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Ever thought about what money really represents? In essence, it’s a way to measure the value of products and services within the economy.

According go Moderern Monetary Theroy (MMT), a key reason for imposing taxes is to create demand for that Government’s Currency. By requiring that taxes be paid in Currency they can create out of nothing, the Government ensures people need it.

FED like other Central Banks has the ability to create Currency out of thin air by making purchases from the Government and other Institutions (like Banks). During the 2008 financial crisis and during the “COVID-19 pandemic” the FED balance sheet expanded approx 2,4x. Based on past trends, it’s likely that the Fed would again engage in significant asset purchases in the future crisis.

Derivatives market has blown a galactic speculative bubble. 9 of the largest (to big to fail) banks shown below hold a total of $248 Trillion of notional value > 2x of world economy.

Notional value of Derivatives is estimated over $1.000 trillion while the value of the underlying assets of these “bets” is estimated to be less than $300 trillion. What could go wrong?

One process how Central Banks create currency out of thin air is called Quantitative Easing (QE). Essentially QE means Central Banks purchase debt from non-govenrnment institutions to stimulate the economy. ‘Printing currency’ for QE comes with big risks, such as market distortions, asset bubbles (dotcom bubble, housing bubble) and inflation.

Central Banks can create money out of nothing. One of the key processes is called Debt Monetization – turning debt into Currency. Debt monetization allows the Central Banks to create currency by “purchasing” Government debt – that the taxpayers have to also pay interest on.

Ever wondered how commercial banks can make Currency out of thin air? The secret lies in the process of creating loans.

Have you ever wondered why your currency doesn’t seem to go as far as it used to? That’s inflation at work!

Did you know that the richest 1% of the world’s population own nearly twice as much wealth as the bottom 99% combined?