Money, credit and capital are three fundamental economic terms that every high school student, at least, should understand. Yet we live in a society that does not treasure clarity about itself. Power prefers obscurity. So not only do few high school students understand these concepts, but few PhDs in economics do either. If you learn anything from this article, at least I hope you will understand these three. If you already know, or think you do, what money, credit and capital are (readers of this journal should know these), perhaps nonetheless you will be somewhat surprised by the simplicity, clarity and power of my treatment of these basic concepts. Most importantly, understanding these better makes it much easier to understand why economic crises occur. These are not primarily caused by errors in government policy, but by the process of capitalist competition between bears and bulls, involving the conflicting interests of creditors and debtors. Strategic power in a capitalist economy rests with those who advance and withdraw credit at the highest levels.

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