A lot of people I speak with make an assumption that money is the same thing as wealth.

It’s not and to fully explain the reason why it’s not is beyond what I want to do here so I will oversimplify a little bit (but not that much) how money comes into being in our world in order to ask a question that seems incredibly obvious, but is completely swept under the rug, aside from us crazy, fringe bloggers.

If you work and get paid $1,200 for that work and you are prudent and decide to put $1,000 of that paycheck into the bank as savings, the bank where you put that money is, from the moment you made your deposit, legally allowed to lend out $9,000 to other people on the basis of your $1,000 deposit.

Where does the other $8,000 come from, you may ask? It literally comes from nowhere. For every $1 you deposit in the bank the bank is allowed to create $8 out of thin air and lend a total of $9 to people, businesses, etc.

Not only are they allowed to create this money out of nothing, they are also allowed to charge interest on the created money that they lend. So you deposit $1,000 and they pay you some nominal interest rate on that $1,000 (extremely nominal these days), and at the same time, they create $8,000 out of thin air and lend it, plus your $1,000 (for a total of $9,000) out to others at an interest rate that is more than nominal. Today a 30-year fixed mortgage interest rate is somewhere around 3.75 % on the low end. Credit card interest rates are in the range of 12% - 20%.

Here’s my question: in what universe is that right?

In what universe does it make any remote kind of moral or ethical sense that an entity can simply create money out of thin air and then produce income off of that money by lending it out to others at interest?

In my reality, the idea of such a scheme is completely insane. It seems like a bad vaudeville sketch; “yo, who’s on first?” And yet, that little counterfeit two-step is more or less the “legitimate” basis of the entire global economy.

All of your money is a lie.

Refuse the debt.