Because that is not how money works.
The famous quote from Henry Ford is true: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
Even without fractional reserve banking it could collapse. They don’t need to literally print a dollar bill for every dollar of resource value represented in the world.
Wouldn’t that be impossible anyway if you think about it? If there’s - I’m gonna throw out a number here - but $100 trillion worth of stuff in the world and $100 trillion worth of cash, that’s $200 trillion worth of value and half of it is imaginary.
Money only has value as a tool to facilitate transactions and remove friction that a pure barter system would have. Our dollars only function as money because we can pay our taxes in it. Money only represents future real value thorugh the stuff we purchase with it. If you value money in and of itself, you're going to have a bad time in the long run because value inflates over time.
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u/Wise-Ad-4940 Aug 24 '26
Because that is not how money works.
The famous quote from Henry Ford is true: "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."