" Today's official monetary system has almost nothing to do with the real economy. Just to give you an idea, 1995 statistics indicate that the volume of currency exchanged on the global level is $1.3 trillion U.S per day. This is thirty times more than the daily gross domestic product (GDP) of all the industrialized countries of the world put together" (Bernard Lietaer).
Today it is many times that amount. This "money" being traded around the world is almost fully decoupled from any measurable physical wealth.
"Of that volume, only 2 to 3 percent has to do with real trade or investment; the remainder takes place in the speculative global cyber-casino. This means that the real economy has become relegated to a mere frosting on the speculative cake, an exact reversal of how it was just two decades ago."
One reason this happened is that during Nixon administration the U.S decoupled paper money from gold, because they found pegging imaginary wealth to something physical was too limiting.
Today most money is created by borrowing. When a bank decides to grant a loan, they create that money out of nothing; but it still represents a claim on the real wealth of anyone who wasn't given a loan."
A given individual or corporate group can, under our current system, apply to a bank for a $2 billion loan for various kinds of business development. The bank grants the loan, which means they create that $2 billion out of thin air, and by social convention, agree that it is now in the hands of the corporation. So with that money, the corporation can go off to Peru, China, India, Australia, Indiana and buy up mines, forests, factories-entire towns if they want-since they have the power of money against which the locals who used to have tenure over such things simply can't compete.
This means that "increasingly, your money supply is being controlled by outsiders, by the banks. They're creating the money and they're taking the profits out of a country or place, essentially for renting that money to some group or corporation when they made out a loan."
It's is a system of pretend money. We make it up, then award huge amounts of it to certain groups, like investment banks or dot-com start ups, but not to others, like disabled children or unemployed fishers. But there is not any reason we can't use the pretend money any way we want.
Only true wealth-water,soil,rocks and calories stored in plants , animals and organic materials like oil and gas-is limited by reality.
When financial assets and transactions grow faster than growth in the output of real wealth, that is a strong indication that the global economy is getting sick.That describes the 2008 economic collapse in a nutshell.
This is a war between Real and Imaginary.
David Suzuki, Holly Dressel . More Good News
Bernard Lietaer. The future of Money
David Korten . When Corporation rule the world