This is an interesting thought experiment but it has no connection with reality. Money isn't created or issued by someone deciding that everything is worth whatever. It's like saying "imagine all metres were an inch long". That won't make everyone think it.

So in the real world, where real things happen, this isn't near true. Money is created when banks issue loans. Banks issue loans based on market forces and do so without government permission and do so whether they have reserves or not. In fact, in reality anyone can create money, and people do every time they issue an IOU, the difference is whether a third party would accept them in exchange for things. Saying money is independent of trading is like saying debt is independent of trading: nonsense.