Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Oberon
So what's a dollar again? How is it defined? What determines its value?

I will jump to the chase :) A dollar has no intrinsic value. Its value is determined by supply and demand. The supply is determined by the reserve rate and the demand is determined by the GDP and interest rate.

Your analogy to units of temperature fails because those are measurements. Your analogy would be more appropriate to the interest rate determining the value.

78 posted on 03/30/2007 8:09:15 AM PDT by LeGrande (Muslims, Jews and Christians all believe in the same God of Abraham.)
[ Post Reply | Private Reply | To 48 | View Replies ]


To: LeGrande
Your analogy to units of temperature fails because those are measurements. Your analogy would be more appropriate to the interest rate determining the value.

My analogy was to clarify the intent of my question...I already knew that the dollar was fiat money, just as I knew that a degree Celsius is a measure of temperature. What I wanted to know is how the value of the dollar is determined. In short, my question was 'What's a dollar?' but not in the 'it's a unit of fiat money' sense.

85 posted on 03/30/2007 8:17:18 AM PDT by Oberon (What does it take to make government shrink?)
[ Post Reply | Private Reply | To 78 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson