Quote Originally Posted by Chex View Post
Where does the purchasing power of your cash come from?
Purchasing power comes from the number of units produced, pumped into circulation versus the goods and services in the economy.
The purchasing power is elastic. This is true even with metallic money.

Money, in whatever form, is still subject to free market forces as well as demand (or lack thereof).

Quote Originally Posted by Chex
It comes from society believing that pieces of paper with numbers printed on them backed by nothing is real money, which according to the United States Constitution, it is NOT."
Money is a creature of the law ultimately.
Money is whatever the political power holder deems it to be.