The Illusion of Money

The dictionary defines the word “counterfeit” as being made an imitation so as to be passed off fraudulently or deceptively as genuine; also as not genuine; forged; pretended; unreal; obsolete; imposter; and pretender. Knowing the definition of this word; is it counterfeiting when government-licensed banks create money out of nothing? In other words is it deceptive and unreal when government-licensed banks create money based on air or debt and not on gold?

Let’s go back to the beginning. Before there was money, barter was the system people used in order to exchange goods. Once people saw that gold and silver was valuable to their eyes, they began exchanging goods for gold and vice versa. Until the government realized that they could take control of this system.

They offered fiat money which is the paper money with the people’s faces on it. This fiat money would be based on the amount of gold they had. For example, people would save their 10 coins of gold in the bank, and in return they would receive 1 paper with a 10 dollar sign on it. This would back up the amount of gold or money they had in order to make an exchange for goods and services. As time went on, banks began to realize that they could make money based on the loans they gave out, even though they did not have that money yet. This began to create a high debt, but as the bank gave more loans, the more money they created based on those loans, which eventually it ended up being based on the debt. In short terms, the more loans, the more creation of money, the higher the debt, and once you begin asking yourself where this money came from, you realize it came out of the debt of the loans.

This means that when the government-licensed banks create money, it is not based on the amount of gold the country has, but on the amount of debt it has. Disgracefully, everyone else believes the illusion that based on the amount of paper money they have is how rich they are, when that fiat money is really worth nothing. Money as an illusion is worth what you value it, but as the truth it is worth nothing. This is why it is counterfeiting when government-licensed banks create money out nothing. They are making the role of the imposter that says the economy of the society is growing, when the debt is the one that is really growing. However, the most tremendous and impacting truth is that we are the ones that let this keep on going.

Money, Banking and The Federal Reserve:

Kingdom Riches

Society’s Problems: Part I

Price Controls / Money and Its Origin

Categories: Economics | Tags: , , , , , , , | 10 Comments

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10 thoughts on “The Illusion of Money

  1. Awesome job Jada! P.S. Remember me?? xD

    Liked by 1 person

  2. very interesting!

    Liked by 1 person

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  4. Like

    Liked by 2 people

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