I have often marvelled at how anything aquires value. An object is worth exactly what you can get someone to pay you for it. Therefore all 'value' is, is a consensus opinion on what something is worth. This can be quite unrelated to the costs associated with producing the said item.
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So while it is true that we have been selling vapor for the last 30 years and paying for it with equally gaseous currency, as long as there is a sufficient consensus to agree that the illusion is worth maintaining, then it will remain in everyone's interest to continue to insist that the Emperor's outfit is resplendent. That is why I don't think our economy will actually collapse. It's built on a psychological effect for its foundation and there are too many vested interests who will do whatever is necessary to maintain their position.
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