THE MAGIC MONEY MYTH The Magic Money Myth PDF Contents Capitalism and Money How Banks Operate The New Theory of Money The Pure ‘Thin Air’ Theory of Banking Fractional Reserve Banking Loans Need to be Funded Towards a Cashless Society? Socialism or Banking Reform? CAPITALISM AND MONEY We are living under capitalism, where the means for producing and distributing wealth (land, factories, power stations, offices, media, railways, and the like) are owned and controlled by a small fraction of the members of society. As a class, this minority monopolises these means and uses them to produce wealth for sale on a market with a view to profit. In any society, wealth (all the things that are useful for human life) is newly produced by humans applying their mental and physical energies to fashion or refashion materials that originally came from nature. Under capitalism,m this productive work is carried out by those excluded from ownership of means of production and who, to live, are obliged...