A redditor asks, “Where has all the money in the world gone?”
It’s hard to explain this to a five-year-old, because there are some fairly abstract concepts involved, but here goes… All actual “money” is debt. All of it, including monetary gold, etc. (Don’t argue with me yet, I’ll get to that.) Imagine a pretend world with no money, some kind of primitive villiage or something. Now let’s invent paper money. You can’t just print a bunch of paper that says people have to give you stuff, because nobody would honor it. But you could print IOUs. Let’s walk through this…
Includes a sidebar on gold-backed currency.