The USD is backed by an extortion racket. For real. That is no exaggeration. Artificially high demand for USD is created by forcing oil producing nations to make their oil sales in USD. This has been the case for the last 50 years and is the reason for the constant U.S. interference in the middle east. It began in the 1970's. In classic mafia style the Nixon administration offered the oil producing nations "protection" from their enemies. In return for that protection they must promise to make their oil sales in USD. If they refuse that protection and decide to make oil sales in other currency they will be overthrown/invaded/destroyed.
This is why USD is world reserve currency. As long as there is oil to be paid for, there will always be demand for the USD on the world currency markets. Where there is demand there is value.
The USD is backed by an extortion racket. For real. That is no exaggeration. Artificially high demand for USD is created by forcing oil producing nations to make their oil sales in USD. This has been the case for the last 50 years and is the reason for the constant U.S. interference in the middle east. It began in the 1970's. In classic mafia style the Nixon administration offered the oil producing nations "protection" from their enemies. In return for that protection they must promise to make their oil sales in USD. If they refuse that protection and decide to make oil sales in other currency they will be overthrown/invaded/destroyed.
This is why USD is world reserve currency. As long as there is oil to be paid for, there will always be demand for the USD on the world currency markets. Where there is demand there is value.