Fiat Money
“money is loaned into existence, but vanishes if the loans are not systematically paid back”
Jim Kunstler talks about facets of the “Long Emergency”.
Here is a great video that describes how money is created. It is a good supplement for the discussion about how money is born.
Federal Reserve money is fiat money that is “loaned into existence”. Now that the banks and equity markets have defaulted on billions of dollars of loans we are in a world of trouble.
