I've gotten some email from readers wondering why I've been dishing on the banks. After a recent personal conversation, I've realized that most people don't have any idea how our monetary system works. Accordingly, I will be posting on the subject of money, banking, and the economic situation in which we find ourselves. For a start, readers need to understand a bit of history about our money. This is a very good little video about the history of American money. (Caveat: at the end of part 2, there's a bit about what prices would be which is misleading because he assumes that wages would stay the same--ignore that part)
By the end of this video, if you aren't thoroughly confused about how our economy got where it is, you weren't paying attention.