fiat currency is only worth something if the people want it to, and currently everyone wants it to
Do you have evidence to back up your claim?
Last I remembered, the China and Australia trade agreements dropped the USD as the currency for trading to YEN.
my evidence is that you wouldnt have to ask those questions because theyd be factual, but since you asked them, I gave you an answer, which is its own evidence
There is more money in this world than there is 'physical' money. This means that everyone cannot be in possession of their money at once because the banks do not have said money. However, when we work and get paid a number increases on our bank account. Did the bank get the money? No. Does everyone believe they got the money? Yes.
As long as people believe the bank has money and the bank gives you a positive number on your bank account you can spend money yourself. What we're transferring when we pay with credit or debit cards isn't really money but the assumption of money. E.g I pay $30,000 for the sickest super computer, if I 'have' $40,000 on my bank account that means my bank account is 'worth' $40,000 not that the bank has $40,000 stored in physical money.
The general assumption that the seller has money will be increased by $30,000 and that I have money will be reduced.
I realize you might think this is grotesque in my portrayal but this is all it really comes down to. America can still function because their investors think it is still worth it. America can function because it plays a part in the global economy. Pulling out all of your money from America is a bad idea because there's no way you're getting all your money back - it's better to use the debt as leverage in global political affairs. _________________
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