The US Dollar was historically "backed" by GOLD. Meaning in the past one could trade their paper dollars for its equivalent in Gold. Dollars were just a paper form of Gold. In 1971 than President Nixon took the Dollar OFF the Gold standard. So what "backs" the dollar today?
The US military is the ultimate backstop for the USD because the military props up the international framework. No law is any good without the threat of force and this is no exception. The US has not been shy about making use of force when nations have decided to “get out of line”.
