Wednesday, November 16, 2011

Lucia Our economy is built on fake money

After reading some of Ian Wishart's new (old and updated) book, Daylight Robbery, I find myself thinking even more that this election is a farce. So, not a lot of election excitement going on in this corner.

Have a look at the excerpt: PDF link.

In summary, the situation seems to be that our entire economy is built on fake money that is mostly brought into existence when it's loaned to some one. That debt for most of us will only be paid off at the end of our working lives - and maybe not even then. Most of us don't really own anything, the banks do. That's why the whole thing can collapse so easily.

To think that when I was a child, my Dad took on a second job to pay off the mortgage. And he did, in two years. Not a chance of my family being able to do anything like that any time soon and we earn more money in relative terms than he ever did.

ZenTiger has posted about this stuff before, so it's familiar. When I find one of his posts on this topic I'll add it as a link.

Related link: Ian Wishart's new book released for the election campaign ~ TBR

1 comment(s):

ZenTiger said...

Here's a post I did about this years ago. Now I'll have to review it and figure out just what the actual story is around fractional reserve banking, given the variation in the comments.

Money from thin air

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