Comment Re:Government is a tool (Score 1) 243
Who creates money?
Government does. Notice that every major currency in the world is backed by a government or in the case of the Euro, a group of governments. You have to go pretty far down in scale before you find currencies that aren't government-backed, such as BitCoin or currencies in MMOs.
Wrong.
Look into Federal Reserve system. It is not Federal. It does not maintain a reserve. It is a consortium of privately owned and undisclosed banks.
https://duckduckgo.com/?q=how%20the%20federal%20reserve%20creates%20money
In modern, neo-Liberal economic societies Government borrows money from private, central banks. This money is called into creation as debt. The creation of the money is an act of the bank - an accounting phantom - entering new assets as black ink on their ledgers.
Government no more "creates money" under this scenario, that you do, by using a credit card.
If "governments" backed the money, they wouldn't declare "austerity" programs on their own constituency - but instead issue jubilee forgiveness, with full restoration of productive capacity, etc. Instead, the EU and US BOTH "bail out" creditor institutions, ceding all right to their own resources and productive capacity to ownership by the bank.