As Polanyi explained in, The Great Transformation, it is by their financial control of the international bond market that bankers rule over national governments: by manipulating bond interest rates and exchange values of currencies, and by flooding or starving nations of international payments money.
Governments do not issue their own money: that is the ruse that obfuscates the truth. Governments collect taxes and issue bonds (debt) to get money. Bankers issue money to purchase the debt. Banksters have for centuries exercised monetary sovereignty -- the power to create, originate, issue The Money of Nations. The money purchases the Wealth of Nations. But Adam Smith believed gold is the only "real" money, which blinded him to the power of the bankers' credit/debt money. The economics-industrial complex has maintained this willful blindness ever since.
Money is not "produced" by economic effort: another obfuscating ruse. Money is simply "created" out of nothing by banks. Money is not "backed" by something else. Money is simply numbers or tokens that people accept as "payment" for real stuff. Much ink has been spilled arguing over the definition of "money". But like the proverbial duck, the definition is functional: If it spends like money, if it buys like money, it is money.
The offer to pay money commands people to do whatever you want them to do; commands the economy to produce and build whatever you want. With money you can buy everything that humanity can convert to "property" and sell. Capitalism converts the world to property and sells it for money that is simply created out of nothing by bankers. The buyers of the world then "own it" as their private property.
Money and debt are positive and negative numbers that work by accounting arithmetic. Money numbers have no logically necessary or causal relationship with the "value" of real things in the real economy. Humans "wanting" stuff gives the stuff its "economic value". In our capitalist system, the only people who get the stuff they want are people who have money to "buy" the stuff.
There is nothing inherently wrong with money as an institution. Complex economies need money to function. The problem is that self-serving private interests -- "banksters" -- have captured ownership and ruling power over the institution of "money". And they are using that power to re-create a plutocratic ownership structure governed by a neo-feudal ruling class of owners.
Human ingenuity and effort in the real economy produces all of the real economic value that is bought and sold for money. But the economy produces exactly zero "money". Banks "create" all of the money. How banker money gets into the real economy is one of the "mysteries of the faith" in mainstream economics -- which models a fairytale barter economy in which we exchange the economic "values" of goods with each other.
In mainstream (neoclassical) economic models and theories, we do not buy and sell stuff among each other, for money. We barter. We "trade" with each other. Money is not 'really' real. Money is treated as an abstract numerical representation of the "value" of the real goods and services we each produce and "trade" with each other.
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