I’ll admit that, until now, I’ve never wondered much about where money comes from. However, after watching this video, I am totally fascinated by the concepts it explores. I can’t vouch for the accuracy of the content or how it applies in Australia, but nevertheless, it’s a terrific video that everyone should watch.
The basic premise of the video is that the monetary system we have in the West is a complete fraud and totally unstable as it is built on the foundation that money is created by the banking system through issuing debt. When they agree to loan you (or a corporation or a government) money, they literally create that money out of nowhere. Watch and learn more. I’ll no doubt be talking about this during next week’s live show which will feature @brad_fidler talking about the origins of – and possible alternatives to – capitalism.
The video was created by Paul Grignon and I was pointed to it by @lelaissezfaireisover.
http://vimeo.com/moogaloop.swf?clip_id=2244372&server=vimeo.com&show_title=1&show_byline=1&show_portrait=0&color=&fullscreen=1
Money as Debt from RoneTyne on Vimeo.
You can have a monetary system without debt.
Debt is not permitted under sharia law so strict Islamic countries operate almost entirely without debt as far as I know.
This totally applies in Australia, which follows the English reserve bank system.
My understanding is that Sharia law only prohibits interest, not debt.
There was a time when usary (charging interest) was frowned upon in England as well.