Where does the USD get its value?

Answer 1

Andy,
I don't think you realize how important a question you have asked. You are obviously much more intelligent that most people, because most people don't even think to ask.

The short answer is nowhere, yes Andy, the United States Dollar has no intrinsic value. The USD is a "fiat" currency, that is a currency only by government decree. The only reason you will take it, is because others will take it from you. When that stops (history is replete with examples of this) the money won't be worth the paper it is printed on.

The U.S. Constitution gives Congress the power to "coin money and regulate the value thereof" Instead, they have given the authority that we gave to them to a private business. The federal reserve bank. This private bank is as "Federal" as is Federal Express. Look in the white pages, it isn't even listed with other government offices.

The worst part of all of this is that the federal reserve creates money out of nothing (which destroys the value of our money) but then loans it back to us at interest!

Bravo for your curiosity! Further reading is available below

Answer 2

Are you referring to the United States Dollar? It is an excepted unit used for trade. It has nothing actually backing it that gives it "Value". Its value comes form the fact that if I get some dollars for goods I have or labor I perform, I will be able to trade it for other goods or someone else's labor.

Answer 3

I believe it's actually a relatively simple formula involving the GDP and the total amount of currency in circulation. It's based on the fact that all 'electronic money,' ie. the stock market, bank accounts, etc. has a physical representation somewhere. They've stopped using bullion though.

Answer 4

its like a Ponzi scheme

everybody thinks its valuable so it is

green and white paper really

Answer 5

BY THE STORES

Answer 6

faith