The world's major money printers are in trouble. Just a year after producing trillions of dollars with a wave of their magic wands, Europe, the US, and the UK cannot get their wands working again. Captive to the science of economics and its limitations, captive to a model of money creation that is grounded and founded on debt, captive to the banking industry's agenda and actions, the existing monetary architecture is facing a serious structural problem.
The impediment to improvement and growth lies in the very model of money creation used. Money is backed by government debt. The central banks print banknotes and balance the entry in their liabilities with assets that are mainly government bonds. Money is created by debt and then grows through credit. Credit, through the fractional banking system, creates new money. This is achieved by creating new deposits based on debt agreements and contracts that banks sign with their clients.
