We’ve pointed out for 4 1/2 years that banks create money out of thin air. Specifically, it has now been conclusively proven that loans come first … and then deposits FOLLOW.This is the most important secret about modern banking … because it debunks one of the biggest myths preventing a strong economy, challenges one of the main pork barrel profit centers for big banks … andopens up incredible opportunities for a prosperous economy.This odd and counter-intuitive – but crucially important – truth has now gone mainstream …Specifically, the Financial Times’ Martin Wolf – one of the world’s most influential mainstream financial writers – says that, since banks create money out of thin air, they should be stripped of this power, and limited to normal depository functions. Wolf indicates the centrality and importance of the issue with his subtitle:
The giant hole at the heart of our market economies needs to be plugged.
And Business Insider – the world’s most popular financial news blog – is currently running this as its top two front page stories:(Read the Business Insider stories here and here.)If we reclaimed the power to create credit from the too big to fail banks, we would all be much wealthier…