There have been several systems in place to push money into society to make the exchange of goods and services easier throughout history.
The Egyptians used the build of the Pyramids during the flooding period of the Nile to hand out gold from further south to the people when they could not work on the fields; and giving out money is forbidden in all major religions, which is why especially religious Jews are the investment business big players in the western world and also rich Moslems will not give out money against interests, but only by participating in the profit created based on their money handed over.
Today, we have a system that creates money based on a central bank handing out money to banks based on an interest in percent of the handed out money and the banks give out that money again based on an interest rate to all those that have a security usually in form of wealth over an idea.
Banking therefore has several layers. From the short term credits to get a car to real estate and cash for a company the classic interest based credit based part is creating more overall money.
Investment banking is usually stock market speculation in which company shares, or other products based on those, are bought and sold based on the expectation of usually future success of the company. The value of a company therefore is not only the land or real estate and all goods created, but also the value of all shares traded. That value goes up and down based on buyers willing to pay a price meeting a seller willing to accept the price and this again creates more money around, yet more indirectly than a bank getting a sum to pass on to the home builder from the central bank.
If buyers keep asking for a stock and they don't find a seller the stock price will get up and so does the value of the company. No money was printed for that, but the overall value represented in a stock price shown in money gets up and therefore the value rises creating indirectly more value and therefore more money around, becoming a direct impact on the overall money around, if someone takes a credit based on the stocks value as a security.
Only in classic investment banking by becoming a partner on the future profits the overall amount of money around does not rise directly or indirectly.
Especially in alternative medias other systems of money are frequently discussed and promoted, because our interest based system has a flaw and that's a huge one: It creates conflict.
Looking at a simplified version of our money system to understand the problem, imagine to have only three parties: The central bank and two lenders and only one cycle of lending ending in one pay back. The central bank gives out money in the beginning of that one cycle to the two lenders. That is a 100% of the all around money. The bank does that based on charging an interest rete. Let's say 1%.
I am always surprised how many pass, on the conclusion, especially having a diploma in economics refusing to either understand or admit the very problem:
That is that both parties have to give back 101% of the money they lend and since both have to do so, the central bank actually asks to get 1% more back than she gave into the market.
So, where is that extra percent supposed to come from, if none of the lenders may create their own money?
Yeah, there can be only one lender surviving the cycle. Banking Highlander style.
The only way to avoid death of any lender is to ask for another cycle and another credit hoping to be more lethal at the end of that second cycle. A world in war...
I agree with most conspiracy theorist weirdos that step into what money is only on the point of this system is creating conflict and in the respect of money systems I am a religious money man.
What, if we had a system in which the amount of money depends on the value of produced services and goods put into the market?
Every time a market participant creates value, the value creates more money around.
A car manufacturer pushes a car out of production, the added value for the market which is on top of the cost the needed raw materials is pushed into the market making sure that someone will get the money to buy the car without the need to bring any participant of the money market into a position that is either his death or causing another credit?
Calculating the value is easy, it is the price the car is actually sold for. Like the aluminium, the electricity and rubber or electronics all made by companies that have to declare their profits to both tax and stock market in a tax declaration or stock market rules complying company balance sheet.
That way the overall money around is reflecting the goods and services around in the market and enough buying power is pushed into the market to make sure that competition can remain healthy and fair.
The more bread around more the more money around and nobody has to be afraid to get taken from as there is enough around and we all have to just keep looking where it is floating.
If this system we have today goes down and I survive the hitting bottom ground I either keep fighting or we go for a value adding system over credit only.
Come on masters, it's sharpened...I wanna have money on the streets.
