Coins can be used either directly or by direct backing (ie. the original notes were gold backed) but there is no perfect system, the point is the current FIAT operations have clearly been compromised by politics. We have negative rates now, if that isnt an alarm bell for you then we are never likely to wake up before we hit the water and get a cold sharp shock of reality. The central banks have not devised a way to defy gravity, we're going to go lose what we gained go down where we went up.
Issac Newton famously had a part in establishing laws of gravity, not as many people know he also had a part in the original gold standard. I respect him on both fronts, I do not respect the modern measures and innovations will not benefit us or last as long as hundreds of years. We are going to see failure and reversal and some how it will be for the benefit of mankind and business done but also its going to upset us all short term
central banks have the right to print paper money in the amount of an increase in national gross income. So this is not a scam, it is the laws of economics
A Central bank backed by a government, by a military can do whatever they like. The point is whether it will fly, can be forced to stay up indefinitely and the actions taken in the last decade cannot continue even by force. If various dictators could not force monetary policy while killing tens of millions of their own citizens then I dont see how any current big government can do any better and I would hope at some point they will stop the force not try to repeat its mistakes. There is no productive gain from QE, it undermines business and society in the end. If the central banks could follow their own rules, they would reverse and end QE programs so all debt created was reversed and paid off but they cannot do it. The net sum of QE and central bank policy is negative and this is true by their own admission. Politics says it is all necessary and in end we have no choice, competitive capitalism would say business will always favor the better more efficient system and that is what I expect to happen. Like the flow of a river, we will find a more natural path then the diktat of politics.
The laws of economics are not man made, this is the bottom line where I possibly disagree with everyone else on this topic but everything I know as true is about natural phenomena of which human society is a part, not an absolute determiner.
https://mises.org/library/inflation-and-fall-roman-empire
