in other words the FR makes e.g $100 000 and lends it to the banks at an interest rate who lends it to u aat an interest rate (simplified) if the FR is the only one who can create money then they are owed e.g $101 000 yet the entire country only has $100 000 circulating, which in essence will grow debt forever.. hence the constant collapses.. we need a better system
Paper money backed by land. There is a book I'd recommend you to read. "Money and Trade Considered, With a Proposal for Supplying the Nation with Money". It was written in 1705 by a man named John Law. He is not only the father of the fiat/debt-based monetary system, he's also the father of Keynesian economics. What you're describing is an out-right ponzi scheme, and that's exactly what our banking system is. Good work.
He had me right up to the point where he had the 3 banks. At that point, I felt as if I should have been on Ritalin. I'll have to try watching the bank portion again after I've had more caffeine.
I used to believe Zeitgeist, but then I realized its too perfect of a plan, its possible that its all a coincidence and there's a possibility that it isn't, regardless of the two, this system isn't corrupt free and its flaws are seen on a daily basis, there needs to be a radical change in the government.
@Alec0124 Everything everyone pokes at makes sense, there is more room for coincidence then the big plan....corruption yes, do i like the federal government no.
@MrSupernova... The movie "Zeitgeist" wanna show us some ways of manipulation by others. The people watch it and they believe this stuff to 100%, without to think about it for herself. This is also nothing else than a manipulation. Especially the first parts are not free from wrong facts. So what, it seems people believe in everything, if the majority does it. Therefore they should discover their own brain. - it´s stronger than every education or university.
i dont get it! D: ...im not a dumb guy i just have trouble with numbers...and the quality of this video...no offense, isnt great so im having trrouble with the diagrams...does anyone know how / where i can go to learn this stuff i need diagrams lol =(
Explain the Canadian economy please. How is it that our dollar is higher but all our food and mech is more expensive. A $16,000 fully loaded car (PT Cruiser) in the US is $38,000 in Canada. Ouch. Everything from Food, housing and taxes is more here in Canada.
@1:00 "you go to a bank and say I need a hundred thousand dollars to buy a home. well the bank doesn't have that kind of money" Banks most definitely have the money that they loan out or they get it by borrowing that hundred thousand from some other bank that has it, at bank rate and then loaning it out at a higher rate.
( not typically borrowing from the Fed, as this poster is implying )
so much more misunderstanding, not worth mentioning.
wow.. that chart of how the bank system really works is impressive!
I have always said that the biggest fools on the internet are creationist and people that do not understand the fundamental underpinnings of our monetary system.
Humans figured out about 5000 years ago that we need money to trade goods. the monetary system is the only thing that works. Try bartering for a hamburger, probably not a problem, think about trying to barter for a car? What do you do that would meet the value of the car? Or all the pieces of the car when trying to make them?
just a question to anti fed people, how do you manage the economy without the fed?
@pachydermpower the problem here is the economy it self, our world is based in a consumerist economy, if you understand the concept of consumerism and economy, you will find that both words can't be put in the same sentence
5000 years after someone decide to invent money, you still use the same system, it wouldn't be a problem if the systems worked well, but the truth is that it doesn't (millions of people starving, millions of dollars in the pockets of people that didn't contribute to mankind)
@pachydermpower There's a very good video explaining the Zeitgeist Movement:
/watch?v=4Z9WVZddH9w&feature=related
I'm not saying that the Zeitgeist Movement and it's ideals are the solution, and we should venerate the people behind this, what I defend is that what they defend or at least a part of it is definitely part of the solution (I say this because I don't want to support ideas from people that I don't even know, and could have, as anybody else, their own agenda)
Gold heute(3.2.2011) + 33 $.Nicht Bernankes Aussagen waren heute maßgeblich,denn die kamen zeitumgerechnet später als der Goldsprung ansetzte.
Entscheidend waren die Aussagen des Antichristen,der 666,auf mmnews.de. Auch Eichelburg ,der baphometische Prophet des Goldes, tat auf seiner Webpage hartgeld.com sein übriges.
This is stupid. If we went by copper, silver, and gold, things would be much better. 2 copper coins = 1 mc. donalds burger. Therefore, less trees being cut down.
