In our educational system, there are a myriad of economic courses offered that study various aspects of the economy. We learn about supply and demand curves, the law of diminishing returns, statistical formulas, and other nuances. Most of us dutifully memorize the terms and formulas just long enough to regurgitate the answers for our tests, get the grade we need, and move on with our lives. Unless we pursue careers as an economists, we never use these formulas again. Why would we? Every financial institution has the ubiquitous mortgage calculator on all their respective websites. We simply plug in the numbers to calculate our monthly mortgage payments and we’re done with it. So ends our financial understanding and acumen.

Where do we ever take courses on monetary theory? Wait a minute. Aren’t these courses offered in high school? Why not? Too complicated? Hmmm….isn’t Algebra and Calculus mandatory? Are they less complicated? Courses on monetary theory should offer the answers to the following questions:

- What is money?
- What creates money? How is it created?
- What destroys money? How is it destroyed?
- What factors control the volume of money in a given economy?
- What is the medium of money?

Big questions. So they seem. We are taught that these financial matters are “best left to the experts” and not to give it any further thought. Maybe we aren’t meant to understand this topic. Wouldn’t you think that understanding these questions would be more relevant that learning Calculus (no disrespect to Calculus or it’s teachers intended)?

Over the next few blogs, I will attempt to answer (with references for further reading) these questions by stripping out the technical language and accounting terminology to put it in laymen’s terms. That’s how I understand it.

The beginning of my “journey of understanding” started with an article entitled, “I Want the Earth plus 5%” written by Larry Hannigan, 1971.

You will see that there is a cancer at the core of our version of “Capitalism”. I intend to show you how it works.

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