✨Money creation happens through the fractional reserve banking system.
💸The more money there is, the more debt there is, and vice versa.
💰Existing currency is devalued when new money is created out of debt.
💡The monetary system is unsustainable and built on a chain of debt.
🔄Inflation is caused by the expansion of the money supply without proportional economic growth.
How is money created?
—Money is created through the fractional reserve banking system, where banks can create money by making loans.
What is the relationship between the national debt and the money supply?
—The national debt and the money supply are interlinked, as every dollar in circulation is owed to someone. Increasing the money supply increases the national debt.
What is the impact of money creation on existing currency?
—When new money is created out of debt, it devalues existing currency and leads to inflation.
Is the monetary system sustainable?
—The monetary system, built on a chain of debt, is unsustainable in the long run and prone to financial crises.
What is the cause of inflation?
—Inflation occurs when the money supply expands without proportional economic growth, leading to a decrease in the purchasing power of each individual dollar.
00:15Money creation happens through the fractional reserve banking system, where banks can create money out of thin air.
05:01Increasing the money supply without proportional economic growth leads to inflation and a decrease in the value of existing currency.
08:27The total money supply is directly related to the national debt, as every dollar in circulation is owed to someone.
11:00The fractional reserve system of monetary expansion is inherently inflationary, leading to the devaluation of currency over time.
14:32Money is fundamentally debt, and debt is money. Paying off all debts would eliminate all currency in circulation.
