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What 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 gover
by mizzao 4y ago
What 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.