Great story I'm gonna check it out ... Interestingly, though, all money is virtual. In fact, you can think of a currency as a unit of account the same as a metre is a unit of length.
Even in currencies which have notes and coins they only make up a single digit percentage of the total volume of money.
When governments spend, they do so by crediting accounts at a central bank account (ie. They spend their own currency into existence) and taxation is the opposite of this.
The upshot of this is that governments don't need to tax before they can spend (in fact it's the opposite), are not constrained in their fiscal policy by "raising revenue" and have danger of insolvency so long as they only issue debt denominated in their own currency.
Even in currencies which have notes and coins they only make up a single digit percentage of the total volume of money.
When governments spend, they do so by crediting accounts at a central bank account (ie. They spend their own currency into existence) and taxation is the opposite of this.
The upshot of this is that governments don't need to tax before they can spend (in fact it's the opposite), are not constrained in their fiscal policy by "raising revenue" and have danger of insolvency so long as they only issue debt denominated in their own currency.