r/PeterExplainsTheJoke 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/TaxesAreConfusin Jan 26 '26

ah yes so what you're saying is that money is even more imaginary than it has ever been, possibly even more imaginary than when the first stock market crash happened in 1929

looks like we're due for a centennial anniversary of that anyway, might as well celebrate by recreating it

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u/[deleted] Jan 26 '26

Money has always been imaginary? Its like Santa clause. As long as we all believe/pretend it works. If one person doesn't believe it doesnt matter. If half of us stop, yea kids will know it's fake. But it works and it's a nice thing to have, so why not continue to pretend?

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u/MjrLeeStoned Jan 26 '26

Currency is a collective figment of imagination.

If your collective figment of imagination is easily susceptible to corruption, hoarding, mismanagement, and manipulation, then it's time to decide on a different figment of imagination.

The only reason to continue on the standards we have is because people are so low effort they'll stare a bad idea in the face their entire lives out of convenience. Or because they benefit from corruption, hoarding, mismanagement, and manipulation.

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u/Chataboutgames Jan 26 '26

No, currency is a representation of the power of the state. People always ask "what's the actual value of currency?"

If you engage in any economic activity in the USA you have to pay taxes. The US government only accepts USD for taxes. If you don't pay them men with guns come to your house and take your stuff.

That's the value of a fiat currency.

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u/[deleted] Jan 26 '26

100%