Thursday, October 27, 2011

The mystery of currency creation

Ever wondered about the mystery of currency creation? Given that the way currency is created is behind so many of the world’s problems in the four decades since the world went permanently off gold—you know, massive inflations, massive instability, the theft of your savings, the Great Financial Crisis…

So here you go, mystery explained in six minutes by Rich Dad advisor Mike Maloney, explaining how currency is created through "fractional reserve banking," and why the banking system “is a pyramid scam of epic proportions.” The video is only 6 minutes long but, as David McGregor at Sovereign Life says, “you will learn more in that time about the root cause of our economic problems than thousands of hours watching the news on TV.”

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1 Comments:

Blogger Paul Walker said...

The question I often find myself asking is, Is fractional reserve banking the problem or is lack of competition the problem? That is, as many Austrian economist would argue, if we had free banking would fractional reserve banking work? Under free banking some banks could offer 100% gold backed banking services and others could work on a fractional reserve system and leave it to the market to workout what people want.

10/27/2011 07:04:00 pm  

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