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Wealth vs. Money
- True wealth lies in resources, not money.
- Money is merely a claim on resources and can fluctuate in value.
Fractional Reserve Banking
- Fractional reserve banking allows banks to loan out most deposited money.
- This creates new money backed by debt and interest, leading to more money than existing reserves.
Federal Money Creation
- The government creates money by issuing treasury bonds (IOUs).
- The Federal Reserve buys these bonds with newly created money, increasing national debt.