How do bankers create money? Here's your incredibly frustrating answer: they just create money.
Like it or not, banks — and the bankers they employ — hold incredible sway over the economy of the world. The former Finance Minister of Greece, Yanis Varoufakis, has a great way of describing how they continue to consolidate this huge amount of power. He posits that bankers time travel. Not by a DeLorean traveling at 88mph, but by taking value from the future—for instance, how much the housing market is going to be—and apply it to the present to essentially create value out of thin air. It's economic black magic. And it can lead to major consequences for the rest of us... but rarely for the bankers themselves. Yanis's new book is the fascinating Talking to My Daughter About the Economy: or, How Capitalism Works-and How It Fails.
Yanis Varoufakis is the former finance minister of Greece and the cofounder of an international grassroots movement, DiEM25, that is campaigning for the revival of democracy in Europe. He is the author of And the Weak Suffer What They Must? and The Global Minotaur. After teaching for many years in the United States, Britain, and Australia, he is currently a professor of economics at the University of Athens. His most recent books are Talking to My Daughter About the Economy and Adults in the Room.