who is going to make them pay it back? all of money and law is collective imagination enforced by threat of violence

>>61884261
ah geez dood

>>61884261
It's the amount of dollars that exist. A dollar created is a dollar of debt that needs to be paid off, which destroys this dollar. 0 debt means that all economic activity has stopped, and nothing is sold or bought.

Paper Money used to be backed by Gold. You could not print more paper money than gold that existed. Because the amount of gold above ground only increased by 1-2% a year, you could only print 1-2% more paper money a year. Inflation basically didn't exist.

In 1971, we took paper money off the gold standard. This is when hell on Earth was unleashed.

Essentially, what Central Banks and Governments do these days is "print money" - but there is a certain way they create new money, they don't just mindlessly print it.

- One part of the government asks another part of the government for a loan, promising to pay back the loan plus interest.
- Government creates money out of thin air and gives it to the government part asking
- Government spends it on w/e
- But then they have to pay back that loan with interest - and they don't have the money
- So they ask for another loan to pay back the last loan, promising to pay it off plus interest

And the loop continues over and over again
Pretty sure this is how it goes for the most part