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    Why Our Money Doesn’t Make Any Sense

    Filed Under capitalism, class, local, media, politics, questions 

    I recently learned where our money comes from. The fog is lifting. Observations of the way things work aren’t quite so puzzling anymore. For example, I now have some understanding of:

    I’m learning about economics as part of my participation in the The Real Wealth of Portland. One of the people involved, Alan, is a filmmaker who has been studying the Federal Reserve system for several years. Several months ago he told me about this 47 minute animated video (see below) by Paul Grignon, which gives a clear and concise overview of how money actually works in the world today. Most people - including very educated, intelligent, opinionated, and activist oriented people - have no idea. Do you?

    He’s working with others to start a community credit program here in Portland. After watching the video, I have to say it seems like one of the most rational things in the world to do. The “real wealth” is the resources of you and me - all of us! - not in the IOUs our banks hold. One of the questions the film had me asking myself was: if there were no money, what skills and services would I, Hafidha, be able to barter for the goods and services that I needed?

    What about you?

    *Note: The quote attributed to Woodrow Wilson at the end is not entirely accurate. While he did say some of the things in that quote, they were not necessarily all said in that order. The Legal Husband (LH) checked on that. I don’t think this detracts from the efficacy of the video’s overview of the monetary system.

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    2 Responses to “Why Our Money Doesn’t Make Any Sense”

    1. Comrade Kevin on January 10th, 2008 7:17 pm

      The powers that be don’t want the average person to understand the monetary system. This is one of the reasons why it is so overtly complex and built on large amounts of subterfuge. Money is power and the link between the two is that of a hand in glove fit.

      Also, curiously, economic principles are not widely dispersed in educational settings, nor explained in terms that even the educated person can understand. Economics is perceived as largely dry, boring, and a discipline utterly unrelated to the lives of anyone except for a specialized few. That is most regrettable because the factors of economics, as you are now aware, affect all of us more powerfully than many of us could even imagine.

    2. Kate on January 11th, 2008 3:00 pm

      Hi from a lurker among UU blogs.

      I watched this video with great interest. I didn’t know about most of this either. (Though I think I actually did learn about some of this in a very good high school econ class, but if I did I forgot.)

      I don’t know if you know the answer to this, but I’m going to ask anyway in case you do. They talk about interest in regards to debt a person has, but what about investments a person is earning interest on? Is that just the other side of the coin? If I am tucking away money into an IRA at a young age to maximize its growth in hopes of retiring some far-away day, am I just securing my future by squashing someone else somewhere else with more debt? Because what sounds like a sensible plan for financial stability sounds pretty awful if you think of it that way. But that money obviously has to come from somewhere too.

      I’m inspired to understand this better after seeing the video, but if I don’t get back to my “real” research (grad student) I’m going to be in trouble!

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