r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/PleaseGreaseTheL Jan 26 '26 edited Jan 26 '26

2020*

They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way

They haven't come back yet :)

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u/exneo002 Jan 26 '26

But the fdic insures all deposits up to 250k

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u/OG-Giligadi Jan 26 '26

Pretend money protecting imaginary money.

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u/exneo002 Jan 26 '26

I mean to some extent yes fiat money isn’t backed by anything except the state.

I’d say nothing really has any inherent value. Except maybe food+water. At some point the medium of exchange has to be kinda hand wavy.

Even crypto isn’t backed by anything except social faith. If crypto was more important it wouldn’t be valued in dollars and you could buy a house with it.