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<p>[QUOTE="yakpoo, post: 7672837, member: 18157"]<span style="color: #ff0000">Edited</span></p><p><br /></p><p>It's not a question of the cost of war vs. infrastructure. Fiat currencies (currencies not convertible to commodities such as Gold or Silver) are nothing more than Zero interest bonds and their "value" is directly proportional to the country's ability to repay their debt with something of value.</p><p><br /></p><p>The "value" of the Dollar is its status as <a href="https://www.investopedia.com/terms/l/legal-tender.asp" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.investopedia.com/terms/l/legal-tender.asp" rel="nofollow">U.S. Legal Tender</a>. In other words, if you want to do business with the U.S., you have to settle accounts in U.S. Dollars. That's what creates the value of a U.S. Dollar...the strength of the U.S. to project power and defend the business interests of it and it's allies. After WWII, that's what changed the world's reserve currency from the British Pound to the U.S. Dollar.</p><p><br /></p><p>A Chinese attack on Taiwan (a U.S. ally) without a significant response by the United States, would erode the value of the Dollar and strengthen the Yuan...(imo).</p><p><br /></p><p><a href="https://corporatefinanceinstitute.com/resources/knowledge/economics/fiat-money-currency/" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://corporatefinanceinstitute.com/resources/knowledge/economics/fiat-money-currency/" rel="nofollow">Fiat currency is not supported by any physical commodity, but <b>by the faith of its holders and virtue of a government declaration</b>.</a>[/QUOTE]</p><p><br /></p>
[QUOTE="yakpoo, post: 7672837, member: 18157"][COLOR=#ff0000]Edited[/COLOR] It's not a question of the cost of war vs. infrastructure. Fiat currencies (currencies not convertible to commodities such as Gold or Silver) are nothing more than Zero interest bonds and their "value" is directly proportional to the country's ability to repay their debt with something of value. The "value" of the Dollar is its status as [URL='https://www.investopedia.com/terms/l/legal-tender.asp']U.S. Legal Tender[/URL]. In other words, if you want to do business with the U.S., you have to settle accounts in U.S. Dollars. That's what creates the value of a U.S. Dollar...the strength of the U.S. to project power and defend the business interests of it and it's allies. After WWII, that's what changed the world's reserve currency from the British Pound to the U.S. Dollar. A Chinese attack on Taiwan (a U.S. ally) without a significant response by the United States, would erode the value of the Dollar and strengthen the Yuan...(imo). [URL='https://corporatefinanceinstitute.com/resources/knowledge/economics/fiat-money-currency/']Fiat currency is not supported by any physical commodity, but [B]by the faith of its holders and virtue of a government declaration[/B].[/URL][/QUOTE]
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