Money As Debt

 Posted by on 2008-06-03 at 11:53  Economy, News, Politics, Video  1 Response »
Jun 032008
 

I find that most people do not understand how money and credit work, how it came to be, and why the economy functions as it does. These are basic concepts that aren’t really taught in school. It’s amazing that when you try to explain these things to people, their eyes glaze over and they are not interested, despite the fact that virtually everyone living in a capitalist society has to handle some form of money.

I think most people would be amazed if they found out that banks create money out of “thin air”, most would even disbelieve the concept. Banks create money out of debt. When you go to take a loan from a bank, you are not borrowing on someone else’s savings, the bank is basically printing the money on demand. Our economy survives because people are in debt. If all debt were to be repaid, there would be virtually no money left. It boggles the mind.

The following video “Money As Debt” breaks down how our money system works in simple terms, that is easy for anyone to understand. I believe everyone should watch this video at least once to gain a basic understanding on how the monetary system works, and what it means for you and your family. This video simply lays out “how it is”. Enjoy.
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