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While a distinction can be drawn between real economy and money or financial economy, currencies, like the US dollar, are defined as legal tender by the governm
by rz2k 10y ago
While a distinction can be drawn between real economy and money or financial economy, currencies, like the US dollar, are defined as legal tender by the governments that are backed up by significant real economies.
Official currencies can be devalued relative to real economic production, either intentionally or through mismanagement, but they are not an act of faith like betting on precious metals that have long since been deprecated as official currency.