Millions of words and thousands of pages are devoted to the subject of economics every year.

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Yet we have financial meltdowns, rampant inequality, crushing debt, environmental destruction, and staggering levels of economic injustice. Why?

Wouldn’t it be useful to have an economics that had something to do with solving our economic problems and creating a system that provides a fair harmonious structure in which humans can live and exchange goods and services?

Economics is typically defined in academic circles as a social science that studies the production, distribution, and consumption of goods and services. Notice that the definition doesn’t include the word money. Nor does it mention doing anything to solve our economic problems or create a workable system.

This website is here to suggest—and to demonstrate—that modern economics cannot reasonably be separated from money, and that many of the worst problems we’re facing today are tied to a very deep dysfunction in the money system itself and the way money is created.

Data from Federal Reserve Statistical Releases H6 Money Stock Measures, and Z1 Financial Accounts of the US
Data from Federal Reserve Statistical Releases H6 Money Stock Measures, and Z1 Financial Accounts of the US

The graph on the left shows the United States money supply compared to combined U.S. household, business, and government debt. It hasn’t always been this way, but it’s been moving in this direction for many years. The graph below shows the progress since 1960.

As a logical person, you might wonder how this could be possible. Since debt comes from borrowing money, it would be sensible to presume that some money would have to be there before anyone could borrow it. So how could there be more debt than money? It’s a good question. The simple answer to it is that our money system is not logical.

The reason for what you see in these graphs is not something commonly discussed in politics or mainstream media. The real reason is contained in the flawed structure of our money and banking system. And since this same system is used throughout the industrialized world, the same phenomenon is happening worldwide.

The basis of what’s wrong with the money and banking system lies in the nature of modern money and how it is created.

What is Money?

Where Does Money Come From?

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Last updated: December 31, 2021