On Mon, Oct 31, 2011 at 10:33 AM, Jim Devine <[email protected]> wrote: > me: >>> Could the state back its paper money with sand, for example? > > Sabri: >> Sure, why not? What does the US back its money with now? > > its military might, etc. >
I seriously doubt that the PRC is hoarding dollars instead of say, yen because they are afraid of military retaliation. The dollar has some important institutional advantages and all the force of inertia of a long-established standard that has nothing to do with US military might. -raghu. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
