Banks create loans out of thin air, not from actual savings, which can lead to economic instability. This system allows banks to profit by lending money they don't truly possess. Historically, gold and silver served as money, but governments, particularly the US, moved away from them. The Federal Reserve Act of 1913 facilitated the shift to a fiat currency system. This move allowed for increased money supply manipulation through interest rates and gold reserves. During the Great Depression, people lost faith in banks and demanded gold, leading to bank runs and closures. President Roosevelt's actions in 1933 further solidified the abandonment of the gold standard, forcing citizens to surrender their gold. Since then, the US has experienced persistent inflation, with prices significantly increasing after leaving gold convertibility. The Federal Reserve aims for a controlled inflation rate, which erodes purchasing power over time. Deflation, or falling prices, is viewed negatively by the Fed, but some argue it reflects productivity gains. A free market with sound money, like gold or silver, would naturally allow prices and productivity to align. Central banking, by enabling inflation and credit expansion, is presented as detrimental to civilization.