Quote:
Originally Posted by OrangeBlossomBaby
Why do you have to put your full faith and/or trust in either?
I don't have full faith in the US Government. But the US Dollar is the money I'm able to use here in the USA to represent my trade of goods and services. So I'll use it. Even though I don't trust it to remain stable indefinitely.
In fact, I know that it's not a stable commodity. It fluctuates. And THAT - the fact that it fluctuates - is really the only thing I have full faith and trust in.
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Correct.
What requires us to use USD as a medium of exchange is the fact that tax remittances must be made only in that medium, at gunpoint. Failure to comply will land you in prison.
Other mediums of exchange might be useful, but as OBB points out,
both parties must agree to use said medium. When you have 325 million people and countless commercial entities constantly exchanging, it's really tough to find a common currency.