This is really hard to explain (I’m having a lot of trouble with it myself), but a few things are coming into focus.
Debt looks a lot like money. Schemes to use debt as money, in the past, have usually collapsed rather quickly (like blowing out a credit card), for obvious reasons.
If the mint coins a $20 coin, and you perform a service, getting it in return, you have $20 and no one is indebted thereby. Of course, you have that coin and no one else also has it.
Paper money is not like that. A lot of it exists as ledger entries, or electrons, and a lot of the positive balances represent someone else’s debt to the issuer (which debt, in the beginning of a paper system, is usually paid back with interest).
But men are not angels, as the saying goes, and debt-as-money requires strong regulation to make it work, because when you have $20 as a ledger entry as opposed to a $20 double eagle, a lot of people have the same $20 at the same time.
What’s new under the sun (the underlying concepts are not new) is that the powerful producer countries have entered into various compacts to ALL use paper as money, and to maintain the fiction of someone’s future productivity as “backing”, or assurance that the hundreds of trillions of obligations allowing the printing presses to roll are good.
But they’re not good, they’re just postponed.
The 102 year run of debt (or credit) as money is coming to an end. When, where, and how has not been revealed. But end it will.
No, I am not the guru on the mountain top who one goes to for the world's secrets.
But the determination of the large banks, those with inside government information, to force consumers into a cashless society is a very very serious danger sign.
Your example of what happens to the Gold Eagle vs. what happens when paper money and electronic credit are used rather than the Gold Eagle make the picture very clear.
If the banks along with government regulations can force all money to remain in the banks, the banks can use that same money several times over.
Plus if things really go bust, they will seize the money just as the government and banks did in Cypress.
But short term, they can use your and my money to refinance their debt and postpone the day of reckoning.
If depositors all over the world were to accept negative interest rates as their ROI wouldn’t that indicate that deflation is now predominant?
Good observations. My guess is that there will be a huge bloodletting, devaluation, and adoption of a worldwide currency. How each country lands in this mass realignment will impact geo-politcal events for hundreds of years.