Good article explaining how most of the money in circulation is created by private banks out of thin air. The only major inaccuracy I found relates to the outdated claim (which originated with Adam Smith) that money developed out of barter. David Graeber and other anthropologists have totally debunked this myth. Barter was extremely rare in most primitive societies. As described in the Old Testament, ancient credit/debt schemes preceded the development of coinage and are the true origin of our current money system. See Debt
No one is immune to debt, and the majority of us are in some form of financial debt (1, 2, 3). Studies show that not having enough money, and especially being in debt, causes serious physical and mental distress (1, 2, 3). This article investigates why banks put people into debt, and uncovers why a world without any debt is completely possible.
In those days, people would deposit their gold for safe keeping with the goldsmiths who issued a piece of paper (or promissory note) for the gold stored. The goldsmiths then loaned the depositor?s gold out to others…
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