A Black Hole In Economics: Money Creation And Its Consequences, Session Two
Money Creation, Then And Now
I've attached a recording of Session Two from my recent course on money creation, which was delivered to an audience on the Ayn Rand Centre YouTube Network. Live viewers of the course needed a paid membership to attend, but I'm now happy to offer all nine sessions to you at no charge. I’ll continue sending out one weekly session until the course is done.
Session Two is titled “Money Creation, Then And Now” because, as you’ll see, the way commercial banks create modern money is the same as it was hundreds of years ago under a gold standard. The ability to create money distinguishes commercial banks from all other financial institutions. It is what makes a bank a bank!
As usual, a manuscript of detailed notes is attached for those who would prefer to read the content or examine my sources and references, all of which are fully documented.
Most people can enjoy this discussion at 1.25x.
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HardmoneyJim
December 8, 2023
The contortions embedded into our money system guarantees that few people will be able to comprehend what goes on behind the dollar bill in their hand. The complexity makes for easy plucking. As you say, there really is no link between money and wealth, but I think it is because there is so very much wealth in our modern society, the money we use is supported by it. I consider the wealth in a society to be imbedded in the knowledge and in the productive enterprises built on that knowledge of how to create both the goods and the services that human being value and will expend their effort to acquire.
When you point out the disparity in opinions as to the amount of fiat money that would be created in a truly free market system, you raise food for a very interesting discussion.