I challenge you to exchange the dollar for oil...since it's backed by oil. You can buy it, but you cannot exchange it. People are taking the words "backed by" here wrong.
When the US was on the gold standard you could take a silver certificate into a bank and swap it straight up for physical silver. The gas analogy is terrible.
I challenge you to exchange the dollar for oil...since it's backed by oil. You can buy it, but you cannot exchange it. People are taking the words "backed by" here wrong.
When the US was on the gold standard you could take a silver certificate into a bank and swap it straight up for physical silver. The gas analogy is terrible.
Because at that time, we were on the Gold Standard, which had our dollars backed by Gold and Silver. I don't see where you'd miss that.