This guy got this video all mixed up. First banks don't just make copies of loan contracts and ask the central bank (Fed Reserve) for money. The central bank is there as a last resort which means if your bank gets a federal loan it means its in deep trouble and wont be good for shareholders - its called a bailout. Second is he assuming your bank is not going to charge you interest because you borrowed from your own money?? Must be a joke.
Its funny how this is just flying over everyone's heads. Don't you guys realize that the money is not being created out of thin air? You end up with $3000 in cds and $3000 in loans that you must pay back. The money comes out of your pocket on a monthly basis, your not getting free bank money. The difference with this system its you get the credit first before you pay all the loans off. At the end of the loan terms all the banks gets all the money back that you borrowed. Its not that hard
This is not how money works. Banks can only float 80 percent of their securities by law. Do some real research and stop relying on third party sources for your information. If you are holding a Federal Reserve Note, then you should find out what is promised to the bearer of that note. The smallest note is one dollar. Last time I cecked a dollar was one ounce of fine silver and selling at the price of 25.95 in Federal Reserve Notes!
You are very wrong sir. Our currency is not backed by anything. We left the gold standard in the early 30s. And banks are required to keep less than 10% of securities in their volts/books.
@MrSupernova111 I did not say anything about our currency being backed by anything in my comment. Federal Reserve Notes are promissory notes. What is promised on the note? A one dollar note is a promise to pay the bearer of the note one dollar. Well what is one dollar? One dollar is an ounce of fine silver. Currently, the United States mint sells one dollar silver coins for $25.95 in Federal Reserve Notes through subscription. See also 12 U.S.C. 411
I looked up the information you posted and I see what you mean about dollar silver coins now. But I think it's irrelevant to the topic of money creation. Look up Zeitgeist - Federal Reserve here on youtube to get a better understanding of money creation.
@MrSupernova111 This guy is not talking about money. Money is gold or silver. Federal Reserve Notes are exactly what they say they are - notes. Despite that discrepancy, banks currently float loans on 80% of their average daily asset base. They can not loan 10 times the amount of one loan after someone pledges to pay it back in a promissory note.
Zeitgeist is a terrible movie full of lies and disinformation. Why would you accept it as an authority on the creation of notes?
Wrong! The guy in the video is very much talking about money and the banks are only required to hold a 10% cash reserve ratio. Look up fractional reserve banking and cash reserve ratio. And yes, he got much of it wrong.
Second what you refer to as money is called a guilder - also look it up. Money is any type of object or record accepted as payment for goods and services. Have some sources next time you want to argue a point.
@MrSupernova111 From Black's Law Dictionary 6th edition - Money. In the usual and ordinary acceptation it means coins and paper currency used as circulating medium of exchange, and DOES NOT embrace notes, bonds, evidences of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W.2d 74, 79, 81 capital emphasis added
This is my last response since you are clearly not up to speed on US legal tender (money) history from the last 150 years and void of common sense.
Legal Tender Act and "greenbacks" 1862
National Bank Act 1863
The Aldrich–Vreeland Act 1908
Federal Reserve Act 1913
The Nixon Shock 1971
Also any current federal reserve note (a dollar bill) clearly says on the left side "This note is legal tender for all debts, public and private." Otherwise known as money!!
@MrSupernova111 In regards to legal tender, " What we do assert is, that Congress has power to enact that the GOVERNMENTS PROMISES TO PAY MONEY shall be, for the time being, equivalent in value to the representative of value determined by the coinage acts, or to multiples thereof. It is hardly correct to speak of a standard of value" Knox v. Lee 79 US 457. Clearly the courts distinguish between money and legal tender. If a note is a promise to pay money how could it be money? Its impossible!
@MrSupernova111 Additionally, the Federal Reserve Bank is a private corporation that rents Federal Reserve Notes to the United States, a private corporation formed in the District of Columbia Organic Act of 1871. Currently the notes are used to keep track of exchanges withing their corporate system. The fact that the Mint still produces silver coins with a face value of one dollar and sells them for $25.95 in Federal Reserve Notes ought to speak loudly to the difference between money and notes
You need to get off drugs kid. The point you think and making is pointless. The Fed Reserve was created in 1913 not 1871. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan. Call a fed note whatever you want, I can still use it to pay for things which makes it money.
