Money as Debt II Promises Unleashed (4 of 8)

[jsnovais1000]

Incentives must focus on production, and not on financial interest money lending!

—Money is something the State can create at their will, and it should do it with tight control, so as not to get fooled by those who never want to do anything at all, and live at the expenses of those who work.

[jsnovais1000]

If the money creation process was handled, in the way I stated in my comment below, it would, probably, be possible to run all countries economies, without being necessary for their People to pay taxes; all loans´ interest payments might be more than enough to run the countries economies.

[jsnovais1000]

One easy way to solve all problems regarding money creation, and its control by the State, is: The State licenses money creation to the Private Banking System; right? No problem with that, provided that the payment of interest on loans is made to the State Banking System, instead, and in case of debt foreclosure, the property left as collateral, falls back into the hands of the State, where it really belongs.

—The Private Banking System could get payed on piece work, by the State, it works for!

[copperblade]

I like the ideas presented, but how do you avoid the liquidity traps inherent in a system where money is static? What incentive does anyone have to ever lend money without interest?

[MrOverdoser]

God said debt is a sin, but the Jews changed it to make it OK to charge interest from non-Jews (non believers). God came back with this- every 7 years you release any debts owed (That's why in the U.S. Bankruptcy is available every 7 years- at one point our fathers said in GOD we TRUST!) The Jews forget about Jubilee (Every 50 years we are to release ALL DEBTS and Slaves- a completely fresh start for ALL) and when Bankruptcy is not allowed people suffer. If we ALL loved God, we'd have no debt!

[JRMCNEA]

@axeld93 The problem when we come to the table with bankers being "careful" they threaten with economic collapse. When they realize their financial blunders they don't fess up, they send the market into a nose dive attempting to recoup as much investment as possible.You can't negotiate a truce with people entrenched in protecting their way of life. interest is not a tool to stabilize as we have been taught. it is a tool to gain money, without production of anything. And in turn is insidious.

[JRD123456]

CREDIT UNIONS! 

[fractalshift]

I have often wondered why, when ever we make an attempt at globalism why the economies fall apart, it's happened 3 times now, twice in modern times..it's because there is no one else to 'take' from to balance the domestic system. If everyone has a hand in everyone elses pockets the last guy in the line gets stuck with the bill. Very much like musical chairs!

[axeld93]

Oh, so the money cycle DESTROYS the economy does it? This is where this video starts to make no sense...

[unmarkedX]

@axeld93

well if not that then NOTHING does!

so the economy is just fine!

you are right

That makes a whole lot more sence!

[axeld93]

@unmarkedX I'm not saying the economy is fine, don't put words in my mouth. Do you actually know anything about economics at all mate? Taken any university courses, high school classes, anything??

[unmarkedX]

@axeld93

lol

wow! you took a course?!

tell us then wise one

what IS wrong with it then?

we are in the BUST phase...

anyhting else?

[axeld93]

@unmarkedX I'm saying that the problems are all known and easily identifiable. But to simply declare all debt, all inflation, and all central banking EVIL, a CONSPIRACY and [insert ridiculous emotive word here]. It's completely black and white. Just because 9/11 happened, does that mean we should ban all air travel? No. We just have to be a lot more careful. Exactly the same here.

[TheBDASays]

Interesting and informative series but it starts to unravel here. How can individuals lending to each other effect recycling? Firstly it's rare, more importantly a loan can be repaid with any dollar - not the original one that was lent! So loans clearly remain payable even if money becomes involved in a period of secondary lending. Our money system works on INCENTIVE, economies ditched the gold standard for a good reason I'm all for better/fairer banking but the alternatives given here are worse

[axeld93]

@TheBDASays Completely right mate.

[zefvor]

@Xasew

Deficit spending is the real "printing of money". There was lot of deficit spending during WW2, which cured the economy. Quarter century after WW2 is known as Golden Age of Capitalism, high growth, no crises. This is because "government debt" levels were high. Govd. debt is private sector asset. It's our wealth.

[Xasew]

Ok now this is going in the wrong direction. Parts I & II were still pretty good; this is not.

[GSNRecords]

People saying vague, undefined shit like, "No, you're wrong!" is what has helped this system prosper and expand. Either explain what you mean, or fuck off, cause you sure as shit aren't contributing to social productivity otherwise.

