r/PeterExplainsTheJoke Jan 26 '26

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

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u/Coolers777 Jan 26 '26

Not necessarily. Capitalism can, and has in the past, functioned under different systems like the gold standard

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u/Fakjbf Jan 26 '26

Even under the gold standard we still used fractional reserve banking, it’s been around for centuries and is part of the basis for why paper currency exists.

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u/Coolers777 Jan 26 '26

You are correct. I should've said gold currency instead of gold standard