Have you ever thought about what stands between you and a head on collision when you drive? The thing that saves you from being maimed or killed by another driver? It's just a blob of paint. A dashed or solid painted line that most drivers have agreed is the delineation between your place and their place. A laissez faire arrangement without any real protections in place to keep you protected from disaster in any real sense.
Our money, in essence works in the same way. The only thing keeping our money at its current value is shared agreement by most of society that it is worth something more than the paper we print it on. A small shift in perception is all it would take to make my cash reserves more useful as fire starting material than for trade.
And this is not just as regards the paper stuff. Silver and gold work the same way. What is an ounce of gold or silver really worth if no one in your community needs it? It becomes a shiny trinket or interesting paper weight.
And the numbers in your bank account? What are they really? $10,000 is just some ASCII text in a web portal or printed on a statement if no one agrees that it is OK to use this promise against a tangible asset they wish to sell to you.
Thank goodness for faith! 🙂
On no particular schedule, I take a walk. Each time this happens, I have a thought. This is Nicole Sauce's Thought of the Walk