[Xasew]

@GSNRecords

In part 3 some of the effects of fractional reserve banking are described well, but the underlying theory isn't good. ABCT is better IMO. And to say that this spiral of destruction can't be turned around without government printing presses simply isn't true. The Fed didn't do "nothing" from 1929 onward, which can be easily checked by simply looking at either M0 or the funds rate. And to say WWII lifted the economy back up is ridiculous(Robert Higgs - Depression, War, and Cold War)

[Xasew]

@Xasew

Interest also isn't a gain "for simply having money" and under a gold standard the lenders most certainly do not end up with all the money. This claim is refuted by both theory and history. History of Rome completely distorted and Gresham's Law obviously isn't understood here. Money circulation between borrowers is ignored in the dealing of whether loans can be paid off or not(the 100% recycling fallacy). It's not ALL bad, though.

[alexkwilliams]

subscribe to me for a subscribe back!

[TheOljarhead]

Another point I'd like to make is that the video fails to bring in the FED when appropriate. Perhaps a read of Thomas Woods 'Meltdown' or Griffins 'The Creature' is in order.

Also, the pie in the sky ideas at the end of the first series won't work. Silver and Gold do and will -- re-read those two books to learn how -- then remake the video :)

[TOWLIBAN32123]

what a grim situation humans are living in. very grim cycle

[Titan360]

Wait, wait...wait.....A "non-bank lendor?" Does this mean if for instance an individual on her lonesome decides to charge interest on a neighbor's debt to them, that that fucks up the entire money system?

Isn't the dollar still out in circulation? How exactly does this mess everything up, assuming the corporate banker in fact wasn't hoarding some amount of money?

[LuqmanNaq]

@Titan360 type the term 'shadow banking system' into a search engine, it'll give you an insight into the type of secondary lenders that the maker is referring to.

[venuecam]

If all money is debt then why do we not simply abolish money as we know it. Work locally for what you need to survive. Help your own community first. Take care of friends and family and keep yourself healthy. Exchange goods and services.

Do this and money will disappear for good.

[Socrates469399]

@venuecam but at least you have an idea thats more than i can say. I had one but it was kind of destroyed by the video. because it would again create a bigger problem than what we want. So im still thinking on how and when i do i will share it with you and see what you think. It would be in a message. because i hate having a character restriction on the comments lol

[SirSmokeal0t]

@Socrates469399

Post it anyway.

Sharing is the only 'weapon' we have.

[venuecam]

If all money is debt then why do we not simply abolish money as we know it. Work locally for what you need to survive. Help your own community first. Take care of friends and family and keep yourself healthy. Exchange goods and services.

Do this and money will disappear for good.

[Socrates469399]

@venuecam I hate "survival of the fittest" i think its just an excuse people give to act like animals. We are civilized people, and we dont have to go off of that anymore we are no longer cave men. I like your idea of the abolish money thing. But then the rest of the world we trade with would have to do the same. And that would i feel create a bigger problem than we would want.

[venuecam]

@Socrates469399 over time, say one hundred years it wouldn't be a problem. have a look at the monetary system before the gold standard was taken away. Very little inflation and your earnings were back by something of value. Now the buying power of your earnings fluctuates on a daily basis. In 100 yrs that's what has happened. It'll take another 100 to reform.

[Socrates469399]

@venuecam I agree again. but again thats so many more people who have died because of the system. 100yrs. I want to see the reform. Lol but like i said im going to pm you my idea of a system, and your input will be very much appreciated. So please read reply. Thanks :-)

[venuecam]

@Socrates469399 in all honesty complete reform in our lifetime will only take place by fighting and revolt. It took this long to get where we are now and it'll take just as long to change again.

[SomethingSea1]

@Socrates469399 "I hate "survival of the fittest" i think its just an excuse people give to act like animals."

Survival of the fittest is such a misnomer. The irony comes when people "acting like animals" is detrimental to survival. The "fittest" does not imply sticking out for number one. In certain cases, it does. However, with humans, this generates poverty, hunger, and death. Voluntary Cooperation, is actually what is survival of the fittest for us.

[venuecam]

If all money is debt then why do we not simply abolish money as we know it. Work locally for what you need to survive. Help your own community first. Take care of friends and family and keep yourself healthy. Exchange goods and services.

