Economic Emancipation: How Money is Created
Today is the day that “We the People” celebrate our Independence from the oppression of the British Crown.
In the midst of the fireworks and the Patriotic Symbolism, heed a word of caution:
Don’t let the propaganda fool you!
In the “Land of the Free” we’re more enslaved now than we were back then. The fact that most people don’t understand this is testament to just how well we’ve been deceived.
Following my last post in this series, What Is Money you hopefully now understand what money is.
Money is a socially accepted medium of exchange.
Next, we will take a look at how money is created in our current economy.
This is the part where people tend to get lost, confused and simultaneously pissed off, all at once.
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This happens for 2 reasons, according to economist John Kenneth Galbraith:
The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.
and
The process by which banks create money is so simple that the mind is repelled.
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- If you go to Zimbabwe and you ask the good folks there
“what is money?”
they're going to open their wallets and pull out their Rhodesian Dollar.
- If you go to Argentina and ask any random person
“what is money?”
He or she will open their billfold and pull out their Pesos.
- If you go to Russia and ask the common person
“what is money?”
they will reach deep into their pockets and pull out a handful of Rubles.
They Know It When They See It!
If you ask the average person, no matter what country they're from, “what is money?” they will show you what they use for money but have no clue what money really is.
Most people probably have never stopped to consider such a question before.
Much like SCOTUS Justice Stewart said in a famous free speech case surrounding the lawful description of obscenity, most will pacify themselves from any further inquiry by saying
I know it when I see it!
Most likely, this “being kept in the dark” has been on purpose, just as Galbraith insinuated in his quote above.
For if the average Joe begins to understand exactly what money is they will also begin to connect some serious dots as to how money is created.
Once a person understands how money is created the walls of deception begin to crumble and the veil of lies that has shrouded the quasi-governmental banking system is torn away revealing this simple truth:
Money is created out of thin air by leveraging your pledge to repay debts. In short,
Debt = Money.
For centuries the creation of money has been in hands of a few elite bankers.
Every time a person or a business borrows money from a bank the money is literally brought into existence out of thin air. It is a perceived value exchange because you pledge to pay what you owe back. It is your pledge to pay this money back that gives it it's value.
But wait, you may ask:
"If the Banksters create this money out of thin air why do they have the right to control who gets it and why do those who borrow it have to pay back the principle with interest?"
"Who gives them such a privilege?"
Why our politicians do, silly rabbit, and you can bet that they are handsomely rewarded for their faithful cronyism.
The greatest fear of the Bankster elites and their lapdog politicians is for the masses of humanity to wake up to this privileged system of control and refuse to cooperate in their own enslavement any longer.
Thanks to the advent of Cryptocurrencies, more and more people are waking up to this truth and are choosing to fight back by creating their own currencies. Why borrow made up money with interest attached when you can start your own currency on a blockchain interest free?
After all, money is just a socially accepted medium of exchange. The more society accepts the practical value of Crypto, the more it will be used to emancipate debt slaves.
The concept behind Crypto is Promethian in scope.
Cryptocurrencies will do for economic freedom what the internet did for delivering information.
Please watch the video below for an in depth look into how money is created. Once watching you'll begin to understand just how revolutionary Steemit really is.
Thanks for Reading!
As Always,
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"Cryptocurrencies will do for economic freedom what the internet did for delivering information."
I would go a step or 2 further here:
CC will do for economic freedom (routing around the federal reserve and USD) what the internet did for freedom of information, (where our government could no longer lie to us daily about what we should believe about our reality), and route around governments for our sense of purpose in life, while helping humanity completely structure society as it resolves how human life could best complement our own planet Earth's needs.
Thanks for extrapolating the concept. I agree. Perhaps you should do an in depth look at this in a separate post. I would really enjoy reading it.
OK, done!
https://steemit.com/steemit/@surfyogi/economic-freedom-and-the-new-beginning-restructuring-world-society
I really like your ideas. I think this is a very positive light in which to promote a new idea for exchange. We can call it currency, money, many things, and we can argue how to go about discussing it and what these terms actually mean.
I really enjoyed your article; one of the best I've seen, educational.
Thankyou.
great article. follow you
You are wrong. You have to replace the word money with the word currency and then you will have an accurate article.
Can you enlighten me as to what the key differences are to "money" and "currency"? I for one, see them as interchangeable in the vernacular. But, I've been wrong before, or was I just mistaken? Either way, I'd like to hear what the differentiation is in your opinion.
Currency has value almost purely because people believe it has value. Money has actual intrinsic value. One example is Silver. It has been used as money for a very long time, has industrial applications and has healing properties etc. Compare that to the US dollar which is a fiat currency and has no intrinsic value and in fact loses a lot of value every year. Of course some years are worse than others but the fact remains, all fiat currencies return to their original value which of course is zero.
The concept of 'intrinsic' can lead to further debate. Isn't value in the end just the value we, humans, assign to it? For some more musings about this: https://steemit.com/cryptocurrency/@wekkel/bitcoin-price-is-that-air-you-are-breathing
But good comment.
I read your article. Well done. I agree that money/currency is all based on belief driven by pragmatism. As long as CC "works" people will continue to believe, even without a central shepherd.
I continue to be amazed at the low threshold needed for people to start cooperating on the basis of a token (virtual or physical). This is probably closely tied to our social nature and the need/desire to cooperate in groups. Indeed, a central shepherd does not seem imperative for this phenomenon to occur.
It's a belief system based on pragmatism. People believe that token will be gain for them so they cooperate.
Commodity money is harder for the State to control than its monopolized fiat system it uses now. Crypto scares them more than almost anything else, perhaps more even than commodity money like the Liberty Dollar should it catch on. After all, there's no vault to raid in a distributed blockchain system.