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by iSnow 4604 days ago
>The USD has had zero intrinsic value since the end of the gold standard.

That's not entirely true. As long as it is the only legal tender in the US and taxes are paid in USD, it has intrinsic value.

1 comments

No. Precious metals have intrinsic value. Fiat money does not. The fact USD is legal tender makes it legal tender but that's it. It does not give it intrinsic value. (Or, pedantically, the paper the USD is printed on has some intrinsic value, about $100/ton.)

"Fiat money, such as paper dollars, is money without intrinsic value: It would be worthless if it were not used as money." -- from Principles of Economics, Volume 1, http://books.google.com/books?id=oRgQ2goeFzwC&pg=PA659&q=fia...

I don't mean to be rude, but I am always surprised by discussions about money. They reveal that people have no idea what money is and what gives it value.