Money is Debt

// October 2nd, 2007 // fun

I saw this video the other day and was pretty shocked at what it showed me. When you are done with it, you sort of feel like you should have known all along what the heck is going on with “money” in the world, but in all honesty, I doubt many of us truly realize it.

The bottom line is this: Money is created out of debt. When you go take out a loan on your house from a bank, that bank basically gives you money it creates FROM the loan you just asked for.

It’s not like they have $200,000 in the bank, and when you ask to borrow it, they give it out and suddenly have $0. Nope. They basically create money out of thin air.

All our money today is created from debt. Without debt, there would be no money. The really sad thing about it is we have to pay back interest. Well, interest is above and beyond the debt that was created before, so there is no way all debt could ever be paid off.

I know, it sounds weird and strange, but the more I read and hear reactions to this video, it absolutely is true. The funny thing is, the fact that we have a nation debt is because it helps keep the economy every growing upwards, because without debt, there would be no money.

Now, I don’t know about their solution to the problem, but it is interesting. The video is 45 minutes long, so it’s not an easy thing to watch. But I promise you, it’s eye-opening and shocking. Maybe take a lunch break at your desk and check it out.

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