[Your questions answered! In the cashless era, who is making the money?
Who builds the money? The answer to the question, “What is the best way to do it?” used to be easy.
The mint, backed by the credit of the state, made banknotes and coins.
Thomas Jefferson, the third President of the United States, said, “He that can coin money can govern a nation.” he said in 1801.
Two hundred years later, little money is made at the mint anymore. This is because the Internet age has arrived and we have become a cashless society.
No cash means no bills or coins are produced, so the mint does not operate. In the Eurozone, only 15% of the money in circulation is made by the mint.
Now, who makes the other 85%?
The University of Bristol’s researcher Mark Burton, who has been working in the field for more than a decade, says
Most of the gold in circulation is made by private banks. In the UK, 97% of gold is made by private banks.”
Banks build money when someone takes out a loan. You go to the bank and want to buy a car for $1,000,000. If they determine that you have the ability to repay the loan, you just type in 1,000,000.
You type the numbers and they are credited to your account. So you have new money.
On top of the debt, interest must be paid. All loans must also be paid back.
Money does not stay with you for long. To keep the economy going, banks need to lend more money. Otherwise, we will have a serious recession. This is how money flows, not stocks. The state controls the banks.
Money is not created unless someone borrows money.
In other words, money is like an illusion created by everyone’s desires.
