Recent discussions surrounding the U.S. monetary system have highlighted the transition to a fiat currency model, which lacks intrinsic value and does not represent tangible assets like gold. A blog post from the St. Louis Federal Reserve elaborates on this shift, noting that while fiat money is government-backed, it has led to criticisms regarding the banking system's failures. Some commentators argue that banks irresponsibly issued more claims for gold than they possessed, which eroded public trust and resulted in the government making gold ownership illegal for several decades. This perspective suggests that the current fiat system is fundamentally a confidence-based arrangement, where a loss of trust could lead to severe consequences. The ongoing debate raises questions about the effectiveness of the fiat system compared to the historical gold standard, which some believe prevented excessive money printing and economic instability.