Originally Posted by
Chex
The real question what's backing it? The full faith and credit of the U.S. Government. Feel any better now?
Since 1971, U.S. citizens have been able to utilize Federal Reserve Notes as the only form of money and for the first time had no currency with any gold or silver backing.
This is where you get the saying that U.S. dollars are backed by the "full faith and credit" of the U.S. Government. In other words, Nixon implied take our paper dollars or don't.
What does a dollar or Federal Reserve note represent now that gold and silver no longer back any of the currency printed in the U.S.?
From the Treasury; “Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything.
Redeemable notes into gold ended in 1933 and silver in 1968.
The notes have no value for themselves, but for what they will buy.
In another sense, because they are legal tender, Federal Reserve notes are “backed” by all the goods and services in the economy.”