Hey Josh, it's Josh. Correct me if I'm wrong here. I vaguely remember watching a short documentary when I was a kid where they used cartoon like pictures to depict about how monetary note was created. What stuck with me, all these years, is that monetary note was created by banks to support the gold rush in the USA during the 1800s. Back then, people couldn't scrape off a nugget off of a gold bar to pay for goods and services. Depositing a brick of gold wouldn't be efficient in a bank. So they created monetary note that was backed by real gold that the banks were holding. Monetary was efficient back then. Now adays, debit cards are used.

If my childhood memory is correct, I don't think all of the banks in the world can back trillions of dollars of monetary note that is in circulation. They just kept on printing note which leads us to this scenario.