student questions and the true value of money
These might seem like trivial questions, but I've never found a good answer to them: 1. If the world's trade is done in US dollars, for the US government to obtain goods and services from other countries, is it really a matter of printing (or creating additional electronic money) and exchanging it for tangible goods and services?
2. How much money is there in the world? For arguments sake, let's say the total global wealth is $100 trillion, what guarantees that value? Surely, it's just a series of numbers held on various computer systems, in which case couldn't the number be fudged to $50 or $200 trillion?
Is inflation the only thing that keeps 1 & 2 in check? (I font believe gold still underpins the values )
I didn't find the right solution from the Internet.
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