Reply #18: It's both fake and real. It's important to remember that economics is a social

[mudplanet]

science, not a pure science like mathematics. It's about what people will do with money, goods and services.

Money isn't real. And paper money isn't any "more" real than 1's and 0's in a computer (it's just a little harder to steal). It only has value because we agree it has value. In itself, it's only value would be as a fire starter, and then only when it is in paper form. But don't try to tell that to someone who is hungry and needs to buy food, or needs money for their rent. Then money is all too real.

That's why so many people can get away with the idea of returning to a gold or silver standard: that way their "money" actually represents something of value (however questionable: gold and silver's real utility is as dental fillings and electrical conductors) that they can lay their hands on and possibly swap for something they need.

To get an idea of the inherent value of money, read any good science fiction novel about the collapse of civilization. Stephen King's The Stand would be a good one. I found it entertaining.