@MrSupernova111 I prove that money is different than notes so you have to resort to try and discredit me through accusations of drug use. I said that Corp. U.S. was created in the Organic Act of 1871 not the Federal Reserve. The Federal Reserve Bank is most cetainly operated for profit. Why else would they charge interest on the notes they rent to the United States (Corp. U.S.)? When you mention laws perhaps you should cite them. You can call notes money all you want; but, it is incorrect.
@SimplyThinkDreams So when people are in too much debt, the only thing to substitute money is slavery. Which will be an endless cycle. Notes are not Money, Notes are just promises to pay back the private bank.
@AoifeStair Notes are promises to pay money but the promise is not always to a bank. I could borrow money from you and write you a note. In that instance, the promise would be to pay you and not a bank. Federal Reserve Notes are promises to pay the bearer of the note the amount specified on the note. If I am the bearer of the note, the promise is to pay me not the bank.
When people are in too much debt they usually file bankruptcy. In the old days they would sell themselves into service.
@MrSupernova111 In addition, the information I am presenting is extremely powerful if you know how to apply it to the right situations; however, that requires knowing the law in order to properly apply it. If A owes B a debt, and later on B becomes in debt to A, A must satisfy the debt with B before, B can be obligated to pay A. So if A is an agency of Corp. U.S. and they allege some debt, a person holding notes could force that agency to make good on the notes before being obligated to pay.
@MrSupernova111 Ariticle I Section 10 of the Constitution for the United States of America states, "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; MAKE ANY THING BUT GOLD AND SILVER COIN A TENDER IN PAYMENT OF DEBTS; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility. capital emphasis added
@MrSupernova111 You wrote, "Have some sources next time you want to argue a point." Perhaps you should take your own advice before shooting off your mouth about some information you saw in Zeitgeist. Movies are not authoritative sources regarding matters of law. Hopefully you learned an important lesson in relying on third party sources rather than doing your own research and proving the facts from the proper historical documents. If you would like to know more about law visit teamlaw(dot)org
Unfortunately a brain does not come with an education. If you want to know how money is created you must study it somewhere. Zeitgeist was only a suggestion since we are already here on youtube.
NO LO LEAS NO LO LEAS!!NO LEAS ESTO!!SI LO AS LEIDO COPIA Y PEGA ESTO EN 5 VIDEOS MAS SI NO LO HACES TU MADRE MORIRA EN 3 DIAS POR FAVOR HACEME CASO ES UNA MALDICION
one question u fucking idiot person in the video, u said urself, in this country money used to be backed up by gold. What is it backed up by, now??? hmmm good question right u fucking idiot.... any time the fed prints money its not backed up by gold, they essentially print it out of thin air and essentially for every dollar that it is printed it is loaned out and has to be payed off + interest. and yeah its perfectly legal right u fuckin moron this creates debt and the cycle repeats
i believe at this point money isn't actually printed , it's more like more credit is released, but for every dollar the federal reserve puts into circulation they have to have the same value in possession in the form of a US t-bill to back it up, that's federal law.
That is correct. The federal reserve does not have any real money. They just issue a check - or a electronic transaction now a days. Same thing happens when the banks lend someone money. The promisary note is the actual money since people don't actually get a bundle of money when they borrow. It's all electronic until you make a withdrawal at the bank.
You are incorrect when you say the cycle repeats itself. The cycle never ends because interest creates inflation and can never be paid back as the debt will always be bigger than the actual loan. The cycle started when the federal reserve was created and won't end until the federal reserve goes away. That is why the US debt continues to balloon and the fed has to keep printing money. In this system someone has to lose as I mention there is always a shortage of money vs debt.
I try that concept and still couldn't get $3,000. loan, due to the fact my credit score was 599 when it originally was 495. I had to repeat the system for a few years before I was consider worthy of getting a car loan or student loan, by a school or car dealer only. I rather invest my money in the gold market and silver, it works for me!
@artwearsusa its backed up by whatever is being produced. as he said in the beginning, the $100,000 loan in the first place is actually backed up by the value of the house that the loan is mortgaged against. in the same way, whatever is being manufactured or sold that has value is just as legit to back up printed money as is gold. gold is not the only thing that has value, it was used traditionally because it had a lot going for it back then: rare, portable, maleable, coinable, measureable, etc.
