Prompt: “Is it counterfeiting when government-licensed banks create money out of nothing?”
The gold backed standard allows the free market to have control over a limited supply of wealth. Under this standard there is no fiat currency, all the money in circulation is backed by gold. Government licensed banks, such as the federal reserve, have the power to print all the money they see fit without the restrictions of a limited gold supply. I wouldn’t necessarily call this counterfeiting, as it is legally backed. But it does pose the threat of inflation if the fed prints out more money than our economy can afford to support.