97% of the money in circulation today is backed only by debt: each time a bank issues a loan, money has been ‘created’ out of thin air.
97% of the money in circulation today is backed only by debt: each time a bank issues a loan, money has been ‘created’ out of thin air. Much of this money is then invested in speculation – bets on corporate stocks, the fluctuation of exchange rates, and the price of agricultural commodities, to name a few. The ‘phantom wealth’ thus generated is totally unconnected to the creation of anything of real value or utility.