Here we go again... Money is not backed by anything - including your house. Money is printed by the federal reserve when the government issues US bonds (promisary note to repay) in exchange. Like I said out of thin air. Then the federal reserve charges interest which causes inflation so there is more debt than can ever be paid back. Then banks are only required to keep 10% of securities so now the bank can lend this money out several times over. I hope you understand better.
How about BANK being your partner,this way ordinary person in street can`t lose,bcz Bank will go half in your profit in business and also will invest your money in stock&shares for you,Also getting bank expertise,modern ILLUMINATI banks have turned ordinary citizens slave of interest system of Banks,Islamic banks not interest based,Free your self and JOIN Islamic banking system's !!!
CD certificate of deposit fixed term short term savings vehical. Problem is vast number of american middle class are upside down owe more than their assets can't borrow at low rates MIB is shrinking faster than Fed let's on. Money not being created due to 70 less in loans have been made ytd usa wsj artical
If only you prepared this explanation properly (e.g. using presentation slides) more people might be interested to share this and in turn you might get more viewers. just my opinion by the way
So what?Banks loan money so real whealth can be created, you sound a little resentful (maybe i'm wrong) .
The way it is supposed to work (when the government lets the professionals decide who to lend money to) is like this,you borrow $100,000 for material,$100,000 for labor and creat a home worth 270,000,thereby creating 70,000 worth of new wealth. the 100,000 in labor and 70,000 in profit, then are deposited or spent on the supply of other created wealth from other companies who pay employees
This is not how our money works!!! This makes no sense.
When you go to the bank and ask for a loan,
the bank will follow guidelines that are set by either Freddie, Fannie,FHA or some other portfolio who insures the loans. They are then pooled together and sold at auction to investors, mostly foreign. The Investors collect the interest and pay a small portion to the Insurer and the bank for servicing the loans. They keep doing this to generate more revenue.
congress needs money because there is no cash in the treasury, they ask federal bank to borrow from red china, they sell bonds, notes, then fed bank prints the money and treasury now has another 14 trillion dollars. the big scam.
When the bank loans money it is shifting economic power to the debtor. If the debtor can use the money to create economic return, then the act of money creation can turn into real capital creation. If this is the case, once the loan is paid off, and the real economy is richer and more active with trade, maybe the fed will print new currency bills.
Lmao. The bank does not send the borrowing agreement to the fed, so the fed can print currency. That is not how money is created.
The bank just gives you a credit of the loan. The limit to the banks ability to do this is determined by the cash reserve ratio set by the fed. The reserve ratio is determined by monetary policy and a level deemed to be safe (not at risk of the banks being unable to meet demand deposits).
The phone company comes out with this new invention, & then you buy it and then the next thing you know, youre paying 100+ dollars a month just to communicate. You the bumbass pays it, They get richer & you get poorer.
OFCOURSE there is a profit with the islamic way of commerce! but not money with money only! In the islamic way money with a real product which brings back money not only bonds and papaers in banks!!
it is difficult to buy a hamberger with a gold coin worth $1000.00 most places except pawn shop or coin dealers would find it difficult to exchange it for somthing you could buy .you could barter to exchange it for what you want.
@wbPROTIME why would a gold coin be worth 1000 usd.. and why would one consider a hamberger? as valuable as gold. Why are we even trading things which will not support your life such as gold for something that will support you life such as food? Why do we trade paper which in itself does not give our bodies nutrition.. Can you digest gold and turn it into energy so your body can function properly? Money is the root of all evil we need to destroy it
The system is based on scarcity. If the dollar was backed by dirt let's say then everyone could have as much as they like making the dollar worthless. I understand your argument but the value is perceived which can then be given a number and therefore you have your currency.
That's not how it works idiot. If money is backed by gold or silver you still get paper money. The difference is that the government can't simply print money out of thin air as they do now since there must be gold or silver backing it. Today the government can print money as they please because nothing backs up our currency.
it was much better when the dollar was tide to the gold, much more stable. Better for exports. Now it can more easily be speculated in. The system was changed under Nixon.
I find it funny that people feel safer having their hard earned money being stored in some else's vault. Investing in a highly secure vault, and keeping your own money seems to make more sense.
