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"Even fiat currency is backed by the full faith in government." What does this mean? Government won't give you another commodity in exchange for fiat. Is it fa
by stevedekorte 13y ago
"Even fiat currency is backed by the full faith in government."
What does this mean? Government won't give you another commodity in exchange for fiat. Is it faith that government will give you a dollar in exchange for a dollar?
- digitalengineer 13y agoExactly. The American dollar is backed ONLY by the good faith of the U.S. government. It is not backed by gold at any Federal Reserve Bank as it used to be until 1933. After 1933 privately held gold was confiscated and it's price in dollars revealed upwards.