Do this and money will disappear for good.

[Socrates469399]

@venuecam Thanks for replying back. And the way you replyed to my comment you think with great sense and logic. I see alot of people comment on other videos and they just say things they hear on the news. but you think with logic.and independent I admire that.

[venuecam]

@Socrates469399 respect

[venuecam]

If all money is debt then why do we not simply abolish money as we know it. Work locally for what you need to survive. Help your own community first. Take care of friends and family and keep yourself healthy. Exchange goods and services.

Do this and money will disappear for good.

[Socrates469399]

@venuecam You have a great point and your right. But if there was no capitalism there would be no corporatism. They are 2 different definitions but its a cause and effect scenario. The cause is Capitalism and Effect is coporatism. I dont like the idea of communism cause thats not freedom and i dont like capitalism because it creates people and banks like these scum. So like the video said we have to think outside the box to get an answer that works for all the people and is fair and equal.

[venuecam]

@Socrates469399 Corporatism is not an effect of Capitalism it is the bastardisation (greed) that Capitalism gets subject to by those unfit to fullfill their duty in the ideal. Capitalism can exist for abundance only right now there are too many men and women who selfishly fulfill their own greed before doing what is actually needed to be done.

[Socrates469399]

@venuecam Yes again correct but Capitalism does nothing to keep this greed in check, but how can you greed is part of human nature. But if we create a better system, we can make it so the greedy ones cant take from the rest of us. Thats why its a cause and effect. but i have an idea of a system that i want to share with you, it will be in pm because i dont want to deal with the character restriction.

[Socrates469399]

@venuecam If your part of the 1% who are very wealthy stay that way i dont want your money. but just dont forget about the other 99% of the people. You dont have to make them rich but there should be a job for them, and a home, and healthcare. Then i believe that would make it equal. The rich are rich and the rest have the basic needs to survive thats whats fair and equal are. Like you said take care of our families and friends.

[venuecam]

@Socrates469399 what you just decribed is true Capitalism. Free Markets. The ability to choose how much you want to earn. If only those who got extremely rich didn't scheme to limit the majority from doing the same so they can stay at the top by buying our elected officials...

David Rockerfeller and co I'm looking at you.

[Socrates469399]

And again this is capitalism, this is free market, this is every man for himself, this is survival of the fittest this is the economic system that so many praise. But when we watch a video like this capitalism doesnt look so great. You cant say our citzens can be capitalist but our government officals and our bankers cant be. Because all in all they are citzens too.

[venuecam]

@Socrates469399 this is far from capitalism. It is corporatism by big business who are literally making all the decisions about what happens to we the people with their payoffs to govt officials.

When our govt starts taking over all services that were once part of capitalism and then issue them to we the people as "rights" you then have communism. This is where the U.S. is headed make no mistake.

[Socrates469399]

Really, if this video is dead on accurate which it sounds like it is. This is just stating what i have been saying this whole time. The way our economy works has to change. Like it said it takes thinking outside the box to come up with a solution. I dont think, we have a better answer than our government right now. I dont think you can say you truly know how to fix it. but it has to change it has to be a reform in this catergory.

[LucVNO]

Neo-political thought: no more left vs. right only freedom vs. slavery.

the left-right political spectrum is always thought of as a line, but in reality is a parabola, like they teach in quadratic equations. In the center you have freedom, the "point" of the parabola, at either end, left or right, you have fascism.

In the end it really doesn't matter if government is all business or all businesses are government, its the same thing, the slavery of the people.

[cds162]

so there is no way out.. no matter what happens or who is president this is all going to come falling down on us..

it was bush

it is now obama

it will be ____________

can you see how we are all being played??

it's not left or right..

it us against them

[studentofsmith]

The argument at 3:35 is missing an important point. Lenders will eventually run out of creditworthy borrowers and be unable to expand their loans. Credit is a financial service for which there is a limited demand. Once the market demand for credit is met lenders will need to either spend or hoard interest payments. I am uncertain what the market demand for credit is but I'll wager it's less than 100%.

[rp1816]

But didn't the so-called NINJA loans show that when banks do run out of creditworthy borrowers, they will by necessity move on to risky borrowers and then flat out unsafe borrowers. Market demand for credit is never capped so thinking in terms of percentage doesn't really work (in that what would market demand for credit at 100% look like?). What is key is that owing to the banks continual need for short-term credit for cashflow, and longterm credit for investment, demand only increases.

