I swear talking to Americans about economics is nothing but hell.

Taxes are a major part of the conversation, thats what gives the dollar its root demand

The fact that Americans need dollars to pay taxes is what 'backs' the dollar

they also need to pay rent, food and other shit.

They do, but they can't be compelled to buy that the way they can with us dollar denominated taxes

Moronic answer, that doesn't actually understand the difference between fiat money and the trade medium is.

in this case, the fiat money that is the US dollar is also the world's preferred trade medium

The government doesn't care how you pay the taxes

It sure does, it requires us dollars

if you gave them 1000 euro they would accept it.

they would not

they will just convert it and charge you the fee

```Note: Payments of U.S. tax must be remitted to the U.S. Internal Revenue Service (IRS) in U.S. dollars.```

that's the standard response

cuz they dont wanna have to deal with converting the currencies

Again, demand for US dollars to pay US taxes is what 'backs' the us dollar

we are not talking about the fucking demand

you absolute moron.

that is your answer @borealice

you don't understand the question.

You could just avoid paying taxes, what then, does it suddenly hold no value?

I might, but millions of Americans do not avoid paying taxes, primarily because of their paychecks having automatic deductions

not to mention corporate taxes

irrelevant fluff.

the core issue is what gives the dollar, the currency, its value

Taxes

do you understand the difference between the dollar as a currency, and a stack of printed out 100 dollar bills?

I do

what's the difference

enlighten us, humor the chat

a stack of 100 dollar bills would be physical objects. the dollar as a currency is an abstraction that relates to the system as a whole

what about what the 100 dollar bills represent to the person holding onto the money?

What if that person, like you, thinks "I can use this to pay taxes"

They certainly could

then is it equivalent to the currency?

since that's apparantly all you care about

I swear americans have this odd obsession with taxes no other nation has.

Since millions of American individuals and corporations owe taxes is US dollars, the dollar has a consistent demand floor

The dependability of the fed collecting the taxes every year is what backs it up. What do YOU think backs it up? @✨Skolander✨

It's not just America, that's most fiat based countries

No, not a single fiat based country functions like that.