1. It’s absolutely gratifying when ordinary people are interested in Economics & more specifically money & banking. Most Economists shy away from explaining concepts because they too don’t really understand them. It’s easy to argue, much harder to explain concepts

2. It has made me realize that maybe before one argues a point they must explain the concept. So indeed we appreciate their conceptualisation and argument. Why else would a whole society be fixated with current a/c & forget capital a/c? Anyway, back to money ....

3. Before central banks & more specific the FED act of 1913. & introduction of income tax on 3 Oct 1913 ( I know this date because I was born on the 3rd of Oct) Banks could independently issue/print their own money & credit creation.

4. The Era before state national banks ( state based FED -12 of them) was called the free banking era. Absolutely NO central bank , each bank held its own. With gold in the vaults each bank issued currency. For example CBZ ( CBZ$) would’ve its own money different from ZB ( ZB$).

5. Banks operated and succeeded under free market. So they issued currencies and credit under the gold system. All was backed by Gold. Zero credit money. You lent out what was in the vault.

6. As a means to control issuance of money government formed central banks. The only bank that can issue/print currency. At first backed by Gold until 1934, 1943 & ultimately 1971. FED was formed in 1913 but by 1971 it had abondened Gold. Throwing away centuries of principles

7. Fiat is a Latin word for Decreed. Fiat money is money because the government has decreed it to be money. No other authority has this power. Meaning noone else can issue/print money. Remember JP Morgan, “ gold is money everything else is credit?”

8. central banks issue/print money & also credit creation. Banks cannot print money but credit creation. Hence the distinction between money and credit money. To the layman, a credit & debit card are different. Though both make purchases. But one is money & the other credit.

9. Central banks and Economics make these distinctions clearly. Mo,M1,M2,M3. They do so primarily to distinguish money and credit money. Credit money is risky money. In my essay I show how dual currency developed in Zim & where we are headed. https://link.medium.com/ChnhZBEy17