If we paid other countries paper money. In all reality it is really just paper. So what do we pay other countries when there is a debt to be paid off? Commodoties, labor, what???
2006-11-09 13:08:17 · 6 answers · asked by Albert J 1 in Social Science ➔ Economics
The paper money is only for us to use, governments pay with trade and with bank transfers, no one ever see the money, sometimes they use precious metals, and sometimes comodities..☺
2006-11-09 14:15:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Up until about 1975 we paid our debts with gold bullion. Fort Knox was full of 100 lb gold bars stacked on pallets. The pallets were moved around in a huge warehouse according to what nation we owed or visa-versa. President L.B.Johnson spent so much money on the viet Nam war and his goofy "great society", that there was not as much gold in Fort Knox as there was dollars in the world. But no one knew we ran out. France was the first to know and they turn in all there dollars and demanded gold. By the time the world found out (Nixon was pres. and had to take us off the gold standard) that there was not enough gold in Fort Knox to back up the paper money some smart Americans convinced the Saudi Arabians to take only dollars for payment of oil. France and other European countries do not have any oil in there countries so they came running back to Fort Knox with gold bullion in hand wanting to trade the gold for paper green backs so they could buy the much needed oil. That same condition exists to this day in 2006. Ergo; our money is no longer backed so much by gold as it is backed by oil. We pay our nations debts with green backs that have over the years became a world standard.
2006-11-09 23:33:57 · answer #2 · answered by HeyDude 3 · 0⤊ 0⤋
The private banking cartel known as the Federal Resrve Bank simply prints more money. This causes the value of the money in circulation to go down, including yours, resulting in inflation so, the American people assume the country's debt and payment with less purchasing power and a decrease in their standard of living.
2006-11-10 14:49:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No, we'd run the printing press and send them even more paper money, or wire-transfer them money from a US bank (for which paper money would be deposited). There's nothing supporting it.
2006-11-09 21:12:55 · answer #4 · answered by urbancoyote 7 · 0⤊ 0⤋
Just paper, we are not on the gold standard anymore. It also causes inflation.
2006-11-09 23:17:25 · answer #5 · answered by Anonymous · 0⤊ 0⤋
yes, countries use Commodities - services.
Commodities like Rare metals, natural resources, energy...etc.
Services like donations, foreighn investments..etc
2006-11-09 21:14:10 · answer #6 · answered by mark k 3 · 0⤊ 0⤋