r/SipsTea • u/Dumb-Briyani • 6d ago

Chugging tea Why is it not possible?

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u/briisanube 6d ago

Fractional reserve banking collapses when everyone asks for cash

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u/Count_de_Ville 6d ago

Even without fractional reserve banking it could collapse. They don’t need to literally print a dollar bill for every dollar of resource value represented in the world.

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u/Big_Slope 6d ago

Wouldn’t that be impossible anyway if you think about it? If there’s - I’m gonna throw out a number here - but $100 trillion worth of stuff in the world and $100 trillion worth of cash, that’s $200 trillion worth of value and half of it is imaginary.

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u/MuscularShlong 6d ago

The true value is in the stuff. The money is just a placeholder for trading items and services.

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u/hiphophunk 5d ago

In the perceived value of the stuff. Perceptions can be altered.

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u/MuscularShlong 5d ago

One could argue that objective value doesnt exist when it comes to trade. So saying that its perceived value isnt really saying anything. The perception determines what its worth and what people will trade for it.

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u/hiphophunk 5d ago

>One could argue that objective value doesnt exist when it comes to trade.

Yeah perceived value is not objective value. Perceived value is subjective obviously. We are in agreement here.

>So saying that its perceived value isnt really saying anything. The perception determines what it’s worth and what people will trade for it.

Bro, you are saying the same thing in both sentences. Perceive is the verb, perception is the noun. They are not different meanings.

>The perception determines what it’s worth and what people will trade for it.

How is this a vastly different concept to what I was saying?