Home › Forums › Financial Markets/Economics › U.S. TO DEFAULT ON ITS DEBT – SUMMER 2009 › All governments use Fiat
All governments use Fiat currencies now. Fiat currencies are backed by the strength of the country that issues it.
You can’t have a world currency without a world government to back it.
The US is in for some big problems but Europe and Asia will get hurt worst and can not provide an alternative to the dollar.
So for now we are and will remain the reserve currency.
John