Dr. Martin Hash Podcast

The fact that money is imaginary is a hard point to get across because people exchange money every day and it seems real; but anything that appears out of thin air is imaginary: for example, anytime government needs more money to temporarily mask real societal problems, it just imagines it. Every so often, politicians will imagine more money than has ever been imagined before: like now. The question is: where will all that money go? There’s way more money than there are things to buy so bubbles form: for example, the stock market long ago entered an unprecedented upward spiral because retirement funds must show a return to remain solvent, even if it’s imaginary. That’s why most money will simply evaporate, return to imaginary moneyland: a derivative purchased for $1 that went up to $100 goes back to $1. It’s when that money starts consuming tangible things in an attempt to make it real that inflation starts; perhaps hyper-inflation, until the imaginary prices of real things to buy add up to how much imaginary money there is to buy them.