Reality Upgrade

If you have ever wondered where money comes from, you are not alone. Until recently, I did not understand the theory of money at all. I knew that once upon a time, our currency was backed by a “gold standard,” and I assumed that this simply meant that if someone took a dollar to the Federal Reserve, they could get a dollar’s worth of gold out of the national gold reserve. I figured that it was just easier to carry around paper money.

However, for my whole life, there has been no gold standard. Our currency is backed by faith in the United States Government. I never really understood how that worked.

Until yesterday, when I watched the videos below. There are 5 videos, about 10 minutes long each, and they are by far the best explanation of the way money actually works that I have ever seen. In the last couple of clips, the video talks a little about monetary reform, and I try to stay away from anything political here, but the information is great whether you agree with the author’s ideas about reform or not.

Everyone should watch these videos. After all, you use money every day. You have a responsability to understand it.