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I have, The US currency is backed by Trade.

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GnomeOfZurich   Wednesday, 04/13/11 05:07:36 PM
Re: hjaltismit post# 15
Post # of 21 
I have, The US currency is backed by Trade.

Germany had principal to pay back and when they did there currency became worthless.

The African country just printed money for no reason and plus they had nothing to support there currency. That is what happens when you print trillion dollar bills.

If I can remember germany did have alot of gold to back the currency, put they printed alot more fiat money then they had gold, this was back when every country in the world had gold to back there currency.

Times are different now, The US decided to back the dollar by trade because alot of countries were manipulating there own currency by claiming they had 5X-20X more gold then they actually had which wasn't fair for the dollar.

The US can print and print and print. Every country in the world holds our currency, the only way it will change is if China can support there own country with there own people like what the US has done.

Then if China does this then places like Austrialia will start buying the Yuan and not the dollar.

The US dollar is still the safest investment on the planet for countries to invest in, the reason why is because we can print our interest payments. There isn't a problem and this is coming from Freedman, Herman and Whittlesey that we will never pay back the principal and if a country says we have too, we can just stick our middle finger up and go to war and then all of sudden the debt or principal is erased.

There is also a balance when the FED starts to increase the rate because when they increase the rate this tightens the dollar which appreciates the dollar. The U.S treasury can then print more money to stablize the dollar from appreciating to much.

I also heard that the FED can increase the rate by 2% at any given time and won't have any affect on our economy.

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