Jim:

> I see the central bank as backed by the coercive power of the state
> (which created it, after all). Only with that backing can the central
> bank "owe money to itself" and have it count as money.

No disagreement here. Did I say anything to the contrary?

> In the US, we had convertible commodity-backed paper money during most
> of the time before 1913

Without a central bank or, at least, without a continual entity acting
as a central bank, right? Don't know the pre-1913 US monetary history
that well. Who issued the money in the US back then and who was going
to pay that commodity?

I am just curious.

Best,
Sabri
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