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NOTE When was the first government paper money?

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The first government paper money ever was 1690 in Massachusetts.

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Before that, gold was money.

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The only way the government could do anything was to clip the coin, to base the coin.

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When paper money comes in, the great new invention for the government means you could just print money and live.

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Essentially, John Law, the Scottish adventurer, just gets a hold of the royal government in Paris and convinces him he should be the central banker and print money.

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And through unlimited inflation, you can wipe out the public debt, you can bring prosperity and all the rest of it.