Ever Wondered How Money Is Valued and Why it Changes From Day to Day?

Note: I wrote this article during the beginning of 2009 when central banks first mulled the idea of creating money to put into the economies they serve. The original publishing date has been lost due to the conversion of JournalXtra from a forum into a blog. I'm sure the Internet Archive will have a record of the original publishing date. This isn't intended to be a fully involved, complete delving into the complexities into the way money is given value and how that value is manipulated for economic benefit. I've kept it simple and basic to lay the ground work for the more complex … [Read more...]

Time for a new banking system

There's a big, fundamental flaw with any banking system that allows banks to take money from savers then loan it out to borrowers.  It isn't that savers can't always get to their money when they need it.  It isn't that borrowers don't always pay it back.  It is, however, that banks loan out more money than they have been given by savers to look after and investors to gamble. Were it as simple as banks loaning out more money than they have in knowledge that they need only keep so much in reserve for the fraction of their savers and investors whom withdraw their money on any given day then … [Read more...]

Banks, Bailouts and My Fix

Our governments have poured our tax money into bailing out businesses that have almost deliberately bankrupted themselves.  Like so many others, I think that bailing out banks and other badly managed businesses will make little long term difference - the recession will still happen, businesses will still go under, everyday people will still lose their jobs and continue to struggle to feed their families and hold onto their homes.  I feel the bailouts will only prolong this recession. Granted, everybody who's taken on some form of debt is partly blamable for our current recession.  But had … [Read more...]