On Dec 20, 5:17 pm, John David Galt <j...@diogenes.sacramento.ca.us>
wrote:
> pkbrandon wrote:
> > If Federal commitments like T-Bills and the FDIC are not honored, then
> > currency is not likely to have any value either; it's just another
> > Federal promise to pay.
>
> I'll bite: to pay what? If you mean gold, that promise ended in 1973.

Actually, what ended in 1973 was the Silver Certificate (the gold
standard was ended in the '30's).
from Wikipedia:
"In March 1964, Secretary of the Treasury C. Douglas Dillon halted
redemption of Silver Certificates for Silver Dollars. In the 1970s,
large numbers of the remaining silver dollars in the mint vaults were
sold to the collecting public for collector value. Silver Certificates
were abolished by Congress on June 4, 1963 and all redemption in
silver ceased on June 24, 1968. Paper currency is still valid legal
tender without the Silver Certificate, instead being backed simply by
the perceived strength of the U.S. economy. According to the U.S.
treasury, "The notes have no value for themselves, but for what they
will buy. In another sense, because they are legal tender, Federal
Reserve notes are 'backed' by all the goods and services in the
economy."[1]"

But you have a point -- currency is no longer backed up by an offer of
direct exchange for a specific commodity.
Although, one might say that the Federal Reserve backs up currency by
accepting it from banks in exchange for electronic funds, and you can
use currency to purchase Federal securities.
So what's the point of putting it under your mattress? It has no
intrinsic value, as noted above, which was MY point.
If the economy goes under (and it's becoming apparent that if the US
economy goes under so will the rest of the world) we'll be left with
barter. What can you stash that someone else would take in exchange
for food?