Have you ever made a really big mistake? And then had to figure a way to go back and fix it? Imagine screwing up so badly that to go back and fix it would disrupt people's lives? And what if those people were your friends, family, and neighbors?
Most of us would change course as soon as possible and do what we could to minimize the damage by
I'll start by making 3 candid statements: 1) money is not a medium of exchange, 2) while gold and other natural elements have been used as mediums of exchange in the past, they are no longer, and 3) the world's financial system has never been backed by natural elements such as gold.
The mistake I'm talking about was made by individuals high up in the banking world and is called greed. And when their mistake became obvious, they chose to maintain their positions, stay the course, and hope it would all work out in their favor in the end. Such is where we are today. Recent rumors of mass banker suicides abound, and it wouldn't surprise me if most of them were true. But I digress.
The purpose of this article is to help rearrange our thinking, so that the truth can emerge in a way that inspires creativity and action. For starters, let's find out where our ideas of money come from. For a traditional history of money, click here. For more information and an alternative view of the history of money, click here.
Now that we're on the same page about where we've been, let move on.
Fractional Reserve Banking
Our world's central banking system is set up so that banks actually store a small fraction of their daily deposits and loan out or play the stock market with the rest. This is the big greedy mistake I was talking about. In banking its called 'fractional reserve banking' and in every other setting it's called a Ponzi scheme. Many people have gone to prison for doing what our big bankers do every single day. And this is how central banks control the so-called 'money' supply. The 'money' received from interest on loans and from stock investments is entered into the bank as digits into a computer system. No physical notes are passed in these transactions. So the majority of the 'money' in the world is simply digits.
Questions and Answers:
Q: So if most of the 'money' exchanged in the world is simply digits entered into a computer, theoretically, couldn't an expert computer hacker hack into the bank, enter digits into their account, and be instantly rich?
A: Yes, theoretically.
Q: If that's true, couldn't everyone in the world be rich if they could just enter the amount of digits they wanted into their bank account?
A: Yes, theoretically.
Q: Theoretically, could this be done without disrupting the economical balance in the world?
A: What balance?
Q: Practically speaking, is there an economic plan that would make use of this knowledge in order to free humanity of homelessness, starvation, illness, and death?
A: Yes. It's called the Heirship Economy.
Q: What's stopping us from implementing the Heirship Economy?
A: Enough humans demanding it.