00:00Setting the stage, the birth of the credit system, 046 to 2 o'clock, for most of human history,
00:06people lived within the limits of what they possessed. Farmers grew food. Merchants traded
00:12goods. Kings collected taxes. Money was typically made from precious metals like gold and silver.
00:19But in the 17th century, a subtle change began. Banks discovered something powerful.
00:26Depositors rarely withdrew all their money at the same time. That meant banks could lend out a
00:32portion of those deposits while still promising customers access to their funds. This practice
00:37became known as fractional reserve banking. At first, it appeared harmless. It stimulated trade
00:44and investment. Businesses grew faster because they could borrow capital. But beneath the surface,
00:50a new economic engine had been created. Money could now be created through lending.
00:56And every new dollar entered the system as debt.
00:59.
00:59.
00:59.
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