(Marine Corps Times) Backtalk: Defending the Defense dollar

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Defending the Defense dollar
By Brian Braden

Here’s an economics lesson for the American service member.

pull out a dollar bill. Its value isn’t set by gold or precious metal. Only law and world currency markets determine its worth. Why, then, would someone buy mere paper not backed by a tangible asset? For the same reason you might buy stock in a company. Foreigners buy our dollars because they know America has the greatest return on investment of any endeavor in history.

America now finds itself in economic hard times. Does the world’s smart money still consider America a safe bet?

Absolutely, and the U.S. service member has something to do with it.

Since the early 1990s, America has led the way creating a post-Cold War global economy built on international free trade. For better or worse, the U.S. is the lynchpin holding it all together. When foreign countries buy our dollars and debt, they essentially cast a vote of confidence in America and the global economic system we helped establish.


Rest of article at: http://www.marinecorpstimes.com/community/opinion/marine_backtalk_dollar_011909a/%2e