Difference between revisions of "Dollar (U.S.)"

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The United States Dollar is the official currency of the United States. It is also widely used as a reserve currency outside of the United States.
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[[File:Reserve_currency.png|right|300px|thumb|]]
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The '''United States dollar''' is the official [[currency]] of the [[United States]]. It is also widely used as a [[reserve currency]] outside of the [[United States]] by central banks and as the common currency in countries like [[Ecuador]], [[El Salvador]], [[Panamá]], [[Argentina]] and elsewhere. It is a form of [[fiat money]].
  
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Until 1974, the value of the United States dollar was fixed to a value of a fixed amount of a precious metal. Between the late 18th century and the late 19th century, the [[United States]] dollar was fixed to the value of either gold or silver in a system known as bimetallism.  In the early 1970's, the [[trade deficit]] and [[inflation]] in the United States, caused a run on the gold reserves used to back the United States dollar. This forced the United States to delink the value of the dollar from a specific amount of gold.  Currently, the issuance of currency is controlled by the Federal Reserve Banking system.
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==The Dollar Bill==
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The current dollar bill designs are as follows:
  
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==The Symbol==
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* $1 [[George Washington]] on front, [[Great Seal]] on reverse
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One theory states that the dollar symbol $ is a corruption of the monogram of the initials U.S., and is often used in a derogatory fashion.  Ayn Rand once said that "Do you know that the United States is the only country in history that has ever used its own monogram as a symbol of depravity?  Ask yourself why.  Ask yourself how long a country that did that could hope to exist, and whose moral standards have destroyed it."  This statement would not be true if we took it to mean that some US citizens used the monogram in a derogatory fashion, since that is, and has been, a common form of protest.
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* $2 [[Thomas Jefferson]] on front, Signing of [[Declaration of Independence]] on reverse (from 1976 Series), [[Monticello]] on reverse (pre-1976 Series)
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* $5 [[Abraham Lincoln]] on front, [[Lincoln Memorial]] on reverse
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* $10 [[Alexander Hamilton]] on front, US [[Treasury]] building on reverse
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* $20 [[Andrew Jackson]] on front, [[White House]] on reverse
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* $50 [[Ulysses S. Grant]] on front, US [[Capitol]] building on reverse
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* $100 [[Benjamin Franklin]] on front, [[Independence Hall]] on reverse
  
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According to the U.S. Bureau of Engraving and Printing, the most widely accepted origin for the dollar sign is that it evolved from <i>P's</i>, being used to represent Spanish or Mexican pesos, piastres, or "pieces of eight", which were common in the English colonies in North America.  Over time the S was superimposed upon the P and this created a close approximation to the modern $.<ref>http://www.moneyfactory.gov/document.cfm/18/113</ref>
 
  
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==The Design==
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$500, $1000, $5000, and $10,000 bills were formerly (and rarely) printed, though [[credit card]]s and [[checking account]]s eventually made them obsolete. A $100,000 [[gold]] certificate also was printed, but it was only for circulation within the [[bank]]ing system and not for use by the public.<ref>http://www.moneyfactory.gov/uscurrency/largedenominations.html</ref>
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What differs the US from other nations to allow that kind of statement is our strong national heritage in which an act by one citizen is taken to be one of the whole nation. This is the reason that the Roman fasces often appears on our currency.
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There are several symbols which appear on the dollar, and it is often said by the [[Federal Reserve]] that they are there to prevent counterfeiting.  This may be true, but the symbols contain a great deal of [[Freemasonry|Masonic]] symbolism<ref>http://www.jesus-is-savior.com/Evils%20in%20Government/Federal%20Reserve%20Scam/satan_on_our_dollar.htm</ref>.  Some modern Christians think this to be an innocuous link to the Masonic lifestyle of the [[Founding Fathers]].
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The [[$2 bill]] is rarely used in circulation, although most large banks have them for customers who request them.
  
