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> What actually maintains the value of the US dollar is the long dick of the US government through the Fed obviously but also foreign and domestic policy. It's
by Aunche 4y ago
> What actually maintains the value of the US dollar is the long dick of the US government through the Fed obviously but also foreign and domestic policy. It's the ability to project military power anywhere on the planet.
What actually maintains the value of the US dollar is that it's actually used to exchange goods and services. If you have $100, you have a reasonable idea of what it can get you: 20 Big Macs, 2 pairs of jeans, or 1 hour of work from a Bay Area SWE. The value of the dollar isn't just backed by the government. It's backed by everyone who offers goods or services with exchange for a predetermined quantity of dollars. This gives actual currencies momentum that cryptocurrencies simply don't have.
- trinovantes 4y agoAren't there laws that require businesses to accept USD as payment?
- mizzao 4y agoWhat actually maintains the value of the US dollar is the demand that is created by how it's the only thing you can use to pay the taxes you owe to the US government. Even if no one cared about dollars for anything else, this would still give it value.
- Aunche 4y agoThat the government demands US dollars is completely orthogonal to the value of the dollar. They can demand a weaker dollar or demand a stronger dollar. Argentina demands Argentina pesos, but their currency is embarrassingly weak. Their attempt to increase demand to their currency by taxing exchanging to foreign currency predictably has no nothing to control inflation.