Reply #17: Banks don't create money..

[girl gone mad]

they create debt. The dollar credits they lend are balanced by a matching debits. The assets and liabilities cancel each other out and these debts have to be paid back with interest (or written down). This is something we are currently experiencing on a large scale, with widespread debt-deleveraging resulting from excessive private debt creation.

Only our government creates money. It does so by spending. This money is destroyed via taxation, which is the most effective means of combating inflation.

Currency revulsion is one way to bring down the corrupted system, though I'd prefer to see more thought given to using money alternatives to achieve a specific set of goals. Gold and silver may be a reasonable store of wealth, but a gold standard would not provide an adequate basis for a balanced economy with more equitable prosperity. It would be easier to implement alternatives at the local level.