David Hillary wrote:

>Central banks hold reserves of assets sufficient to pay all their
>currency liabilities and all their deposit liabilities. This can be
>seen from their balance sheets.
>
Is this a joke?

The assests the central banks hold are called I.O.U.'s.  I don't know 
about Australia, but in the United States the dollar is backed by debt. 
 A dollar is nothing more than debt token.  It is not even a promise to 
pay any more.

Dollars are only worth what people are willing to exchange them for. 
 The dollar is accepted worldwide because of the stability of the US 
Government, not because it is actually worth anything.  When the US 
falls into a deep recession the value of the dollar will not be much. 
 That is why the Fed is scrambling to try to stop it.



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