Why bankers are like time travelers who grab value from the future

How do bankers create money? Here's your incredibly frustrating answer: they just create money.

Politics & Current Affairs

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.