Misconceptions Around Banking:
There’s a lot of confusion about how banks work and where money comes from. Very few members of the public really understand it. Economics graduates have a slightly better idea. In course we’ll discover how banks really work, and how money is created. But first, to clear up any confusion, we need to see what’s wrong about the way that most people think banks work:
What is a dollar? Sure, it allows us to buy things like food, cars, and iPods; yet, most of us don't really understand money beyond that. Dr. Martenson not only provides an understandable definition, but also explains what gives our green pieces of paper value, and what dangers any currency must face.
Understanding how money is created provides a foundation for appreciating the implications of our massive levels of debt, because it tells us how that debt came into being. As John Kenneth Galbraith once said, "The process by which money is created is so simple, the mind is repelled." Dr. Martenson walks us through this simple process of fractional reserve banking.
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