finance

Banks create money by making loans. Author and money expert Thomas Greco uses simple analogies to explain how this process works. He also explains how Direct Credit Clearing offers a simple, legal, and effective means for eliminating the need for bank-derived debt using the 'credit commons' approach.

Greco explains how the debt-based money system (within which we unconsciously operate) creates an inevitable cycle of boom-and-bust, because interest payments on debt, in aggregate, inevitably outstrip the value of goods and services.

The resulting urgency to repay debt creates some of the catastrophes of our time: unsustainable usage of resources, overharvesting trees, mining to much, too fast, building houses too often - all to pay-off not only legitimate costs, but also illegitimate bank fees that do nothing productive in the economy.