Banking is a concept which is basic to modern civilization and which has become mind-bogglingly complex, for reasons which may be in need of re-examination, since the time of its original invention. At the very least, there needs to be a better documented understanding of the basic concepts as well as the current complexity and the reasons behind it.
- US Federal Reserve
- global economy
- Money as Debt: explains how the banking business got from its simple origins as a necessary and useful tool to the complex and somewhat iffy behemoth we are familiar with today. I am not at all sure that the conclusion "money=debt, and therefore if all debts were paid off, the economy would have no money" holds water; an elaborate understanding of the nuances of these two concepts is built up, but then all the nuances are ignored in this simple equivalence. One might similarly prove that 1=2 by multiplying both sides of the equation by zero... or it may have some validity. Further analysis needed. However, the proposal to create a bartering system, as an emergency backup so that commerce may proceed even if the current banking system collapses, mirrors my own thinking. -W.