Why Is A Dollar Called A ‘Buck’?

In colonial times in USA, traders used deer’s skin as a mean of payment. That’s why a dollar is called a “buck”.

As with many etymologies, the exact root of this word is difficult to say with one hundred percent certainty. However, the leading theory is extremely plausible and backed up by a fair bit of documented evidence. Specifically, it is thought that a dollar is called a “buck” thanks to deer.

One of the earliest references of this was in 1748, about 44 years before the first U.S. dollar was minted, where there is a reference to the exchange rate for a cask of whiskey traded to Native Americans being “5 bucks”, referring to deerskins.

In yet another documented reference from 1748, Conrad Weiser, while traveling through present day Ohio, noted in his journal that someone had been “robbed of the value of 300 Bucks.”

At this time, a buck skin was a common medium of exchange. There is also evidence that a “buck” didn’t simply mean one deerskin, but may have meant multiple skins, depending on quality. For instance, skins from deer killed in the winter were considered superior to those killed in the summer, due to the fur being thicker.

It is thought that the highest quality skins were generally assigned a one to one value with one skin equaling one buck. In contrast, for lower quality skins, it might take several of them to be valued at a single buck. The specific value for given sets of skins was then set at trading.

In addition, when the skin was from another animal, the number of skins required to equal a buck varied based on the animal and the quality of the skins. For instance, there is one documented trade where six high quality beaver skins or twelve high quality rabbit pelts each equaled one buck.

This use of skins as a medium of exchange gradually died off over the next century as more and more Europeans moved in and built towns and cities. Once the U.S. dollar was officially introduced after the passing of the Coinage Act of 1792, it quickly became the leading item used as a medium of exchange, but the term “buck” stuck around and by the mid-nineteenth century was being used as a slang term for the dollar.

Bonus Fact:

While it may be tempting to think that the “buck” in this sense is where we also get the phrase “pass the buck”, most etymologists don’t think the two are related. The leading theory on the origin of the phrase “pass the buck” is thought to come from poker, with one of the earliest known references of the idea of literally passing a buck being found in the 1887 work by J.W. Keller, titled “Draw Poker”. In it, Keller states:

The ‘buck’ is any inanimate object, usually knife or pencil, which is thrown into a jack pot and temporarily taken by the winner of the pot. Whenever the deal reaches the holder of the ‘buck,’ a new jack pot must be made.

As to why it is then called a buck, it is thought that may have arisen from the fact that buck-handled knives were once common and knives were often used as the “buck” in this sense. As for the figurative sense of passing the buck, this didn’t start popping up until the early twentieth century.

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AMERICA MADE GREAT AGAIN! U.S. Dollar Soars To 14-Year High

america-made-great-again-u-s-dollar-soars-to-14-year-high

Donald Trump is not even in office yet and he is ALREADY having a POSITIVE effect on our economy.

When the markets see Socialism in decline and Capitalism again ascendant, this is what happens. It’s not rocket science… merely economics.

The dollar hit a 14-year high against a basket of currencies on Wednesday as a post-U.S. election sell-off resumed across global bond markets, lifting Treasury yields and attracting investors to the U.S. currency.

That halted stocks in their tracks, with Europe’s main indices down as much as 0.8 percent and Wall Street expected to open 0.5 percent lower.

The Bank for International Settlements this week repeated its view that a stronger dollar poses risks for global markets and financial stability. Investors have largely shrugged off these warnings but stocks felt the heat of the dollar’s latest rise on Wednesday.

“I agree with the consensus interpretation of the key macro trades – higher yields and a stronger dollar – but I’m less persuaded by the expectation of higher global equities,” Stephen Jen of hedge fund Eurizon SLJ Capital said on Wednesday.

“The world’s interest rates have been dragged higher by the U.S. yield curve, creating the risk that interest rates may be too high for the still-fragile economies in Europe and emerging markets,” he said.

U.S. President-elect Trump’s plans to cut taxes and boost infrastructure spending would boost economic activity while his proposals to deport illegal immigrants and impose tariffs on cheap imports are seen driving inflation higher.

That prospect has given rise to expectations that U.S. interest rates will rise faster than previously anticipated, boosting the dollar.

The dollar index, a measure of its value against a basket of currencies, rose to 100.53 on Wednesday , its highest since April 2003.

The dollar rose 0.5 percent against the yen to a five-month high of 109.75 yen <JPY=>, rose to an eight-year high against the Chinese yuan of 6.8703 yuan <CNY=CFXS> and the euro fell below $1.07 for the first time in a year <EUR=>.

“The narrative on the dollar is strong,” said Simon Smith, chief economist at FXPro.

“A move higher in interest rates next month is now a near dead cert, with the implied path for rates next year also moving higher and providing further support for the dollar.”

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Trump has done more for the dollar in 8 days than Obama and Bush did in 14 years.

 

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