Quote:
Originally Posted by SkinnyPupp
What's the intrinsic value of any currency?
Burn it for heat? Except you can't even do that now with the plastic bills  |
our currency is backed by the government...(in the past we had the gold standard so you can go to the government and exchange it for gold...that basically gives it a guarantee intrinsic value.)
obviously we don't have the gold standard anymore...but our economy and government is a lot more stable and established now...the currency is still guarantee by the government in the sense that the government stipulates its currency is a legal tender within its border...and they can enforce it with their rules and power.
basically, the government's power and worthiness give the currency its intrinsic value