The problem is as soon as you throw debt and rents into the mix it all blows up, because debt and rents are &#x27;paper&#x27;<p>If I loan creshal $5000 at %5 interest, I have basically a note on $500 worth of income a year. I can turn around an use that note to buy something. Now someone else owns the debt worth $500&#x2F;yr. Until the crisis hits, creshal loses his job and flees to Argentina and now that note isn&#x27;t worth diddly.<p>Short: Modern economies are rife with way to turn physical assets and rent streams into something akin to cash. So even if you think you&#x27;re on a gold standard, you aren&#x27;t really. Your on a gold + this bond entitles the holder to £500 per annum from the Village of Shlopshire. (Because in 1804 the village borrowed money to replace a bridge)