What is money? Where does our money come from?

"In the beginning was the Word..."
Money is a representation of a promise made. A contract.

The value of that promise depends upon how much ones word is trusted to honour the promise.

Banks dont create money at after all! According to the Treasury.
Treasury's take on money creation
id love to have been in the head of the person whilst they were typing that lttle gem out!

The surprising thing is how few people understand the system we live by and accept as best. It is promises that create money. And by the way, they only create the principle ; not the interest portion. So keep the music playing or else you may find there isn't quite enough to go around.

In a sense im not suprised how few understand the system because if more people did, it couldnt exist! If folks were aware in honest laymans terms they wouldnt accept it.. Misinformation is an essential part of it imo.

So simple a 12 yr old gets it.

The current debt crisis may have brought us a lot closer to having to change the system. Who knows, we may ( finally ) realise that controlled QE is good after all. Elect a pro-growth government, create money as a public service according to the need of the economy for liquidity and use taxes to destroy any excess.

That makes no sense. How do you create money? With debt. Your argument goes round in a circle.

I feel sorry for that kid, being forced by her parents to say those things, because her parents are too old to give that rather poor explanation, but when a kid says it, it sounds impressive.