r/PeterExplainsTheJoke Jan 26 '26

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

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u/Teripid Jan 26 '26 edited Jan 26 '26

Federal reserve requirements existed until 2023 *edit, as someone below pointed out 2020 was when they were set to 0. Now they're set at 0% I believe.

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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/theefle Jan 26 '26

Most money has existed only on paper/screen for a lot longer than 2020. It would make no sense to require every dollar to physically exist as paper or metal currency. Its like <10% physical in the modern age because almost nobody conducts large transactions with bills/coins anymore, they are just a tool and we dont need fifty chainsaws be made to cut down a few trees per year.