This is sure ironic since Federal reserve notes are derivative instruments with no assets backing them. Thanks to president Nixon in 1971, gold was removed as the underlying asset, but never replaced with anything.
Sure, at one point, you could argue federal reserve notes were essentially backed by oil. But today, this isn't true. You may try to argue the military backs the currency and 5 years ago, I might agree. Today... not so much.
This is sure ironic since Federal reserve notes are derivative instruments with no assets backing them. Thanks to president Nixon in 1971, gold was removed as the underlying asset, but never replaced with anything.
Sure, at one point, you could argue federal reserve notes were essentially backed by oil. But today, this isn't true. You may try to argue the military backs the currency and 5 years ago, I might agree. Today... not so much.
(post is archived)