US Dollar

The US dollar is the currency of the United States and acts as a reserve currency for international commerce. The dollar is the canonical exemplar of fiat money. While fiat money has no backing, its efficacy as a currency is measured in terms of its monetary velocity and the amount of bank assets and private debt that is denominated in the currency. This is effectually a measure of its success for a currency's core purpose—to provide a stable and reliable means of exchange as a social-financial technology for enabling economic productivity. The financial historian Adam Tooze writes of the dollar:

Fiat money is backed by "nothing" other than the trifling matter of tens of trillions of dollars in private credit, the rule of law and the power of the state, itself inserted into a state system. In other words, the entire structure of global macrofinance.


The dollar is a currency.

The dollar is issued by a central bank.

The dollar is a public good.

The dollar is inflationary.

The dollar has no fundamental value.

The dollar has no income-cashflows.

The dollar is not a speculative investment.

The dollar has no use value.

The dollar has a present value of zero.

The dollar has a terminal value of zero.

The dollar is a non-productive asset.

The dollar is not a security.


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