“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
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 enslaves the society.
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.
Because money to pay the interest is not created at the same time as the loan is enacted, the money to pay the interest must be borrowed. It generally isn’t the same person taking out the loan that borrows the interest money, but somewhere in the system, someone borrows that money and it circulates back to the person who needs to pay the interest. Creating money this way is a negative sum game. It takes more to keep the game going than is put in.
Goals
This site is devoted to examining the problems created by this method of creating money and looking for viable alternatives. Because bankers have spent over 300 years setting up this system to the point of its adoption by nearly every country on Earth, I had come to the conclusion that I could only document the problem and leave it for posterity to set up a new system.
I have recently uncovered a reason for optimism that our current system can be unraveled. The bankers may be persuaded to unravel the system themselves. The hard part will be to find a suitable alternative.
The reasons require more than can be covered in this simple “About” page, but read the blog posts as I make the case. Start with the post, “Government Spending.”