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the unit of value that money represents. How does a given unit of money come into existence?”
“The reality is that only 5 percent of all money is created by governments in the form of cash in circulation.”
“The remaining 95 percent of money is created by commercial banks whenever they extend credit to a borrower.”
when a new mortgage is originated, that money does not come out of a bank vault. Instead, the money is created as a result of the loan. The bank supplies it to the borrower as a bank credit, with the borrower promising to repay the principal plus interest at a future date. This new debt is registered with a federal reserve or a central bank to the commercial bank’s account, allowing it to now loan out more money based on a multiple of that new loan—usually at a ratio of ten or more to one. So the more money the bank lends, the more it has available to lend.”
in the modern world money does not represent value, Mr. Tighe—money represents debt. And the more debt that is created in the world, the more money there is.”
Unless the overall money supply keeps growing, there will never be enough money to pay back all the loans plus interest. “This is why we see ‘growth’ as the central mantra of finance. Why consumers are urged to ever-greater consumption, why prices continue to rise—because new debt must feed ever-growing interest requirements. “Most shocking to the layman is the fact that repaying debt destroys money. If most debts were paid off, far from helping the economy, it would increasingly paralyze it. No debt would mean there was no money.”
at the very time that climate change threatens to destroy human civilization, our economic system compels us to pursue ever-greater business growth—which will eventually become impossible.”
“My financial model predicts that on its present course this unsustainable debt bubble will pop within the next decade, collapsing the entire global economy—with the potential for world conflict, mass starvation, and possibly the end of modern civilization as we know it.”
don’t want responsible people—I want reliable people.”
“Oga is a patron. He provides protection. In exchange, you obey. Everyone in Lagos has an oga—all except the e-lite.”
How many Liu Hui’s and Qin Jiushao’s must be walking this Earth, thwarted by the circumstances of their birth?”
“Free oscillation of the Earth’s tectonic plates. It creates an ultralow-frequency resonance.”
“They aren’t sure why some people can hear it—or feel it—but some people unfortunately do.”
