Rehashing Paper Money Debt

 When you take out a loan at the bank, they counterfeit the principal then demand real money as interest. Counterfeiting causes inflation.

 Fiat warlocks will claim it's not truly counterfeiting because they poof the principal back out of existence again when you pay it back. Inflation matched by deflation. The interest is supposed to pay for operations. 

 They hope you don't think about what happens when someone defaults. The counterfeit money becomes rectified. The bank takes a haircut in expected interest payments. There is no haircut on the principal or in the present. Everyone forgets it's not supposed to be real money.
 They hope you don't think about the fact the whole point of a loan is the delay between selling the loan and paying it off, during which the counterfeit money is in circulation. One sees whole market panics when the loan market contracts because it constitutes a huge deflationary shock. Deflation is good, but shocks are bad. For biology and also markets.

 [Fractional reserve] is a fancy way of saying the bank is only allowed to counterfeit so much money at once. Say 10x their fed funds. However, 1:10 means they can regift 90% of the loaned notes, using loan deposits as collateral for new loans. This converges slowly. At equilibrium the ratio of real notes to counterfeit is around 1:99 at the alleged 1:10 fractional reserve rate. You take out a $100 loan. Then you buy $100 of stuff, and the stuff-seller deposits the $100 at the bank. The bank now makes a new $90 loan holding the $10 as reserve. Deposit 90, new loan of 81. And so on. 

 This means the bank will never run out of reserve space before it runs out of willing debtors. Which is why your bank keeps trying to sign you up for credit cards. It's all upside to them, they're loaning out fake money. 

 

 A long way of saying paper money is fake money and you're insane if you accept this stuff without a gun physically in your face. Mass and wear and clipped coins might sound like a nightmare, but a) acrylic now exists and b) it's not worse than paper money.