How money is created out of thin air.
Money is digits. It hasn’t always been that way.
Money used to be gold bullion or silver and later became coins and paper bills backed by gold.
Now it’s mostly digits. Just bits stored on a computer at your bank.
The amazing thing about digital money is it can be created or destroyed simply by changing the digits. It is as easy for governments and banks to create money as it is to change the score on the scoreboard.
In this episode, you’ll learn:
- Who I am and why I’m hosting a podcast on money, investing and the economy.
- Why money is no longer physical and why it’s no longer backed by gold.
- How the gold standard worked.
- How federal governments and banks create money out of thin air. How money is destroyed.
- How federal governments force us to use their money.
- Why money has value.
- What keeps federal governments from creating too much money.
- How knowing what money is and how it is created can change how you invest.