accept taxes and pay wages. As long as such a huge entity has a need for the currency, there will always be a demand for it and hence a value of it. This then cascades out to the rest of the economy.
by Woodshill on November 4th, 2009
I knew it. I believe they dropped the gold standard when Nixon was President.
by three cousins from the 313 on November 4th, 2009
everyone who watched the south park episode on the dollar
by Nightwatchdog on November 4th, 2009
Yup! learned that back in economics class years ago.
by Sharona Life is a Tale Told by an Idiot on November 4th, 2009
That's just a little bit too simplistic.
by my2cents--Vote for Paul on November 4th, 2009
Yep. We got rid of the gold standard decades ago.
by ramnangunoori on December 19th, 2009
It is strong, because - world business uses it as a trading currencies for their transactions.
by hodgires on February 1st, 2010
indeed it is backed by nothing tangible, but it is surely backed by the whole worlds trust. why? because they all have pegged thier currencies to the USD. In this way the USD will always be the ulitmate until countries decide to finally unpeg thier currencies to the USD. Without the USD, the world economy will slow down, and in our modern world all countries want to continue to advance, so it is about growth and advancement. USD represents growth and advancement to the whole world, therefore they peg thier currencies to it....so in essence the confidence of the people is the new "gold" now..think about it. Gold is nothing if people did not place thier confidence in it as security...it is not rocket science that the USD is currently winning the currency wars, and thier weapon is simply the confidence of the people.
by ramnangunoori on December 19th, 2009
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