4 ms·

And, also, government creates the money we trade around as 'ours.'

• lalos 8y ago
  People give value to the currency, if we stop using it it becomes just paper. Maybe that would apply for gold standard backed currency.
  • pjmorris 8y ago
    Look at the correlation between currencies traded around the world and currencies that are trade-able with governments to pay taxes. By volume, most trades are made in currencies created and backed by governments. People can and do make their own, but it's a fraction of economic activity. [0] https://en.wikipedia.org/wiki/Fiat_money https://en.wikipedia.org/wiki/Fiat_money [1] https://en.wikipedia.org/wiki/Modern_Monetary_Theory https://en.wikipedia.org/wiki/Modern_Monetary_Theory