Quote:
Originally Posted by minusonebit
Prove to me that the USD Dollar has now - or ever had - value and I will let you shove that statement up my ass. Its worthless fiat. Backed by "the full credit and faith of the United States Government". How much, exactly, is something that is backed by the full faith and credit of a country that is $7 trillion dollars in debt worth? Its not like the US Dollar is a TV or something, that you can use for anything other than buying stuff. It has no dual purpose. At least you can take a TV overseas and pawn it for what, 20 yen or something.
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Ever had been - when it was on the gold standard. Ok prepare the lube.
Currently - it is backed by the taxation of its citizens and the assets it controls. Not to mention we literally have trillions of dollars in uncollected loans to other countries. Most of which we have never bothered to try collecting back. Now we may be 7 trillion in debt. We do have enough resources and the like to keep any investor satisfied. Not to mention the citizens personal assets cause to keep in mind most of that is in debt fashion and could be collected by any company or country that purchased such debts.
There are very few dual currencies though. Nearly all are paper. Sure many may be backed by gold but good luck getting that gold. Then again gold is only valuable because we all agree that it is. Aside from select scientific and conductivity uses it otherwise is a useless metal that just happens to be slightly rare. Thus that places it in the same category as diamonds, which are immensely worthless outside of construction and drilling. Regardless though even with our dollar not based on gold, the nation itself does maintain a large reserve of gold in order to deal with foreign countries.