[studentofsmith]

The only reason the banks made so many bad loans is because the US government, in an attempt to increase home ownership, guaranteed the mortgages of people to whom the banks would otherwise have been unwilling to lend money.

In a nutshell, the banks weren't risking their own money.

[rp1816]

Absolutely, but that still means they won't run out of people to lend to. In the US and here in the UK, the money they've been given as bailout is for the purpose of lending. In the UK, government did not guarantee mortgages. The demand for mortgages was much higher than the bank's ability to cope with mass default., and yet the banks met the demand. You're right to say there is a limit on creditworthy borrowing, but UK banks were lending to everyone.

[studentofsmith]

I am not familiar with the UK situation but if the banks were giving out risky loans I guarantee you someone else was assuming the risk.

Banks may not run out of people wanting to borrow money but (absent government intervention) they will run out of people to whom they are willing to lend money.

Think about it, would you lend money to someone unless you were reasonably sure they would pay it back? (Or unless someone else was assuming the risk of default?)

[rp1816]

I wouldn't lend money in that situation no, but the banks did. Matt Ridley was forced to resign as chairman of Northern Rock for not recognising the risks of the bank's financial strategy, and senior management were condemned by parliament and the FSA. I think we assume the banks compentently and soberly access risk all the time, but the situation since 2007 and the first fallouts show they don't. They weren't being backed by government, they had to go cap in hand after a bank run.

[studentofsmith]

The risk of bank runs are one reason I'm opposed to the fractional reserve system. That being said the banks financial woes demonstrate that any lender who refuses to recognize risk in an attempt to gain total control of the money supply (3:35) will face increasing defaults, frustrating their monopolistic ambitions.

The government should have covered depositors but otherwise not have bailed out bad banks. Doing so creates a moral hazard. Some banks were prudent, let them gain market share.

[jimsrf]

I like these videos, and they are mostly true, however something needs to be cleared up. Roman citizens'  hoarding of gold was done because the gov't FIRST debased the coinage to pay for expansion of the empire. In a non-inflationary society, removal of gold from circulation would only serve to increase the purchasing power of the remaining ounces. In Rome, the inflation, caused by gov't debasement, came first--and the citizens responded.

[studentofsmith]

Moreover the increase in the value of gold will provide a powerful incentive for miners to dig more of it out of the ground, offsetting to some extent the deflationary effects of hoarding.

[unytcommsys]

Gold is in a lot of the worlds electronics. The ancient ones had it right - invest in gold futures. Hydrogen, water, anything that is required for everything else is valuable.

[TaffyAlpha]

No wonder our government doesn't give a shit about our rising deficits!

[Otevra13]

I like it and it still needs to be simplified

[theincredibledouche]

i think we should just destroy civilization every hundred years or so

[gatsu6969]

theincredibledouche living up to your name i see

[swiftjeff]

That usually seems to happen every 200 or so.

[unytcommsys]

1000(s) of years. Check how long the greatest civilizations have last. Normally 1000+/-.

[BenU314159]

Right, just make sure you do it right before I am born... and then wait till just after I am dead to do it again.

[TheBelgradePhantom79]

@theincredibledouche hahaha

[etzel33]

You guys are looking at this the wrong way. This is a How To video for ripping off everyone in your community. lol

[xadam2dudex]

P = P + I has resulted in the amassing of huge wealth in the hands of a limited number of people.. top 1% of the US population own as much as 95% of the rest of the population.. this video is right on for 1929 and 2008 events..mortgages make banks wealthy from long term loans

[APB187]

END THE FED!

[ScorpiusIncorruptus]

This is the first time that I have ever said this, but audit the Fed!! Those pricks have taken so much...

[xadam2dudex]

when u have power u can legalize theft and call it moral.. in the last couple of decades what use to be usury or a loan shark is now normal practice

[garden333]

watch some of the straw man videos

[baigandine]

If you borrow to repay past debts at a lower interest you're not "creating more hole."

[TheLivingDeadOne]

Did anyone watch Peter Schiff videos voretell this 3 years ago,. do a search,. amazing video as hes laughed at in 2006 2007, and other saying buy banks like CITI. These videos will blow your mind.

