There is an excellent video you can watch for free online that explains our money system pretty well. It is a cartoon and it will help you understand a little better why we are in the situation we are as far as the economy goes. Basically our money is not backed up by anything substantive like gold, and the way we get more money is not through working first and then getting paid, it is by taking out loans. The loan money we get from the banks is not actual money they have, it is money that we promise to pay in the future and therefore DEBT!!! Our Money today is DEBT!!! So when people forclose on their homes and stop making payments, the loan money they received and used is essentially gone - disappeared- no longer there. So that causes the bank to scramble because they've been using that promise to pay to lend out more Debt money. It is a huge mess!!! This video does a great job of explaining banking and how this system of money as debt works. Their idea for how to fix it is interesting, but I think we would be better off to just move to a gold standard and have our money have intrinsic value. I think that would fix this mess. In a lot of ways, I hope the whole system does come down because it is so messed up. The fear is that we could end up with something worse though since most people just don't understand basic economics and money. But if that is you, then this video will help!!
Here's the link : http://video.google.com/videoplay?docid=-9050474362583451279
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