A world class economics professor explains in lay terms the answer to the question all of us should know by now, Where does money come from?
On this brief video economics Professor Richard Werner answers the million dollar question, Where does money come from? This is a must see video for everyone, since all of us are living in this wicked system that has based everything upon money. It wont hurt to know a thing or too about that thing we need to survive everyday in today’s modern society, MONEY.
Facts about money:
- Notes and coins circulating are just 2-3% of the existing money supply.
- The remaining 98-97% of the money supply is created by private banks in the form of credit.
- As long as banks create credit for productive purposes, like the production of good and services there will be economic growth without inflation.
Professor Richard Werner is a is a German academic, economist andprofessor at the University of Southampton. Werner is a monetary and development economist and has written extensivelyin macroeconomics, banking and monetary policy in Japan and Europe. He has been a fellow researcher for the Development Bank of Japan and a visiting researcher for the Bank of Japan and has been visiting scholar of the Institute for Monetary and Fiscal Studies at the Ministry of Finance of Japan. His strong academic ties in with Japan’s main financial government institutions has made him one of the few western scholars in the world with the best understanding of the Japanese financial system. His book Princes of the Yen: Japan’s Central Bankers and the Transformation of the Economy is a journey through the Japanese modern monetary system, where he explains its origins, role in the Japanese and World’s economy and criticisms towards its functioning model. I highly recommend reading it if you are interested inunderstanding more how money is created and how an economy can flourish and bedestroyed through irresponsible monetary policy and private banking.
Richard Werner has been appearing recently in Youtube in a series of interviews and here is one interesting one I would like to share with you where he talks about Where does money come from? here is the video.
“Where does money come from?” an interview with Prof. Richard Werner