Where Does Money Come From in the Modern Global Economy?

23 Jan

Taking another fresh look at the money creation system in a debt based privately controlled banking system.

While this is taken from the UK perspective it is absolutely accurate across the entire world and especially in the US – of course through the private banks of the Federal Reserve System.

Note that he perfectly accurately describes the housing bubble as the increase in money through loans in the system – as in there was NO increase in VALUE. Welcome to the destruction of the housing market still going on today.

Only 8% of the loans created to create money as banks do, is going to anything productive in the economy. 92% is going to speculation and gambling… And we are paying interest on all that money being leant out to create money into speculation. We call this a recipe for collapse.

This sort of money supply led by lending into existence funds for speculation is what creates the boom and bust cycle and ultimately means that within this system we will never have a stable monetary system. Seems logical enough to us.



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