[Spivak]

But isn't 'hover around the same value long term' maintaing the purchasing power? I guess if you interpret the marketing as 'will literally always be worth $1.00' you'll be disappointed but it's weird to take that interpretation when it's not really attainable for anything that isn't a US dollar.

[zodiac]

It's not even technically attainable for USD. If China places huge market orders for a basket of commodities with USD, USD would lose purchasing power wrt the basket for a short amount of time (I think a few seconds is possible).

[justincormack]

The USD is not pegged to commodity prices.

[zodiac]

You're right - what would you say it is pegged to?

[splintercell]

Literally nothing.

[zodiac]

Then what does the feds 2% interest rate target? Nothing?

[splintercell]

The fear of Inflation. But USD is not pegged to anything.