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==The Dollar Bill==
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==Dollar Coins==
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The Dollar Bill currently features George Washington.
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Historically, [[90% silver]] [[Morgan Dollar]]s (1878-1921) and [[Peace Dollar]]s (1921-1935) circulated<ref>http://www.coinflation.com/</ref> and were redeemable with [[Silver]] Certificates.
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Since then, the [[United States Mint]] has produced dollar coins for circulation featuring:<ref>http://www.usmint.gov/mint_programs/circulatingCoins/index.cfm?action=CircDollar</ref>
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*[[Dwight D. Eisenhower]] (made 1971-1978)
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*[[Susan B. Anthony]] (1979-1981, 1999)
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*[[Sacajawea]] (now "Native American Dollars") (2000–present)
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*U.S. [[President of the United States of America|Presidents]] - a series of dollar coins featuring the presidents in chronological order (2007–present)
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The Susan B. Anthony dollar, which was smaller than its predecessors, did not gain acceptance due to its similarity to the quarter. Sacajawea and Presidential coins were [[brass]]-colored in an attempt to address this issue. However, none of these have gained widespread acceptance. This may be due to the inconvenient nature of carrying coins in one's pocket.
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==Fiat Currency==
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Since the dollar is not backed by a [[commodity]], it is considered a "[[fiat currency]]" (or "[[soft money]]"). Metal-backed currency is also called "[[hard money]]" (or "[[sound money]]" by supporters of its re-institution)
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==Dollar Symbol==
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The U.S. Dollar is represented by the $ symbol, which was originally the letters "U" and "S" on top of each other.  This was simplified to an "S" with two vertical lines through it, and now is sometimes displayed as an "S" with only one vertical line through it.
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==History==
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===Bimetallism===
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The dollar grew out of the need for a single currency to unite [[the colonies]].  The creation of the dollar was authorized by the [[Continental Congress]] as a currency backed by both [[gold]] and [[silver]].  The fluctuations in the prices of gold and silver led to the decrease in the amount of [[precious metals|metal]] exchangeable. 
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[[Inflation]] was an issue during the [[Civil War]], notably in the [[Confederacy]]. For this reason, privately minted currency (today referred to as "civil war tokens") was used. Following the Civil War, private currencies failed, state-specific currencies were [[tax]]ed out of existence, and the US dollar became the medium exchange for the United States. After the Civil War, the United States experienced an extreme [[deflation]]ary period, ending after the [[President]]ial campaign of 1896.
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Eventually, the discovery of large [[silver]] deposits in the western United States caused the price of silver to drop. [[Farm]]ing interests and [[borrower]]s wanted to continue the silver system which would build in inflation, allowing the easier payment of [[debt]]s. Banking interests advocated switching to the [[Gold Standard]], which could allow for some inflation by changing the [[gold to dollar ratio]], but would make for a more stable dollar.  This led to the populist "Cross of Gold" speech by [[William Jennings Bryan]].
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===Gold standard===
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During most of the twentieth century, the US dollar was [[hard money|backed by gold and silver]]. This was true even after the creation of the [[Federal Reserve|Federal Reserve System]] in 1913, when gold was fixed at $20/ounce. During this time, there were several circulating forms of paper currency, including Federal Reserve Notes, Silver Certificates, Gold Certificates, and United States Notes (which were issued directly by the Treasury and exchangeable for any of these). The Treasury seal on each type of bill was stamped with a different color (Green, Blue, Gold, and Red, respectively).
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During the [[Great Depression]], [[Franklin Delano Roosevelt]] issued an [[executive order]] (like a financial [[eminent domain]] "theft") which forced all [[American]]s to exchange their gold for $35/ounce in [[fiat currency]]. This remained law in which ownership of gold specie was illegal until 1976.
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===Pre-1965 Silver===
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During the 1960s, the demand for silver (and its price) rose due to the dawn of [[electronic]]s. [[Quarter]]s and [[dime]]s (then made from 90% silver - now called "[[Junk silver]]", "[[Constitutional silver]]" or "[[pre-1965 silver coins]]") were issued with a new "clad" composition in 1965, and Silver Certificates were redeemed by holders and no longer circulated. The [[half dollar]] was given a 40% "silver-clad" composition until it also became clad in 1971.<ref>http://www.coinflation.com/</ref>
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===Richard Nixon ends the Gold Standard===
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[[File:US Dollar share of reserve currencies.PNG|right|300px|thumb|U.S. Dollar share of global reserve currencies since passage of [[Russian sanctions]] beginning with the [[Magnitsky Act]] after the [[Obama/Biden]] [[Maidan coup]] in 2014.<ref>[https://www.nakedcapitalism.com/2024/01/status-of-us-dollar-as-global-reserve-currency-and-usd-exchange-rates-long-slow-uneven-decline-continues.html Status of US Dollar as Global Reserve Currency and USD Exchange Rates: Long, Slow, Uneven Decline Continues], January 2, 2024, By Wolf Richter, editor at Wolf Street. Originally published at Wolf Street. www.nakedcapitalism.com</ref>]]
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In the early 1970s, the [[trade deficit]] and [[inflation]] in the United States caused a [[bank run]] on the [[gold reserve]]s used to back the United States dollar. To combat this, [[President]] [[Richard Nixon]] removed the [[Bretton Woods System]] in 1971. This resulted in the value of the dollar being set via trading in the [[foreign exchange]] ([[FOREX]]) market, the removal of restrictions on gold ownership, and the price of gold in the US being set by the [[free market]].
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The US Treasury stopped issuing United States Notes in 1971,<ref>http://www.treas.gov/education/faq/currency/legal-tender.shtml</ref> leaving only the "green seal" Federal Reserve Notes in production and circulation.
  
