The Secret of Creating Money Out of Thin Air
Have you ever wondered where money comes from? Some people think its still based on bars of gold and silver sitting in vaults somewhere. Its not though, its created out of thin air. Most of it isn’t even printed or coined, its just typed into a computer.
When you get a loan from a bank, whether it be a mortgage, a car loan, a line of credit or even just a credit card, where do you think that money comes from? Most people think that it comes out of a big pool of money encompassing everyone’s checking accounts, savings accounts, CDs, etc. It’s not though—this is how the banks create money. When you get a loan, the bank creates the money out of nowhere and adds it to your account. No muss, no fuss. And since hardly anyone ever wants their loan in cash, they don’t even have to bother to print out paper money.
Don’t believe it? Watch this video by Paul Grignon to see how they do it, and how things got this way. You can also order your own DVD copy of the video from the Money as Debt site.
Alexander Marchand also has a great article about this on his blog, The Universe As.
All this pretty easily explains how Citigroup (A.K.A. Citibank) has over $1 trillion in assets. Just think of how much that is.
