@punk6529 Agreed. But I think there is another item that should be added to this framework. Global reserve currency. If nationβs currency is the reserve currency, that has wealth-generating effects. Would add right before national defense probably.
@santiagoroel Philosophically: Yes, external validation is not necessary to determine value.
Financially: No, external validation is required to determine value.
Ultimately, value in finance is based on faith in a commonly held set of beliefs and itβs very contextual as well.