How does a smart phone device or a home gaming console produce money? Do they come with a money printing option? Can you print money from your smart phone or from your video game console? No.
So how are you supposed to make money from creating little consumer gadgets like phones and video games? You have to sell it to someone in exchange for their money. But where does your consumer happen to come up with this money? Does your consumer have a money printing machine at home? No
So where does your consumer come up with this money? He has a job and a salary. Or a credit card (we will get back to that later). So his employer has a money printing machine? No.
So where does the employer come up with the money to pay for his employees? He has a credit line from the bank who lends him money to pay for his business. And where does this money that the bank has come from?
Well he gets it from his central government in the form of the central bank. Which he uses as a reserve to lend out to businesses and private individuals in the form of fractional reserve lending.
So we have finally discovered the source of all money. All money comes from the state.
If private enterprise truly had the power to create money. Money would look like this.
And not like this.
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