It sounds like what you are saying is that it doesn't exist, until by the act of someone borrowing it...it is created? And isn't that pretty much the premise of fractional reserve banking?
It sounds like what you are saying is that it doesn't exist, until by the act of someone borrowing it...it is created? And isn't that pretty much the premise of fractional reserve banking?
Yep. I don't think any western government has engaged in raw printing of true fiat money. And yes, fractional reserve banking can (and usually does) multiply what the government borrows into existence.
However you look at it, it sure seems like creating something out of nothing, regardless of whether it is physical paper or electronic and regardless of who is doing it, though, doesn't it? The only value in it is in the perception that people have of it.
- I don't pretend to know what the future holds, but I do feel very strongly that nothing is as it seems, and that things are not going to be returning to any semblance of what we have considered "normal", probably ever again. Time will tell. Prepare for the worst, hope for the best, and with any luck we will all end up somewhere in the middle.
It sounds like what you are saying is that it doesn't exist, until by the act of someone borrowing it...it is created? And isn't that pretty much the premise of fractional reserve banking?
Yep. I don't think any western government has engaged in raw printing of true fiat money. And yes, fractional reserve banking can (and usually does) multiply what the government borrows into existence.
However you look at it, it sure seems like creating something out of nothing, regardless of whether it is physical paper or electronic and regardless of who is doing it, though, doesn't it? The only value in it is in the perception that people have of it.
- I don't pretend to know what the future holds, but I do feel very strongly that nothing is as it seems, and that things are not going to be returning to any semblance of what we have considered "normal", probably ever again. Time will tell. Prepare for the worst, hope for the best, and with any luck we will all end up somewhere in the middle.