Dave Gorman asked the question “Where does money come from?” earlier today, obviously the economy is on a lot of peoples minds at the moment (and not least my own – more on that another time). It was a simple question and there was a couple of really great links in the comments: Money as Debt video on Google Video, which is also available from moneyasdebt.net and a quick summation of the “Money as Debt” video.
I, like many others no doubt, thought that it was all based on the money that we deposit in banks; they invest some of that and keep some aside to let other depositors (and me) have access to some of that. But that still didn’t answer the question as to where the rest of the money comes from but the video does a great job of explaining it.
And if after watching that you’re not a little concerned then you must be a banker.