The US Dollar is backed by "the full faith and credit of the US Government" of which the military is only a part. Much more relevant to the value of the dollar is the strength of the US economy, the trustworthiness of the US central bank, and the willingness of the US government to pay honor the bonds it has issued.
The value of the bonds, and the value of the US dollar are determined by market forces first, and the willingness of the US central bank (The Federal Reserve Bank) to prop up the currency. The US Military has nothing to do with it. -- Charles On Thu, 30 May 2019 at 10:19, Srini RamaKrishnan <[email protected]> wrote: > On Thu, May 30, 2019 at 7:30 AM Udhay Shankar N <[email protected]> wrote: > > > > A follow up to the follow up (message left unedited below for context) > > > > > https://www.wsj.com/articles/the-dollar-powers-american-dominance-rivals-are-building-workarounds-11559155440 > > The US Dollar is backed by the might of the scariest military in the > world. It may not be the gold standard, but in fact it is even better. > Unlike the gold standard, it cannot be easily faked. The rest of the > world only has the word of any government that the said amount of gold > exists. These are not open to destructive inspections, and it is long > suspected that most gold reserves have some amount of fake bars. > > http://news.bbc.co.uk/2/hi/africa/7294665.stm > > https://www.businessinsider.com/tungsten-filled-gold-bars-found-in-new-york-2012-9?IR=T > https://www.cnbc.com/id/43391588 > > https://www.kitco.com/news/2017-08-24/Germany-Gets-Its-Gold-Back-From-The-Fed-And-It-s-A-Big-Deal.html > > The US can ignore international laws (and it does ignore them almost > daily) only so long as international trade depends on the Dollar, and > ignoring laws is pretty crucial to the way the US has done business > for decades now. Given this I don't see the handover of trade power > happening without entertaining the temptation to lob a few nukes. > > Rather than the PetroDollar, a more accurate appellation is the NukeDollar. > >
