Paper isn’t money, to operate it must come with a decree or fiat.  Mining for gold can be expensive.  The use of a paper currency is much cheaper.  Today, paper serves as a medium of exchange by way of a decree.  It wasn’t selected by freely acting individuals.  Deposits aren’t held in reserves.  They are held as numbers digitally.  Fiat money is constantly increased.  This benefits the debtors at the expense of creditors.

Each piece of paper represents a debt obligation.  Fiat money came into the world as a loan plus interest.  More money is owed than in existence.  Therefore, it’s impossible to pay off the debt under current conditions.  Money printing can never stop.  More money must be printed to pay down the debt.  The house of cards will come crumbling down if money isn’t printed.  You must be propagandized into thinking high prices are a good thing.

The propaganda is never ending so the public never becomes suspicious.  They’ll lose confidence if they do.  They will then try to redeem their deposits.  This will cause the entire fractional reserve banking system to collapse.  There is much talk about deposit insurance, but that’s a bad joke at best.  They will try to increase the money supply without distressing or arousing suspicion among the public.

They want you to think the price rise is temporary.  Havoc will quickly spread throughout the banking community if the public thinks prices won’t stop rising.  The public will spend the money they have on any goods that will retain their value.  This is the flight to real values.  For example, buying a piano with no need because it can be sold at a later date once the previous monetary system collapses.

The bank must go bankrupt, and it already is.  They just keep papering over their financial troubles.  It’s impossible for the debt to be paid off.  Prices will never stop rising.  Inflation isn’t temporary or transitory.  The deposits can’t be redeemed.  They might make it illegal to withdrawal money, institute a cash tax—I don’t doubt more half-baked ideas will be put into practice to keep the house of cards standing.

Reference

Ludwig von Mises; Human Action