Quote:
Originally Posted by cjr72
Well once the government declares certain coins and notes as legal tender you have to by law accept that money if offered by someone in debt to you whether you believe in it or not. It's also required to extinguish your tax obligations.
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In both cases you are talking about obligations that were incurred in money in the first place.
When I am talking about belief is required for the dollar to be worth the dollar, I am not talking about the greenback, but rather that a dollar has any real worth at all. If tomorrow every store keeper in America decided the dollar was worthless, it would be. That is not likely to happen even in this economy, but if you look at what happened to the Confederate Dollar during the American Civil War, you might get a better idea of what I mean. Its reasons like this that in times of trouble, people often turn to Gold... Gold's worth is still really only based on belief (being that Gold has only limited industrial usefulness), but that belief goes back a lot further in our culture than the U.S. Dollar.
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Bill