[Stealthisbook]

He doesn't seem to recognize that the government debt is backed by not only the entire productive capacity of the nation, but also the willingness of creditors to tank the world denominated currency. It's possible that some political fights could temporarily sway the market but it would take a broader societal collapse to actually kill the dollar.

[specialist]

Yes and: The US dollar is worth as much as the US military says it is.

[panick21_]

That's not how markets work. And the US military does not control the world either. The US military couldn't even the value of currency in Baghdad.

[specialist]

Oh. My bad. How do markets work?

[panick21_]

People can meet anywhere anytime in private and trade whatever they want and negotiate and that determines the price. And this can easily happen in any country not controlled by the US.

So the US military opinion on what the doller should be worth is pretty much irrelevant.

[specialist]

Why do trading partners have to hide their transactions?

[panick21_]

What are you talking about? Nobody 'has to' do anything. The point is they can. All the way from individuals up to states.