I thought the different banks would know from their system that you have loaned from the other banks. Will they approve this sort of triple or multiple loans?
That's a great idea. But out where I live, for SOME dumb reason the minimum is 2500 per bank. So it's great but it's also good to go to credit unions as well.
there is not enough printed money to pay for all the added interest. when the banks get all the property even the bankers starve because no one is on the farm
You are one of the few people, that I have heard after watching 100s of these Federal Reserve videos, who mentioned one of the key points to the Fed problem.
Which is, that there is more DEBT than money. People cannot seem to get this through their skulls. The problem isn't deflation through printing more money.
Our money is all credit based, so basically it is like a credit card. Credit cards, when spent, make it look like money is being spent and economy looks like it is doing fine.
But as we have to start paying back the loan the Federal Reserve gave us, the money flow starts to tighten.
Soon, people cannot pay for their mortgages. Businesses have to file bankruptcy, cause they don't have the cash to pay their debt. ANd who gets all these properties? The banks.
All federal reserve money should be thought of as credit cards. The IRS is the collecter.Give everyone in your city a credit card. Your economy will look booming for a while, until it starts to get paid back
There is nothing Federal about Federal Reserves....it is a Private Corporation. These people create money out of thin air.
We the people of the U.S is a Collateral for the Elite.....we back up the worthless piece of paper we call money. And we work so we can pay the interests the Government borrow from the Federal Reserve....it is a big scam..
there is allot of confusion about fractional reserve banking. the banks DO multiply the money times 10. However they do this through all the banks together and not individually. this sounds more confusing. PLEASE look it up on wikapedia then you will see. there are charts that show how his works. this guy doesnt have it 100% right. go to wikapedia and type in FRACTIONAL RESERVE BANKING. that is how it really works. this guy is wrong. it is a crime. please reserch.
Yes. This guy got it very wrong. For one commercial banks dont take copies of consumer loan contracts and ask the federal reserve for money. The federal reserve (central bank) is only there as a last resort - not as a business partner. Second even if you borrow from your own money the bank will still charge you interest and you will end up losing money just to earn a few credit rating points. How about you pay your bills on time and let credit rating take care of itself?
Not only can they, they do in the US. It is called Fractional Reserve. The note you carry in your pocket or purse is only an IOU. People think it is money. This is why we are in a really bad economic situation. However what this guy says is not exactly legal and I would not recommend it. Only banks and the government can do this, not you and I.
"Wrong. They must reserve a portion of your deposit. That means they can loan less than deposits, not more."
That is why it is called fractional reserve. One bank can only loan out 95% of the deposit to keep it's solid rating. However, the banks loan to other banks and it multiplies. The problem with banking right now is they have bets upwards of 100 times more than equity
I have a batchelor's degree in Banking and Finance from the University of London. I do now a little about banking.
"Then you shouldn't repeat the canard that a bank can loan out $ 10,000 when I deposit $ 1,000."
I never said A bank does. But your $ 1000 become $ 10,000. Reality is that $ 1,000 turned into over $ 100,000 during the real estate bubble with all the derivatives. That is why banks are needing to be bailed out so much.
But I'm sure you would never believe that one either. Search the Federal Reserve website and you can find the answers for yourself if you know where to look.
Over all there is not enough money in the system to pay back all of the interest.This means there is way more debt than credit, and the difference will keep increasing more and more quickly with time.
He forgot to mention the governments role in this counterfitting process. Instead of raising taxes, the government can just go to the federal reserve for a loan instead. The government uses that money for whatever purpose, and as it flows through our economy prices go up due to the inflated money supply. It's a hidden tax. How else can the national debt be so high? Does anyone really believe that we owe all $10 trillion to China? And where did that "money" for the loan even come from?
3:57 is not true. You mis-understand fractional reserve requirements. You multiply the money that was deposited by the fractional reserve requirement and then subtract the dividing of this new amount from the new amount. This is wrong, you can only multiply with high powered money stored at the central bank! You cannot loan $9000 with your $1000 deposit. You can only loan out $900, and if the fractional requirement is 1/10
how about the interests!! usury is what damages the American economy as a whole believe me! all religions prevent it and think:
money with money increasing without real products!!
while the islamic veiw is money with money ecreasing with real products anyone didn't understand me could talk to any near islamic center in your country or read about the islamic finance system to realy find the safest way.
