On the blog, Pragmatic Capitalism, we found an article from Cullen Roche that we considered extremely insightful, and share-worthy to all of you.
It is truly astonishing how many well-educated folks have fallen prey to some of the myths in economics. It’s time to clear up some of the most widely misunderstood points of economics today.
In regards to the #1 myth, “The government ‘prints money'”, Cullen Roche begins by saying:
The government really doesn’t “print money” in any meaningful sense. Most of the money in our monetary system exists because banks created it through the loan creation process.
Roche touches on 10 frequently heard myths in this article. We feel this article is mandatory reading material for anyone in the market.