4 ms·

We have a fiat currency. The Government creates “money” whenever it pleases. The money is “Backed by the full faith and credit of the United States”. I complet

We have a fiat currency. The Government creates “money” whenever it pleases. The money is “Backed by the full faith and credit of the United States”. I completely agree that in the long term this is completely faulty and just helps to exacerbate the underlying causes of economic crisis. But our government (typically) does not act in long-term interests. We as a people do not hold our politicians accountable.

TheSoftwareGuy 7y ago
>The money is “Backed by the full faith and credit of the United States”. I'm pretty sure its treasury bonds that are "Backed by the full faith and credit of the United States". Dollars are backed essentially by what you can buy with them.
- gen3 7y ago
  The US dollar was at one point backed by a gold and silver standard, meaning that you could always go redeem the cash for a specific amount of the metal. After the Great Depression the US moved away from the standard, backing the money with the faith in the US government. This is why each note has “Backed by the full faith and credit of the United States” printed on it. https://en.m.wikipedia.org/wiki/History_of_the_United_States_dollar https://en.m.wikipedia.org/wiki/History_of_the_United_States... https://www.reference.com/business-finance/backs-up-currency-united-states-today-17abf1ea677c41d5 https://www.reference.com/business-finance/backs-up-currency...
  - TheSoftwareGuy 7y ago
    >This is why each note has “Backed by the full faith and credit of the United States” printed on it. No they don't. I just checked three different bills in my pocket (a $1, a $10 and a $100) and none of them say this. They say "This note is legal tender for all debts public and private" but there is absolutely no reference to "the full faith and credit of the united states"

4 ms·

We have a fiat currency. The Government creates “money” whenever it pleases. The money is “Backed by the full faith and credit of the United States”. I complet

by adaisadais 7y ago

TheSoftwareGuy 7y ago
>The money is “Backed by the full faith and credit of the United States”. I'm pretty sure its treasury bonds that are "Backed by the full faith and credit of the United States". Dollars are backed essentially by what you can buy with them.
- gen3 7y ago
  The US dollar was at one point backed by a gold and silver standard, meaning that you could always go redeem the cash for a specific amount of the metal. After the Great Depression the US moved away from the standard, backing the money with the faith in the US government. This is why each note has “Backed by the full faith and credit of the United States” printed on it. https://en.m.wikipedia.org/wiki/History_of_the_United_States_dollar https://en.m.wikipedia.org/wiki/History_of_the_United_States... https://www.reference.com/business-finance/backs-up-currency-united-states-today-17abf1ea677c41d5 https://www.reference.com/business-finance/backs-up-currency...
  - TheSoftwareGuy 7y ago
    >This is why each note has “Backed by the full faith and credit of the United States” printed on it. No they don't. I just checked three different bills in my pocket (a $1, a $10 and a $100) and none of them say this. They say "This note is legal tender for all debts public and private" but there is absolutely no reference to "the full faith and credit of the united states"