[TheLivingDeadOne]

Do a run on citibank,. Withdraw all your money,.lets see what happens,.

[LuqmanNaq]

lol love the idea

[john5246]

@TheLivingDeadOne

LMAFAO!!! Nothing happens, they get bailed out, and as this video points out it's our own money that Citibank would get. You can't beat them because they're playing with YOUR (our) money.

And I did remove my money from Citi

[StructuredDRIVING]

@TheLivingDead One ..I got one up on your idea !.

I stopped paying the parasites about 18 months ago over issues with abusive ,belittling and distressing phone calls,so I reckon we could all do it.

Yes !,It would be interesting to see the resultant upheaval !.

[StructuredDRIVING]

@TheLivingDead One ..I got one up on your idea !.

I stopped paying the parasites about 18 months ago over issues with abusive ,belittling and distressing phone calls,so I reckon we could all do it.

Yes !,It would be interesting to see the resultant upheaval !.

[TheBDASays]

@StructuredDRIVING Most people want credit and so need banks

[NETWizzJbirk]

@TheLivingDeadOne The Federal Reserve is in on the scam, too... they will make good on CitiBank's empty promises by making more empty promises.

[hdzsound]

@TheLivingDeadOne

they dont keep cash at banks

We did this once,

You almost have to called them and get it prepared.

[TheLivingDeadOne]

Stop taking loans PEOPLE!

[roninmd]

Refusing to take loans is not the answer. That will just affect the economic system in one direction. What we need to do is altogether is replace the entire economic system with something better. Perhaps a resource based economy or a participatory economy.

[TheLivingDeadOne]

Hi, Maybe you didnt watch the entire series of videos, or missed the bailouts of the zombie banks with tax payer money, only for them to use it, to gamble in the stock market, raise your credit APR, and pay insaine amounts of money to one person for F'ing up. I use my cards to establish a creditscore that is now EXC, but i dont buy anything I dont need beyond what i can afford. Dont you hear Wall str crying we the people dont want a recovery cause we dont want to spend indescrimenitely?

[dieyoubastards]

@roninmd pretty vague and untenable solution for the common people

[LuqmanNaq]

@roninmd It will help, the US needs to produce and save, the economy needs to balance itself (too much growth without contraction) but the politicians are trying to prop up failing businesses and prices by stimulus packages that encourage borrowing and spending. Once the dollar ceases to become the global reserve currency (or china and Japan dumps it) the US is screwed because of the Trade deficit. The dollar only has value because other productive economies has it as their reserve currency

[delyparker777]

@roninmd, The Secret of Oz gives you SOLUTIONS to the economic crisis. Check it out and don't forget to tell a friend.

[deguesstheboxingfan]

@roninmd Take out loans from the bank and challenge the foreclosure of your property. It's not like the bank gave you anything of value in the first place.

[unmarkedX]

@roninmd

how bout just outlawing usury again?

[boodogradly]

i wish there was an educational video game about this. Like drug wars, but instead you were a Bankster loaning out money, causing wars, media takeovers, political hits, etc....and the player needs to use the basic mechanisms of banking to play and win.

[therealmetroidmaniac]

now thats a game i'd play

[brig2221]

I believe it's because none of the remaining parts of the video series were linkable from the first video. I had to view all of the users videos in order to find and watch the remaining videos in the series.

[compelled2283]

I took your advice and added a link to the full play list in the info box. Thanks ; )

[Ashinow]

How come this video now have like 883 viewers, but  part 1 had above 5000 viewers? Isn't that strange?

[bcmalloy]

Part one is linked to from various web sites, so many will watch the first part and decided not to watch the rest..... wanna make some money start a bank

[farquoi]

probably because the first two minutes of the first video are absolutely terrible. It's two minutes of scrolling text and motion graphics and no indication of a narrator, nothing that grabs you. I'm only watching because I knew the revious Money As Dept. They should kill all the scrolling quotes,this is not approriate for youtube and many are way too long.

[TheLivingDeadOne]

Its because people are stupid and not enterained immediately, they leave and go watch some other video,. but unlike mysoelf. i watched it all, and more,.When you get to the end of the road to knowledge,. you will surely understand more, but they didnt want to learn