Thanks for the vid. It was quite informing to me since I've recently been wondering how the whole money system really works and if there would be a better system to use some day.
It was a little confusing with the bank stuff, but I will keep doing research.
QUESTION. I am confused when you say that we deposit the $1k into a CD in bank A, then the bank loans you the $1k (or 95% depending on the bank) back to you using the CD as collateral. my question is, the interest on the loan to you, isn't it usually higher than the rate of the CD? so essentially, when your CD matures, and when you pay off the loan (b/c the loan is usually for the same time as the CD maturation), you will OWE money because of the higher rate on the money that you BORROW.. yes?
The real system is hard to understand :P But this guy has some false information to it. For example, if you deposit $1000 at the bank, the bank can't loan out $9000 but only $900.
Awesome explanation
paydayloansturbo 2 weeks ago
in other words the FR makes e.g $100 000 and lends it to the banks at an interest rate who lends it to u aat an interest rate (simplified) if the FR is the only one who can create money then they are owed e.g $101 000 yet the entire country only has $100 000 circulating, which in essence will grow debt forever.. hence the constant collapses.. we need a better system
GrahamHardacre1 1 month ago
BORING :D
sartepex 2 months ago
this is all called economy
falah99uae 3 months ago
Holla! Have you considered Megamaxi Money Maker (just google it)? Ive heard some incredible things about it and my work buddy got plenty of cash.
MrMrDizzle 3 months ago
Paper money backed by land. There is a book I'd recommend you to read. "Money and Trade Considered, With a Proposal for Supplying the Nation with Money". It was written in 1705 by a man named John Law. He is not only the father of the fiat/debt-based monetary system, he's also the father of Keynesian economics. What you're describing is an out-right ponzi scheme, and that's exactly what our banking system is. Good work.
TheManiacalSatanist6 5 months ago
Zeitgeist Is farfetched, there are some facts but a lot shite.
AlamBarzakh99 5 months ago
He had me right up to the point where he had the 3 banks. At that point, I felt as if I should have been on Ritalin. I'll have to try watching the bank portion again after I've had more caffeine.
skiextreme2007 7 months ago
I'm still having a hard time understanding how money circulates!
rebelq1 7 months ago
I used to believe Zeitgeist, but then I realized its too perfect of a plan, its possible that its all a coincidence and there's a possibility that it isn't, regardless of the two, this system isn't corrupt free and its flaws are seen on a daily basis, there needs to be a radical change in the government.
arayagerardo 7 months ago
@arayagerardo what do you mean its too perfect of a plan?
Alec0124 5 months ago
@Alec0124 Everything everyone pokes at makes sense, there is more room for coincidence then the big plan....corruption yes, do i like the federal government no.
arayagerardo 5 months ago
@MrSupernova... The movie "Zeitgeist" wanna show us some ways of manipulation by others. The people watch it and they believe this stuff to 100%, without to think about it for herself. This is also nothing else than a manipulation. Especially the first parts are not free from wrong facts. So what, it seems people believe in everything, if the majority does it. Therefore they should discover their own brain. - it´s stronger than every education or university.
matjesworld 7 months ago
Sorry Sir, I could not understand from your video. Please send me a simple written text on this topic. Thanks in advance.
svtuition 7 months ago
i dont get it! D: ...im not a dumb guy i just have trouble with numbers...and the quality of this video...no offense, isnt great so im having trrouble with the diagrams...does anyone know how / where i can go to learn this stuff i need diagrams lol =(
RustyRocktopus 8 months ago
THis sounds like slavery...
manny298 8 months ago
Explain the Canadian economy please. How is it that our dollar is higher but all our food and mech is more expensive. A $16,000 fully loaded car (PT Cruiser) in the US is $38,000 in Canada. Ouch. Everything from Food, housing and taxes is more here in Canada.
pkrska 9 months ago
The Fractional Reserve Pyramid Scheme
Pyramid schemes are illegal in the U.S. Yet that's how we run our country?
RevoltorAdapt 9 months ago
@1:00 "you go to a bank and say I need a hundred thousand dollars to buy a home. well the bank doesn't have that kind of money" Banks most definitely have the money that they loan out or they get it by borrowing that hundred thousand from some other bank that has it, at bank rate and then loaning it out at a higher rate.
