[cartoonworld]

Today's money is not gold, livestock, gems, or slaves as it has been for thousands of years.

Fractional reserve banking (and the modern electronic economic system) virtualizes currency in a way that would be called a dupe bug in any MMORPG. In our case, it is just a feature of the design.

Local and State governments in the US are dependent on tax dollars (property, sales, excise) in addition to federal subsidies, but the federal government doesn't need taxpayers to fund most of its activities.

Accruing balances of paper is fine, the fiat money is imaginary and propped up by usage convention and some other, stronger things.