The simple answer is: "from nothing." The more accurate answer is debt.

To explain this one, I will describe the Canadian Monetary system, which the basic principals can be transfered to pretty much every other nation's money system.

In an earlier post I talked about today's bank notes is called "money" only because the Government says it's money. Without the backing of the Government, Bank notes would simply be worthless pretty pieces of paper. But where does "money" come from? The Bank of Can...
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 The US banking system is a mess. At the root of the mess is the Federal Reserve. The "Fed" ironically is neither federal owned or controlled, and it doesn't have any money reserves. It is instead a privately owned banking cartel, and is probably the most powerful player in the global economy. When I discuss "the game of money" the reality is that the Fed sets a lot of the rules, and should therefore be understood as the biggest player in this game of ours called money.

Many people do a good j...
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