What is a Dollar Worth?

The dollar is a "note". In other words, it is a "debt" owed by the Fed. It pays 0.00% interest.
Accounting 101: From the perspective of the Federal Reserve (which issues these "Reserve Notes") the dollar is a liability (debts owed are liabilities). In order for the Fed's balance sheet ot balance, Assets less Equity Must = Liabilities.

The Fed's "Assets" are: US Treasuries (notes to be paid by the Treasury), bank reserves, some foreign currency, some commerical paper, and a small amount of gold.
Treasuries are debts owed by the government.

SO IN OTHER WORDS, THE DOLLAR IS A DEBT WHICH IS BACKED BY A DEBT.

When the Fed "prints money" they keystroke "Federal Reserve Notes" (dollars) which become liabilities on the Fed's balance sheet. They then use these "notes" to buy "assets" which are just the debts of the government (or GM and the banksters).

There is no "money" in any classical sense beyond the the hard assets the Fed holds. All that exists is the debt of the left hand backed by the debt of the right.

The purchasing power of Federal Reserve 'Notes' hinges on the value of the ASSETS that back them. That value is determined by the PERCEPTION of the government's ability to convert labor into dollars (via taxes) that can then be used to pay the interest on the debt they owe (Treasuries).

It is a system only CPAs, Ken Lay and Bernard Madhoff could be proud of.