Earlier quoted context omitted.
Value is arbitrary. None of the major world fiat currencies have any inherent value. They are backed by nothing. Reminds me of an episode of This American Life. Brazil's currency was down the toilet, so they invented a new currency and tricked the populace into thinking it had value. http://www.thisamericanlife.org/radio-archives/episode/423/t...
>Value is arbitrary. None of the major world fiat currencies have any inherent value. They are backed by nothing. They are backed by a government which knows that once it doesn't honor the value, the economy (and probably the govt too) is finished.
Yes, and if they go down the toilet, you are going down with them. You aren't going to recover your losses once a more competent administration takes over.