The Complexities Of Money-How We Got Here And Where We Are Going
Money is a complex yet powerful force that shapes the world we live in. From private banks to digital currency, the evolution of money is one of the most important stories of our times. In this blog post, we will explore the hidden money system, the evolution of money, the mysterious money-making machine, the art of money-making, the debt trap, and the reality of a bailout economy. We will also discuss how it all led us here and what the future of money could look like. So, join us as we delve deep into the complexities of money and learn how it affects our lives and our futures.
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The Hidden Money System- A Cancer That Must Be Cured
There’s a hidden money system that has been growing more and more complex over the years. This system is responsible for creating the current economic crisis, and if it isn’t addressed immediately it will continue to grow and become too late. The current money system is composed of three main parts: commercial banks, governments, and the treasury.
Commercial banks are the primary creators of money today. They do this through loans and interest payments, which go directly to the treasury instead of taxes. This means that most (97%) of the money in circulation today is created by commercial banks – something that has been hidden from the public for centuries. The consequence of this is that most people are unaware of how indebted they actually are and how much debt slavery truly is.
The current economic crisis is similar to cancer in that if it’s not addressed immediately it will continue to grow and become too late. If we don’t start dealing with the root causes of this problem right now, we will continue to see problems worsen until there’s an outright financial collapse. In order to prevent this from happening, we need honest politicians who are willing to take on these corrupt powers and make changes in our money system so that it serves society rather than individual interests. It’s going to take a lot of hard work, but we have no other choice – our future depends on it!
The Evolution Of Money- From Private Banks To Digital Currency
When it comes to money, we all understand the basics. We know that it’s important to have enough money to pay our bills and buy the things that we need. But did you know that there was a time when money wasn’t exactly like it is today? Before the 1844 Bank Act, private banks issued paper and coins as a representative of what was in your bank account. This type of money became the dominant form of currency until it reached an unsustainable level and caused inflation, destabilizing the economy.
The 1844 Bank Act passed power over to the state to regulate currency creation so that commercial banks could not create their own notes or issue loans without government oversight. Since then, most money has become digital rather than paper or metal coins it is now just numbered in a computer system created by commercial banks when they issue loans and benefit from interest payments on those loans. A survey showed only 30% of people understand how banking works but since this is largely how we use money today, understanding these processes has become more important than ever before! So why is understanding how banking works so important? Well, if you want to understand why our economy is struggling right now or see ways that you can participate in helping it recover, understanding banking processes is essential!
The Mysterious Money-Making Machine
Money is an important part of our lives, and understanding how it works can be a tricky task. In this blog, we will discuss the complexities of money- how we got here and where we are going.
First, let’s talk about what banks do when they create money. When a bank issues a loan, it isn’t actually lending out cash that is already there- it’s simply creating new money. This process amounts to 97 98% of all the money in circulation- with banks creating the majority of it! So why is this such a big deal? Well, if everyone started saving at the same time, this would cause the amount of money in circulation to shrink and trigger a recession. And this isn’t just theoretical- during the 2008 financial crisis, banks actually did start shrinking the amount of cash in circulation as people started to hoard their money.
Another way that banks create new money is by buying securities like corporate or government bonds. This type of lending helps to increase liquidity in the economy by providing investors with a safe place to put their money. In addition, these types of securities often generate profits for banks through rising prices- even more so than when they print physical cash!
As you can see, banking is an incredibly complex process that involves lots of behind-the-scenes action. However, understanding how it works is key to understanding how our financial system functions and operates overall.
The Art Of Money- How Banks Create And Use Money
When it comes to the complexities of money, few people know as much as bankers. For centuries, bankers have been at the forefront of creating, managing, and using money. This knowledge is essential in understanding how we got here and where we are heading.
As you might expect, banks create money in a variety of ways. The most common way is by issuing loans to businesses and consumers. Over the past 10 years, UK commercial banks’ money supply has expanded at an annual rate of 7% and 10%. This growth rate allows for ever-increasing debt and incentivizes banks to issue more loans resulting in a sales culture. As debts pile up, this creates a cycle of debt that can spiral out of control quickly.
Further exacerbating this situation is the fact that banks are speculating on money – making money from money itself – which is one of the biggest forms of economic activity today. Banks make profits by trading currency and investing in securities (such as stocks or bonds). These activities can be quite risky, but when done correctly they can provide significant rewards for those who are skilled at it. Unfortunately for many people, this is not a skill that everyone possesses.
So why does all this matter? Well, understanding how banks create and use money allows us to better understand our current financial situation and chart a path forward toward stability. In short, bankers are our link to understanding how economies work – both present day and in the past – which is invaluable information for anyone looking to understand our complex world.
The Debt Trap
It’s no secret that the world of money can be pretty complex. In this blog, we are going to explore some of the complexities of money and how they’ve affected our current economy. We’ll begin by discussing how money does not come from economic activity – it must be borrowed from banks. This is why most people believe that you need savings before you can invest. However, this is wrong – you can invest in anything without having any savings beforehand.
Following on from that, we’ll look at how the Tory party’s argument of needing to create savings before helping the National Health Service is incorrect. The National Health Service (NHS) was founded in 1948 and has been providing healthcare for everyone in the UK since its inception. The NHS has relied on debt for funding throughout its history and will continue to do so in the future – debt isn’t a problem, it’s a solution!
We then move on to David Cameron’s statement about needing an economy based on savings rather than debt. This statement shows a lack of understanding about how the money system works. If everyone was saving there wouldn’t be any money in the economy and it would cause a bank write-off. This is why we need debt – it allows us to have an economy while still keeping our assets safe. It gets easier for people to get into debt until some become overindebted and default on their mortgage, but this doesn’t mean that everything ends up badly as a result. In fact, defaults rippling across the entire economy can actually lead to insolvency and make the recession worse! We have to borrow in order to have an economy as we are dependent on debt!
The Reality Of A Bailout Economy and The Complexities Of Money
Since the banking system became a critical part of our society, it’s no surprise that its complexities have had a major impact on the world. In this section, we’ll be discussing the realities of a bailout economy and how it affects us all today.
As you may or may not know, since 2007 up to £200 billion has been created out of nothing and pumped into the economy by banks. This determined the state of our economy and set the stage for future problems. For example, because banks have been bailed out multiple times, they have become conditioned to receive government bailouts whenever they get into trouble. This creates a cycle where banks are always in need of government assistance, which then leads to more debt and more bailouts – an endless spiral that doesn’t work.
Another issue that has arisen as a result of our bailout economy is what’s called quantitative easing. Quantitative easing is when banks create new money out of thin air by buying government bonds (which are backed by assets). Because this money doesn’t exist in reality, it’s essentially a digital currency that exists only on computer screens. As such, this form of currency has led to increased inflationary pressures in recent years – something that isn’t good for anyone!
Fortunately, there is an alternative form of currency – Central Bank Reserves – which has been slowly gaining prevalence over recent years. Central Bank Reserves are essentially electronic cash held in accounts at the Bank of England and managed by 46 settlement banks. Because these banks are trusted and have access to ample reserves, they’re better equipped to weather economic storms than regular bank accounts would be. In other words, while our current bailout economy may seem unstable at first glance, things could potentially get much worse before they get better if we don’t find a solution soon!
To Sum Up
The hidden money system is cancer that must be cured. It has evolved from private banks to digital currency, and it is clear that the mysterious money-making machine has created a debt trap. We must acknowledge the reality of a bailout economy and take steps to create real financial stability for our future. Let us all work together to find real solutions and create greater economic security for everyone. Let us take action today to make positive changes in how we manage our finances!
