What really backs up US dollar?

[Deleted]

Gold. We all need to trade our money in for gold lol.

[Mrs. ChanandlerBong]

I don't think it's gold anymore. I found this www.federalreserve.gov/faqs/currency_12770.htm

 Federal Reserve notes are not redeemable in gold, silver, or any
other commodity. Federal Reserve notes have not been redeemable in gold
since January 30, 1934, when the Congress amended Section 16 of the
Federal Reserve Act to read: "The said [Federal Reserve] notes shall be
obligations of the United States….They shall be redeemed in lawful money
on demand at the Treasury Department of the United States, in the city
of Washington, District of Columbia, or at any Federal Reserve bank."
Federal Reserve notes have not been redeemable in silver since the
1960s.


The Congress has specified that Federal Reserve Banks must hold
collateral equal in value to the Federal Reserve notes that the Federal
Reserve Bank puts in to circulation. This collateral is chiefly held in
the form of U.S. Treasury, federal agency, and government-sponsored
enterprise securities.

I asked DH, he says we went off the gold standard in 1971.  So now, what backs up our money is the Federal Reserve. Which isn't very reassuring to be honest.

[Booze Raccoon]

pubes

[MrsAggie]

May 2, 2013 22:49:46 GMT -5 Booze Raccoon said:

pubes

This is pretty accurate.

[Deleted]

Faith and the Chinese government.

[TrickyBob]

May 2, 2013 22:49:46 GMT -5 Booze Raccoon said:

pubes

Well aren't you mature. I don't think you've contributed anything to ML since you've started posting. 

[BunnyMacDougal]

A run on banks or a Chinese margin-call are very real dangers as things are, amiright?

[Booze Raccoon]

May 2, 2013 22:51:02 GMT -5 TrickyBob said:

May 2, 2013 22:49:46 GMT -5 Booze Raccoon said:

pubes

Well aren't you mature. I don't think you've contributed anything to ML since you've started posting. 

I must have missed the sign-up sheet.  I'll bring paper goods.

[Deleted]

The sales from the twilight series.

[TrickyBob]

May 2, 2013 22:53:41 GMT -5 Booze Raccoon said:

May 2, 2013 22:51:02 GMT -5 TrickyBob said:

Well aren't you mature. I don't think you've contributed anything to ML since you've started posting. 

I must have missed the sign-up sheet.  I'll bring paper goods.

Don't you dare bring any of that flimsy shit that leaks! 

[Deleted]

Oh. I see this isn't a joking kind of thread.

Carry on then.

[VeryViolet]

May 2, 2013 22:50:49 GMT -5 cville said:

Faith and the Chinese government.

This. Basically what I remember from a few college econ classes is that all that backs the value of the dollar is us saying "yes this is worth something." All economies are based on is faith and dreams.

Just a note while I was a business major I struggled with Econ.

[TrickyBob]

May 2, 2013 22:56:20 GMT -5 mofongo said:

May 2, 2013 22:54:36 GMT -5 TrickyBob said:

Don't you dare bring any of that flimsy shit that leaks! 

For cripes sake, at least bring a fucking casserole!

LOL. I'll have you know, I have made one or two since that thread. 

[adhdfashion]

Nuclear Weapons