[Appalled but Not Surprised]

"Fiat currency" is not a 'goldbug' term. It is a description of currency that is not backed by any solid asset, but is backed only by the full faith and credit (i.e. the promises) of the government that issues it. >>>

Uh, the promises AND the assets. The assets of the U.S. government are certainly worth vastly more than a few tons of refined yellow metal in a safe.

[.cnI redruM]

That's what people miss. Also, there is the creditworthiness factor. Unless something totally unpredictable and calamitous happens, there will still be a US 50 years from now, and it will still gripe while it pays reliably on all of it's debt obligations.

About 10% of the rest of the world can be considered that safe of an investment bet. That, in a nutshell, is what allows us get away with the issue of a fiat currency and have the rest of the world take us seriously.

[Petronski]

Yeah, but gold is so shiny!

So it's got that goin' for it.

Which is nice.

[Roberts]

True, the government has more assets, but the amount of the government's liabilities is staggering.

[Centurion2000]

The assets of the U.S. government are certainly worth vastly more than a few tons of refined yellow metal in a safe.

And NOT worth the M3 supply.

Of course there is something backing up the dollar that no one seems to think about. Ever wonder why there is so much federal land?