* it's just printed out of nowhere by the Reserve Bank -
* then sold to the Government of the day who purchase it by issuing Government Bonds (which are simply promises to pay back the 'money' at a set date) -
* which in effect means the Government has gone into debt which will have to be paid ... but the Government doesn't produce anything at all that makes money and so -
* the Government will gather together the money it needs for the debt by getting the money from those (individuals or businesses) who do make money - by raising taxes/tolls/tariffs et al.
It all seems 'normal and legal' until the people (who end up paying) come to realise the printed 'money' has no value - except on paper.
Then they will start to look for things that Do have real value and eventually will totally refuse to use/pay for the 'paper'.
