Our money system is not what we have been led to believe. The creation of money has been “privatized,” or taken over by a private money cartel. Except for coins, all of our money is now created as loans advanced by private banking institutions — including the private Federal Reserve.
Governments answer to these private (and not very visible) cartels, and just love to mess with the money supply, because it’s an immensely profitable activity.
One school of economic thought, the Keynesian School, think that’s a great idea.
The other school of economic thought, the Austrian School, says the government should stay the heck out of manipulating the money supply.
Why?
Because it doesn’t work in the long run. The piper always has to be paid and in the meantime, the waste and excess that is spawned during bubble times is not good for society or real wealth building.
Fractional Reserve Banking
Here is a fantastic Big Picture video explaining how our banking system works:
Keynesian School vs Austrian School Thinking
This entertaining – and informative – video explains the two major theories of modern economics.
One, Keynesian, says when you run into trouble, print more money. The other position, Austrian, championed by Friedrich Hayek, says “not so fast.”
I live as if the Austrians are right and, if you ask me, I recommend that you do too.
No answers, but it’s good to know the questions.
Recommended Resources
Confessions of an Economic Hit Man by John Perkins
Ken McCarthy’s Independence Day Blueprint
If you've enjoyed what you've read so far, you'll certainly enjoy my big-picture thinking in the booklet The 2012 Manifesto. You can read more about it here or just click on the big-ass Download button below and I'll take you straight to the download page.
I am a global roamer, soul-searcher, contrarian who has challenged the norm since 1975. My goal is to connect with other world-changers to help make sense of life in an increasingly senseless world. 
. Thanks!
