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.
Obviously it's working and we don't have vaults of gold for all our dollars anymore...
All of them, except for the ones in trade blocks where there is an extra step, like the Eurozone
The US is big and powerful enough that the "promise" is enough
If governments collapsed entirely, falling into total anarchy, people could still use the same damn physical paper as a trade medium, ie. a currency
the only reason we use fiat currency is because it is less volatile
that's about it
under anarchy it would return to being as volatile as any other currency
They could try and use it, but I would expect the dollar to have some serious problems if the US fedgov fell
irrelevant
they could use it just the same
whatever value it has, is because people believe it has value
The bond holders wouldn't get their coupons or redemption, so that would b ea major problem
why wouldn't they?
no more fedgov
who is going to pay the bond coupons?
idk, that's a logistics problem
I wonder what point you're trying to make @✨Skolander✨?
@Dr.Cosby that none of you fundamentally understand what currency is.
