--- title: "Meaning & Key Takeaway of: In the days when money was backed by its…" description: "\"“In the days when money was backed by its face value in silver or gold, there were limits to how much wealth could flow around the world. Today, it's v..." image: "https://sms4smile.com/quotes/i/577/alan-weisman-19260_around-the-world_in-the-days-when-money-was-backed-by-its_1040418.jpg" --- # In the days when money was backed by its face value in… ![“In the days when money was backed by its face value in silver or gold, there were limits to how much wealth could flow around the world. Today, it's virtual money that the bank lends into existence on a computer screen. "And unless the economy continually expands, there is no new flow of money to…” quote by Alan Weisman](https://sms4smile.com/quotes/i/577/alan-weisman-19260_around-the-world_in-the-days-when-money-was-backed-by-its_1040418.jpg) [Download](https://sms4smile.com/quotes/i/577/alan-weisman-19260_around-the-world_in-the-days-when-money-was-backed-by-its_1040418.jpg) [Open image](https://sms4smile.com/quotes/i/577/alan-weisman-19260_around-the-world_in-the-days-when-money-was-backed-by-its_1040418.jpg) > ““In the days when money was backed by its face value in silver or gold, there were limits to how much wealth could flow around the world. Today, it's virtual money that the bank lends into existence on a computer screen. "And unless the economy continually expands, there is no new flow of money to pay back that money, plus interest." . . . "As it stands now, if banks start loaning money more slowly than they collect debts, the quantity of money in the economy goes down, and it's impossible to pay back debts. So we get defaults on houses . . . our economy plunges into misery and unemployment. Under our current monetary system, the only alternative to that is endless growth. So one absolute thing we have to change is the whole nature of the monetary system. . . . we deny banks the right to create money." . . . There's a challenge with that solution, he admits. "You're trying to take the right to create wealth away from some of the wealthiest people on the planet.”” [Alan Weisman](https://sms4smile.com/quotes/author/alan-weisman/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The current monetary system relies on endless growth and bank-created money, leading to debt cycles and crises; reform is needed to prevent inequality and instability. **In simple terms:** Current money system needs change. Key Takeaway Advocate for monetary reform. Themes economics growth inequality Mood concerned urgent Type analysis political inspirational When to use this quote - banking - government policy - personal finance Key Concepts monetary policy debt cycles Questions to Reflect On - How can ordinary people influence monetary policy? - What alternatives exist to bank money creation? A Different Perspective Changing the system faces powerful opposition. ★ ★ ★ ★ ★ No ratings yet [Around the world](https://sms4smile.com/quotes/about/around-the-world/) [Create Wealth](https://sms4smile.com/quotes/about/create-wealth/) [Economics](https://sms4smile.com/quotes/about/economics/) [Economy](https://sms4smile.com/quotes/about/economy/) [Face value](https://sms4smile.com/quotes/about/face-value/) [Money](https://sms4smile.com/quotes/about/money/) [Overpopulation](https://sms4smile.com/quotes/about/overpopulation/) [Wealth](https://sms4smile.com/quotes/about/wealth/) ## Related quotes > [“The power of kings and emperors has limits, but that of wealth has none at all. 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