How most money, such as currency, bank deposits, money market mutual funds, and repurchase agreements, is really short-term debt, often backed by other debt. As a result, money is subject to runs when investors lose confidence and don't want to own it. That can lead to financial crises.

Topics covered in this episode include:

How counterfeiting currency works.Why most money is debt backed by debt.How a loss of confidence in money leads to bank runs and other financial crises.How demand for U.S. Treasuries as collateral is keeping interest rates low even though the U.S. federal budget deficit is growing.Why the Federal Reserve is considering capping interest rate yields on U.S. Treasuries and what are the risks of doing so.What can individuals do to protect themselves against financial crisis caused by runs on banks and financial securities.

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For show notes and more information on this episode click here.

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