Since the value US dollar is no longer based on gold, what is it based on?
by 
Phil in the Blank...backandtotheleft
ANSWERS: 11
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basically nothing. The government has even printed their own money at one point just because they needed it.
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when did that change? I thought that is why the price of gold is at its highest in years. The US government needs gold reserves to produce paper money?
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It's based on whatever the Federal Reserve WANTS it to be based on. What the American people don't know, is what makes us the American people.
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now a days i think it is based on GREED.
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The strength of the American economy.
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The US dollar is based on the US economy as a whole compared the economies and currencies of other major economic counties.
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Its all based on LIES. To the tune of trillions of dollars worth. Its quite a whopper.
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Its called fiat currency, meaning its value is whatever the government says it is. The Fed is printing money 24/7 which is just one reason why inflation is getting worse.
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there are no answers here. its all in the numbers? what? what is it based on? does anyone know the answer to that question? if not don't say something. it makes it look like there is the illusion of an answer. asking what currency is based on is like asking why are we here? no one knows. well maybe someone. but not anybody you are likely ever to talk to in your whole life. saying its based on the economy doesnt make any sense cuz the economy is based on the dollar value which brings us back to the question still with no answers. no one knows what really moves a market. a million things contribute. stocks are just people gambling. everything in life is gambling. the ones with the best information tend to have better luck but not always. there are no guarantees. does anyone have a definitive answer? im guessing the dollar is based off of infinite forces that are unseen and unknown to mankind. call it god and the devil maybe. anyone else got some better ideas?
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The US dollar has floated on the world market ever since Nixon devalued it twice during his term! When strong economies support the dollar we benefit, when we support economies whose currency is worthless like israel then we harm ourselves!
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There is a good book that discusses this call the Origins Of Financial Crises by Dr George Cooper. Quite new. Gives a history (not a full history as such but more one which gets the main points across without floundering in the detail) of the money system. Look up Fiat Money and Bretton Woods as well. It is difficult to really give a full explanation with the limited scope here. Better probably to do some background reading first. Good question though.
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