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==Sacagawea Dollars==
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{{clear}}
  
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In 2000, the US Mint began to issue Sacagawea Dollars.
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== See also ==
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* [[Capital]]
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* [[Canadian dollar]]
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* [[Australian dollar]]
  
 
==References==
 
==References==
 
<references/>
 
<references/>
  
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==External links==
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* [https://www.telegraph.co.uk/finance/economics/12141369/Dollar-tumbles-as-Fed-rescues-China-in-the-nick-of-time.html Dollar Tumbles as Fed Rescues China in the Nick of Time] ([[The Telegraph]]) Excerpt: “The US dollar has suffered one of the sharpest drops in 20 years as the [[Federal Reserve]] signals a retreat from monetary tightening, igniting a powerful rally for [[commodity|commodities]] and easing a ferocious squeeze on dollar debtors in [[China]] and emerging markets.”
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* [http://www.measuringworth.com/ppowerus/ "Purchasing Power of [[Money]] in the United States from 1774 to 2008"], translates the value of a dollar in one year to the value today or any year
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* [http://www.inflationdata.com/ InflationData.com] Includes [[Consumer Price Index]], inflation calculator, historical information, and [[inflation]] [[gold]] and [[oil]] prices.
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* [http://www.coinflation.com/ Coinflation] From Coinflation: Composition information and scrap values of modern and historic coins. Includes information on dollar coins.
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* [http://www.moneyfactory.gov/uscurrency.html Dollar info from US Bureau of Engraving and Printing]
 
[[Category:Currency]]
 
[[Category:Currency]]
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[[Category:Investments]]
 
[[Category:Economics]]
 
[[Category:Economics]]
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[[Category:Coins]]

Latest revision as of 14:51, September 9, 2025

Reserve currency.png

The United States dollar is the official currency of the United States. It is also widely used as a reserve currency outside of the United States by central banks and as the common currency in countries like Ecuador, El Salvador, Panamá, Argentina and elsewhere. It is a form of fiat money.

The Dollar Bill

The current dollar bill designs are as follows:


$500, $1000, $5000, and $10,000 bills were formerly (and rarely) printed, though credit cards and checking accounts eventually made them obsolete. A $100,000 gold certificate also was printed, but it was only for circulation within the banking system and not for use by the public.[1]

The $2 bill is rarely used in circulation, although most large banks have them for customers who request them.

Dollar Coins

Historically, 90% silver Morgan Dollars (1878-1921) and Peace Dollars (1921-1935) circulated[2] and were redeemable with Silver Certificates.

Since then, the United States Mint has produced dollar coins for circulation featuring:[3]


The Susan B. Anthony dollar, which was smaller than its predecessors, did not gain acceptance due to its similarity to the quarter. Sacajawea and Presidential coins were brass-colored in an attempt to address this issue. However, none of these have gained widespread acceptance. This may be due to the inconvenient nature of carrying coins in one's pocket.

