4 ms·
> The Fed does NOT hold stocks. Correct, this was my mistake. > And dollar denominated bonds as backing for the dollar are basically a short-circuit. The dif
by OscarCunningham 6y ago
> The Fed does NOT hold stocks.
Correct, this was my mistake.
> And dollar denominated bonds as backing for the dollar are basically a short-circuit.
The difference between dollars and dollar-denominated bonds is the time delay. Suppose you issue 100 kineyCoins and give them to me, and we have a contract that I have to give them back to you in a year. Then those coins will have value to third parties, because they know that if they hold them then as the deadline approaches I will have to buy those kineyCoins back in exchange for whatever those third parties value.