How is Money Created? – Everything You Need to Know

Summary by Krater

This video explores how money is created through government printing, private bank debt, and quantitative easing, explaining the consequences of these monetary systems including inflation, wealth inequality, and economic fragility.

From the video

Answers: How is money created and who controls it?

• money creation by government
• private banks and debt-based money
• quantitative easing
• seigniorage
• inflation
• wealth inequality
• fractional reserve lending
• the Cantillon effect

What it concludes

• Physical money created by the government only makes up 3 to 8 percent of the total money supply.
• Private banks create approximately 97 percent of the money supply digitally through debt and loans.
• Central banks create massive amounts of money through quantitative easing, purchasing government bonds and driving wealth inequality.
• The Cantillon effect ensures that the first recipients of newly printed money benefit most while later recipients suffer from inflation.