The Turning Point in Global Finance

The US national debt is currently sitting at $26.1 trillion. When record levels of household debt are added on top, this exceeds $40 trillion. If people tried to pay off all of their debt tomorrow, there would just not be enough cash in existence to make that happen. This means if people don't want their home repossessed, they need to get some US dollars. The second is by ensuring that the government levies taxes in this currency. Federal income taxes were introduced the same year as the Federal Reserve. Being able to conjure something into existence that has value has made banks modern day alchemists. Banks are no longer intermediaries. They are originators.