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originally posted by: peck420
originally posted by: ScepticScot
The dollar isn't backed at the moment. Neither is any other countries currencies. Doesn't stop them having value.
The dollar is most certainly backed by 'something'. It is backed by the wealth of the nation. Resource wealth, human wealth, even ideological and cultural wealth.
If it was backed by nothing, we wouldn't know what debt is, as we would never have had it. We would have simply printed more money.
originally posted by: ipsedixit
A ton of debt is going to have to be wiped off the books and the majority of that debt (55%) is not held by China or Japan. It is held by American institutions and individual Americans.
originally posted by: Aazadan
More than that. 34% of US debt is held by foreign nations, about half of that is by China and Japan.
originally posted by: ipsedixit
At the current artificially depressed valuation of gold.