depend on the state to, partly it's a federal reserve, partly it's rule of law and the court system, which adjudicates disputes. When banks make loans, they know that the loans they hold are assets. And if the borrower doesn't repay, they could be forced into bankruptcy. That's all part of it. The federal reserve's commitment to maintain the more or less stable purchasing power of dollars, all of these things are crucial in the confidence that we have as ordinary consumers or as business people or whatever role in the economy we're playing in believing that the dollars that we, or the yen or the pounds or the euros, whatever, this is true for all economies, but it's since we're talking about the dollar, it is certainly true for the dollar. That is why we are confident that the JPMorgan bucks are exactly equivalent to those dollar bills that we can just pull out of our wallets and it says federal reserve note at the top. And another thing that it says on it is this note is legal tender (22/45)
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