So What Is Money… Really…

So What Is Money… Really…

You can read the first part here LINK. There is an aphorism that states “it’s not getting the right answer but asking the right question” that is crucial. Readers of this site are surely aware of blurbs like ‘real money’, ‘honest money’, ‘Fiat’ money, printed money, borrowed money… ad infinitum. Indeed, Aristotle named the desirable…

The Power of the Gun

The Power of the Gun

Chairman Mao is frequently quoted as having said ‘Power Comes from the Barrel of a Gun’. As in many (not all) other things, he was right… but this statement begs the question; where does the Gun come from? Today ‘Gun’ means much more than gun and bullets; it really means sophisticated weapons like cruise missiles,…

A Psychological Perspective on the Role of Power and Money

A Psychological Perspective on the Role of Power and Money

This is the second of two posts about psychology, and should ideally be read after the first, which is entitled ’20) Psychology: Pretending There is Nothing Wrong’. This post summarises more key psychological issues which have serious negative consequences for modern societies, and then discusses the implications for how we deal with these issues in…

Follow the Money: Banking, Criminality and the US FinCEN Files

Follow the Money: Banking, Criminality and the US FinCEN Files

It was all a fitting reminder of Bertolt Brecht’s remark that bank robbery lies in the province of amateurs.  The real professionals of plunder establish banks.  Last month, the labours of Buzzfeed and the International Consortium of Investigative Journalists revealed just that.  Centre stage: international banking misbehaviour. And my, was there much to go on. …

How Is Money Created? Part II

How Is Money Created? Part II

In Part I of this article, we looked at some of the prevailing confusions and contradictions within the money creation concept. We also determined that understanding commercial bank money creation will, in essence, satisfy our goal of understanding how new money is created into the economy.  In order to determine how bank money is created,…

How Is Money Created? Part I

How Is Money Created? Part I

Without resorting to lofty rhetorics and convoluted hypotheses, this two-part article demonstrates – using experimental data and empirical evidence – exactly how and by whom new money is created into the economy. How is money created? Where does new money come from? This question sounds so simple – so elementary, that one would expect any…