What is Money?

The other day, a fellow Diogenerian, a wise and learned man, asked me a question:

What is money?

It is a question that has arisen amongst fellow members before, as detailed here.

Like all good questions, it is very simple.

The answer, it would appear, is also simple.

Money is debt. And more importantly, debt is money.

And before you ask, that isn't one of the quotes that George Orwell attached to the walls of the Ministry of Truth - it is the message put forward by this film, which has been split up into 5 ten minute clips.

http://www.youtube.com/watch?v=ThXpjmfyiMQ
http://www.youtube.com/watch?v=sanOXoWl0kc
http://www.youtube.com/watch?v=kTv1fo6sKmo
http://www.youtube.com/watch?v=3qicabStQkc
http://www.youtube.com/watch?v=7kpSbkaD4tM

I should warn you that it has clearly been made by some left-wing lunatic - witness the cheap, cartoon-like graphics - and furthermore, someone who doesn't understand the extremely complex nature of the global economic system, which is monitored and controlled by extremely intelligent men and women, who deserve every penny of the extremely large salaries and bonuses that they receive.

I will say that it summarises my understanding of the global money markets, arrived at after many years of thought.

I don't really want it to be true, so if anyone who is more knowledgeable in these matters can point out the logical flaws in the arguments put forward, I would be extremely grateful.