The Global Impact of Money Creation: A Deep Dive into the Finance System

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The Flaws and Consequences of the Current Financial System

The current financial system, operating on the principles of neoliberalism, is characterized by floating exchange rates, weak regulation, and minimal government interference. This system has led to wealth concentration and limited democratic evolution, raising concerns about its sustainability and fairness.

Statistical analysis has found that every time an empire begins to near its own demise, its currency will be debased. This debasement is often a result of the introduction of quantitative easing measures, such as those introduced by the Bank of England in 2009. These measures allow banks to have as much central reserve currency as they want, leading to the absence of a meaningful fractional reserve.

The emergence of digital currencies has further complicated the financial landscape. These currencies have allowed private banks to dominate and create a money system that works for them, raising concerns about who benefits from this transformation. The banking crisis not only led to economic hardship but also resulted in the deaths of millions of people, highlighting the need for accountability and radical reform.

Money Creation by Private Banks

Contrary to popular belief, it is private banks, not the government or central bank, that create the majority of new money in circulation and determine its allocation. Banks create money through an accounting trick, pretending that you have deposited the money when they give out a loan. This is how the money supply is created.

Banks create new money whenever they extend credit, buy existing assets, or make payments on their own account, which mostly involves expanding their assets. The amount of money they’re creating out of nothing is just incredible, 1.2 trillion in the last 10 years. That money is being distributed according to the priorities of the banking sector, not the priorities of society.

The Role of the Monetary System in International Dominance and Control

The monetary system plays a crucial role in international dominance and national control. The global financial system, governed by institutions like the International Monetary Fund, has perpetuated a form of economic warfare and financial imperialism, exerting power and control over poorer countries and exploiting their resources and workforce.

The Impact of Money Creation on Inflation and Standard of Living

Inflation can be avoided by regulating the amount of money in the economy to match the actual activity happening. This can be achieved by issuing money only for productive investment. The current system of money creation by private banks for non-productive usage causes real inflation and a decrease in the standard of living.


Understanding the finance system is crucial for making informed decisions about our economic future. The current system, characterized by neoliberal principles, private bank-controlled money creation, and international dominance, has significant flaws that need to be addressed. By focusing on productive investment and regulating the money supply, we can avoid inflation and improve the standard of living. As we move forward, it’s essential to have open and honest discussions about the future of our financial system and the role it plays in our society.

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