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With respect, this is a mistaken understanding of the nature of money. You don't ever use money up. It is always being created anew. That is by design, it is e
by jonahbenton 6y ago
With respect, this is a mistaken understanding of the nature of money.
You don't ever use money up. It is always being created anew. That is by design, it is encoded in the rules of accounting.
While it is true that having stuff requires work, there is a "vault of gold"- both literal and figurative- in the Federal Reserve system.
The literal gold is not what is interesting here- the value of physical assets is largely a shared fiction- but the conceptual gold- the balance sheet- is a tool of essentially unlimited power, capable of providing necessary liquidity to keep most people safely home and fund essential work in a non-sacrificial manner.
When the Kuhnian revolution comes it will be with wonder and horror at the barbarity of a society that forced people to sacrifice for something as banal as liquidity.
Cory's story captures- correctly, in my view- the essence of the dynamic.