> “there is no problem because the government can simply create as much money as it wants out of thin air.” So they are implicitly saying that any currency has value because people believe it has value but don’t extend that generosity towards other assets where there is a clearly demonstrated group ascribing value to it.
Prior to 1971, federal reserve notes were backed by gold. Their value was generated out of thin air even then - a piece of paper with a promissory of gold is not a bar of gold.
Today the US holds thousands of tons of gold at Fort Knox and other places. Why? Why does it do this? I can assure you the 9 billion dollars worth of Dogecoin out there do not have thousands of tons of gold out there implicitly backing them.
Beyond all of this, your point that countries don't have printing presses that can generate am infinite amount of value is valid.
Prior to 1971, federal reserve notes were backed by gold. Their value was generated out of thin air even then - a piece of paper with a promissory of gold is not a bar of gold.
Today the US holds thousands of tons of gold at Fort Knox and other places. Why? Why does it do this? I can assure you the 9 billion dollars worth of Dogecoin out there do not have thousands of tons of gold out there implicitly backing them.
Beyond all of this, your point that countries don't have printing presses that can generate am infinite amount of value is valid.