[mo_42]

> The problem here is not the gold. The problem is issuing more money than people are demanding. There is nothing wrong with issuing money (e.g. in form of new credit) if people demands credit that they are paying sooner or later. The problem is the government creating new money with zero intention of paying it back, because that fuels inflation.

I don’t see the problem here. Does the government have any intention of paying it back? What would happen if all created money was payed back?

Seems more like created money/governmental debt needs to stay so people have something in their pockets to actually pay for something.