faust9 said:Actually, yes. Industrialized nations rely on their respective central banks(ours is private but regulated here in the US) to regulate the amount of 'currency' in the system. Our money is not backed by a resource outher than the good word of the US as a good debter. In fact, there is even a term for the 'magical' creation of money from nowhere except the whims--educated as they may be--- of the central bank. It's called fiat money. http://www.investopedia.com/terms/f/fiatmoney.asp
Money in this day and age has no intrinsic value thus the creation and use of it is 'magical'. Money is only as valuable as WE allow it to be. WE accept that $20,000 is a fair amount for a New Beetle of Mini and WE accept that working for $15/hour is a fair trade for labor. The money itself is worthless---that is why some people place more value in money than others. Some people have to seemingly work harder for their money than others and as such assign more sentimental value to that which is essentially worthless. Pretty 'magical' if you ask me.
No, our discussion wasnt about the backing of money, it was burnsys claim that say, your local bank of america branch can just instanly open an account with say, a trillion dollars and give it to someone without any recourse. They never needed to have that trillion dollars in the first place according to burnsys so someone could just open a bank with no connection to the outside world and magically produce 1 trillion dollars for the first person who walks in. Magic in my eyes