Fiat Currency

Since the dollar is not backed by a commodity, it is considered a "fiat currency" (or "soft money"). Metal-backed currency is also called "hard money" (or "sound money" by supporters of its re-institution)

Dollar Symbol

The U.S. Dollar is represented by the $ symbol, which was originally the letters "U" and "S" on top of each other. This was simplified to an "S" with two vertical lines through it, and now is sometimes displayed as an "S" with only one vertical line through it.

History

Bimetallism

The dollar grew out of the need for a single currency to unite the colonies. The creation of the dollar was authorized by the Continental Congress as a currency backed by both gold and silver. The fluctuations in the prices of gold and silver led to the decrease in the amount of metal exchangeable.

Inflation was an issue during the Civil War, notably in the Confederacy. For this reason, privately minted currency (today referred to as "civil war tokens") was used. Following the Civil War, private currencies failed, state-specific currencies were taxed out of existence, and the US dollar became the medium exchange for the United States. After the Civil War, the United States experienced an extreme deflationary period, ending after the Presidential campaign of 1896.

Eventually, the discovery of large silver deposits in the western United States caused the price of silver to drop. Farming interests and borrowers wanted to continue the silver system which would build in inflation, allowing the easier payment of debts. Banking interests advocated switching to the Gold Standard, which could allow for some inflation by changing the gold to dollar ratio, but would make for a more stable dollar. This led to the populist "Cross of Gold" speech by William Jennings Bryan.

Gold standard

During most of the twentieth century, the US dollar was backed by gold and silver. This was true even after the creation of the Federal Reserve System in 1913, when gold was fixed at $20/ounce. During this time, there were several circulating forms of paper currency, including Federal Reserve Notes, Silver Certificates, Gold Certificates, and United States Notes (which were issued directly by the Treasury and exchangeable for any of these). The Treasury seal on each type of bill was stamped with a different color (Green, Blue, Gold, and Red, respectively).

During the Great Depression, Franklin Delano Roosevelt issued an executive order (like a financial eminent domain "theft") which forced all Americans to exchange their gold for $35/ounce in fiat currency. This remained law in which ownership of gold specie was illegal until 1976.

Pre-1965 Silver

During the 1960s, the demand for silver (and its price) rose due to the dawn of electronics. Quarters and dimes (then made from 90% silver - now called "Junk silver", "Constitutional silver" or "pre-1965 silver coins") were issued with a new "clad" composition in 1965, and Silver Certificates were redeemed by holders and no longer circulated. The half dollar was given a 40% "silver-clad" composition until it also became clad in 1971.[4]

Richard Nixon ends the Gold Standard

U.S. Dollar share of global reserve currencies since passage of Russian sanctions beginning with the Magnitsky Act after the Obama/Biden Maidan coup in 2014.[5]

In the early 1970s, the trade deficit and inflation in the United States caused a bank run on the gold reserves used to back the United States dollar. To combat this, President Richard Nixon removed the Bretton Woods System in 1971. This resulted in the value of the dollar being set via trading in the foreign exchange (FOREX) market, the removal of restrictions on gold ownership, and the price of gold in the US being set by the free market.

The US Treasury stopped issuing United States Notes in 1971,[6] leaving only the "green seal" Federal Reserve Notes in production and circulation.

See also

References

  1. ↑ http://www.moneyfactory.gov/uscurrency/largedenominations.html
  2. ↑ http://www.coinflation.com/
  3. ↑ http://www.usmint.gov/mint_programs/circulatingCoins/index.cfm?action=CircDollar
  4. ↑ http://www.coinflation.com/
  5. ↑ Status of US Dollar as Global Reserve Currency and USD Exchange Rates: Long, Slow, Uneven Decline Continues, January 2, 2024, By Wolf Richter, editor at Wolf Street. Originally published at Wolf Street. www.nakedcapitalism.com
  6. ↑ http://www.treas.gov/education/faq/currency/legal-tender.shtml

External links

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