Quote from: Medusah on May 21, 2024, 10:41:01 PM

Quote from: JamesNZ on May 20, 2024, 04:57:29 AM

Wait, what? There's no evidence? It is a common knowledge that units of fiat currencies are created by commercial banks issuing loans and by central banks purchasing government bonds. Did you live under a rock all the time?

Did you take the time to go through my message? What occurs if the central bank opts to generate money out of thin air? There's no value generation involved— just the introduction of new debt devoid of any intrinsic value.

There's no evidence supporting the notion that fiat currencies are backed one-to-one by value; in fact, evidence suggests the contrary. There is disconnection between the creation of money and tangible assets.

The value is by definition involved in debt. If you have dollars - which are units that the banking system issued as debt, you have something that debtors need in order to satisfy the debt. Just like when you have food you have something that people need to satisfy the hunger. When you have an item that people need, it is said that such an item is valuable, that it is an asset or a resource. So the fact that fiat currency units are created as debt means they are boxes that hold an asset, something valuable. But I explained all that already. It's just that you ignore it and just repeat that nonsense about a box that magically gets filled with 'value' by the act of trade.