This is question begging to say the least. Political obligation [0] is "the moral duty to obey the law". Debt is money owed to someone [1]. Is that a political obligation? Yes, if the laws concern themselves with debts. But what if the law didn't concern itself with debts do you cease to owe money to someone? Not if they are able to enforce the contract of the debt in some other manner.
> Banks are simply professional lenders. If the transaction were purely numeric and not political they'd be peripheral to the economy instead of central to it.
Yes, state intervention in money markets is of monumental importance in achieving the system we have now. But it wasn't always like this and those systems were far from peripheral [2]. Free banks put themselves in debt every time they issued currency and the state was absent from the interactions.
To clarify, I'm not advocating against the state's importance in defending debt money. The free banking days of multiple competing notes was one of volatility and disastrous crashes. What we have now is strictly better than before. But to say that fiat currency "comes from the state" as OP did is simply not a historical fact. Period.
This is question begging to say the least. Political obligation [0] is "the moral duty to obey the law". Debt is money owed to someone [1]. Is that a political obligation? Yes, if the laws concern themselves with debts. But what if the law didn't concern itself with debts do you cease to owe money to someone? Not if they are able to enforce the contract of the debt in some other manner.
> Banks are simply professional lenders. If the transaction were purely numeric and not political they'd be peripheral to the economy instead of central to it.
Yes, state intervention in money markets is of monumental importance in achieving the system we have now. But it wasn't always like this and those systems were far from peripheral [2]. Free banks put themselves in debt every time they issued currency and the state was absent from the interactions.
To clarify, I'm not advocating against the state's importance in defending debt money. The free banking days of multiple competing notes was one of volatility and disastrous crashes. What we have now is strictly better than before. But to say that fiat currency "comes from the state" as OP did is simply not a historical fact. Period.
0: https://plato.stanford.edu/entries/political-obligation/ 1: https://en.wikipedia.org/wiki/Debt 2: https://en.wikipedia.org/wiki/Free_banking