[codersfocus]

You are using a basic understanding of economics then.

You need to understand economics as the metabolism of a larger organism.

This isn't just a hypothetical argument, it is reality. Let's take the digital device you're reading this with as an example. It's not created by any single craftsman. It is the result of millions of people's work. It is a "metabolite" of a larger organism.

You are a node or cell in a larger thing. Everything you know and can do is largely tailored to this system you're currently in.

Consider you are time-teleported back 10,000 years and come across a tribe of humans. Who would be more valuable to whom? Is your understanding of any of the technologies you presently enjoy sufficient enough to reproduce from scratch? Maybe a couple things, but they would most likely have a lot more to teach you than you'd be able to teach them.

I realize the above is very abstract from monetary policy, but the correct premise needs to be set before digging down.

Once you model economics as the metabolism of a larger entity, money reveals its true nature: to control what activities are performed by / within the organism.

There's no such thing as "intrinsic value" -- there is only a medium of exchange or signaling. This signal should not be tied to any physical thing, as that is inefficient to the state of an economy. There are better ways. Imaginary units are a more powerful tool, as they are not constrained by any physical limits.

You may be upset at how these IU's are currently handled, and rightfully so. The current methodology we have is very primitive. Our experts themselves (head of the Fed, treasury) readily admit this. When they take actions they "think" or "expect" it will have this or that effect. And the levers they pull are also very blunt.

When CBDCs come online, then we will start to realize a better economy. They will allow more granular control of things.

[cheeseomlit]

Money is a convenient means of exchange and valuation, I don't see the reason why my membership in society (node or cell in larger organism) should require that means of exchange to be imaginary- and I disagree that intrinsic value does not exist, though it may vary in the eye of the beholder. If I approach this stone-age tribe from your example and attempt to trade with them they will not accept my dollars for their goods- to them my dollars are kindling at best. Very little intrinsic value. But a physical commodity perhaps they would accept because it has some actual real-world use to them. Why should one party trade actual useful goods and services in exchange for imaginary numbers? Wouldn't it make more sense for trade real goods for real goods, provided one party's goods are viable for monetary use and can be reliably used as a means of valuation?

I won't argue that imaginary units of money are a powerful tool, they certainly are. So powerful in fact that there is no human on this earth who can be trusted to administer it without rampant abuse. The history of centralized planned economies speaks for itself, and I don't think further consolidation under CBDCs with more 'granular control' is going to improve its track record. The physical limits that constrain the use of commodities as money are what make it a viable as currency, it's a feature not a bug