Fiat Money, What Is It?

admin Banking, Fiat Money, The History Of Money 0 Comments

Fiat Money Money is a very obscure and almost supernatural topic for most people. Hardly anyone actually takes the time to understand how the monetary system actually works, how new money is created, and what role the Government actually plays in this process. If you don’t know much about these things you will be absolutely stunned when you first learn how it all actually works. To start with we need to understand how the current debt-based money system works and how it is rigged in all ways possible. The least of our problems is related to the fact we use fiat money. The short video below explains some important things you should be aware of. To sum it up rather quickly, most of the money in our economy actually represents a debt to the banks. What essentially happens is that banks loan out money which they do not have. Via the magic of fractional reserve banking they can loan out nine times as much money as they actually have in their reserves. When you get a loan the banks don’t actually take it from other accounts, so new money is created in the process. In other words: the more debt …