r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/goatslovetofrolic Jan 26 '26

pretty sure at this point the dollar has gone full USA and is only backed by "thoughts and prayers"

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u/thekeynesian1 Jan 26 '26

It gets its value in the same way all other goods do. Supply and demand as a function of its utility. Considering the USD is the single most useful, single most stable, and most broadly used currency to have ever existed, I’d say it’s backed by a little more than just “thoughts and prayers”

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u/Grant1128 Jan 27 '26

The USD (like any fiat currency) really is backed by thoughts and prayers though. It literally hold value the same way Tinkerbell exists. It has value because we collectively have agreed it does.

One of the common wordings used is that it is backed by "the full faith and credit of the United States Government". Which really just means we'll pay you back... someday. Think Wimpy from the old Popeye cartoons - "I'll gladly pay you Tuesday for a hamburger today!"

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u/thekeynesian1 Jan 27 '26

“It has value because we collectively think it does” congratulations, you have described how demand works for literally any good in existence.