I’ve been listening to an awesome book called The Creature from Jekyll Island recently and it’s been fascinating learning about the Federal Reserve and related entities.
One point I was reminded by the book was that when you take out a loan from the bank, they create the money out of thin air. That’s right, the money didn’t exist.
When you pay back the loan, the repaid money disappears into thin air and only the interest paid remains.
Something new I learned however, is that if every person in the world paid back whatever debt they owed, there would be zero money left in the world. Zilch.
All fiat money is someone’s debt.
One point I was reminded by the book was that when you take out a loan from the bank, they create the money out of thin air. That’s right, the money didn’t exist.
When you pay back the loan, the repaid money disappears into thin air and only the interest paid remains.
Something new I learned however, is that if every person in the world paid back whatever debt they owed, there would be zero money left in the world. Zilch.
All fiat money is someone’s debt.
-Ben