“It is well that the people of the nation do not understand our
banking and monetary system, for if they did, I believe there would be a
revolution before tomorrow morning.” Henry Ford
Updated 10-2-2024
The impetus for this website began in 2008 when I went from a couple million dollars in assets to half a million dollars in the hole. I started studying the causes of the recession. It didn’t take long to zero in on a fundamental problem with our entire money system. All money is created as debt. This means there is never a way to totally repay debt.
Money Creation
When a bank extends credit to one of its customers, the debt document is recorded as an asset to the bank while the money placed in the customer’s bank account is a liability to the bank. There is now money available in the economy that wasn’t there before the loan was completed—money from nothing.
This begins as a minor problem but by the time debt has risen to the levels they are today, $34.1 trillion, an average interest rate of 6% will cost about $2 trillion annually to maintain the money supply. The average interest rate between 1947 to 2008 was 6%.
Goals
This site is devoted to examining the problems created our current money system. There are more problems than just the underlying impossibility of repaying debt. And Central Bank Digital Currencies (CBDCs) are waiting in the wings to try to solve some problems, but will create others.
Read the blog posts and examine the information on the “Economic Research” page. There are solutions.