[dcolkitt]

I agree that being backed by a government carries weight. Largely because tax liabilities are denominated in the home currency, which creates a persistent demand for the currency.

But it's silly when people bring up the army or military when it comes to the USD or other fiat currencies. As if the only thing keeping the dollar valuable are carrier strike groups threatening people around the world. If military spending was cut in half, I guarantee you the dollar would be just as valuable.

China, Russia and North Korea all have formidable militaries. Their currencies carry very little weight outside their borders. In contrast the Swiss Franc, Swedish Krona and New Zealand Dollar are all considered ultra-hard currencies despite those countries having little to no ability to project force around the globe.