Do you know what money really is?Tweet
We all use money everyday, you probably got some in your pocket right now, but do you really understand what it is? “It’s paper or coins that we buy stuff with” correct but do you really understand what it is? For example, can you explain this simple question, “Where does money come from?”. I assumed that governments created it, but only 3% of money is created by governements, the rest is created by private banks, crazy and a bit scary. I didn’t know that until I watched the video below. In otherwords banks create virtual money out of thin air, then charge interest on top. This is partly why the world is more than $49 trillion dollars in debt, how can the whole world be in debt? Who is the $49 trillion owed to? There is a good discussion about who the money is owed to at TED.
TED Talk by Jem Bendell – “The Money Myth”
Someone on Reddit asked a intriguing question, “Where has all the money in the world gone?” Before you answer that question it is important to understand what money is and how it’s created. There is a detailed but easy to understand explaination in the comments of the reddit post (this will take you some time to read). If you are a bit short of time you can read a summary of the info in this post “explaining how money works as if I was five years old“.
Or if you prefer you can work a video documentary explain what money is, it’s long 45 minutes but the information is shocking and well worth investing the 45 minutes.