( not typically borrowing from the Fed, as this poster is implying )
so much more misunderstanding, not worth mentioning.
GaussTruth 9 months ago
wow.. that chart of how the bank system really works is impressive!
I have always said that the biggest fools on the internet are creationist and people that do not understand the fundamental underpinnings of our monetary system.
This is no creationist.
GaussTruth 9 months ago
Comment removed
The7legacy 10 months ago
Humans figured out about 5000 years ago that we need money to trade goods. the monetary system is the only thing that works. Try bartering for a hamburger, probably not a problem, think about trying to barter for a car? What do you do that would meet the value of the car? Or all the pieces of the car when trying to make them?
just a question to anti fed people, how do you manage the economy without the fed?
pachydermpower 1 year ago
@pachydermpower the problem here is the economy it self, our world is based in a consumerist economy, if you understand the concept of consumerism and economy, you will find that both words can't be put in the same sentence
5000 years after someone decide to invent money, you still use the same system, it wouldn't be a problem if the systems worked well, but the truth is that it doesn't (millions of people starving, millions of dollars in the pockets of people that didn't contribute to mankind)
PortuguesePunisherrr 11 months ago
@pachydermpower There's a very good video explaining the Zeitgeist Movement:
/watch?v=4Z9WVZddH9w&feature=related
I'm not saying that the Zeitgeist Movement and it's ideals are the solution, and we should venerate the people behind this, what I defend is that what they defend or at least a part of it is definitely part of the solution (I say this because I don't want to support ideas from people that I don't even know, and could have, as anybody else, their own agenda)
PortuguesePunisherrr 11 months ago
@pachydermpower I don't think money itself is a problem here, but how we value it.
tehboyscout 4 months ago
i did it went on holiday 4 times,bought nice clothes and i owe over £50,000 now!!
utuberocker40 1 year ago
Very intresting.
sub from me
IamRIDAH 1 year ago
Scarey a system doomed to fail and crash befor being fixed lmao.
StartswithASeed 1 year ago
This has been flagged as spam show
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SwissProsperity 1 year ago
@MrSupernova111 has His/Her point!
I am holding a £10 note in my hands, it's stated on it:
BANK OF ENGLAND I promise to pay the bearer on demand the sum of TEN Pounds.
So I'm going to the bank, HI Here is my £10 note I vant the £10 "sum" as you promised.
-Ok Joe, no prob' give me that note.
-Here it is Mr bank.
-Ok now I give you the "sum" of £10, here you go !
-fuck, is the same note I gave to you !
-Well that's stated on it you moron!
falconryforever 1 year ago
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Gold heute(3.2.2011) + 33 $.Nicht Bernankes Aussagen waren heute maßgeblich,denn die kamen zeitumgerechnet später als der Goldsprung ansetzte.
Entscheidend waren die Aussagen des Antichristen,der 666,auf mmnews.de. Auch Eichelburg ,der baphometische Prophet des Goldes, tat auf seiner Webpage hartgeld.com sein übriges.
DerAdler2 1 year ago
This is stupid. If we went by copper, silver, and gold, things would be much better. 2 copper coins = 1 mc. donalds burger. Therefore, less trees being cut down.
AoifeStair 1 year ago
@AoifeStair How many trees do you think they cut down to mine for copper dumbass?
pachydermpower 1 year ago
@pachydermpower A lot of trees, I'm not a dumb ass.
AoifeStair 1 year ago
This guy got this video all mixed up. First banks don't just make copies of loan contracts and ask the central bank (Fed Reserve) for money. The central bank is there as a last resort which means if your bank gets a federal loan it means its in deep trouble and wont be good for shareholders - its called a bailout. Second is he assuming your bank is not going to charge you interest because you borrowed from your own money?? Must be a joke.
MrSupernova111 1 year ago
Its funny how this is just flying over everyone's heads. Don't you guys realize that the money is not being created out of thin air? You end up with $3000 in cds and $3000 in loans that you must pay back. The money comes out of your pocket on a monthly basis, your not getting free bank money. The difference with this system its you get the credit first before you pay all the loans off. At the end of the loan terms all the banks gets all the money back that you borrowed. Its not that hard
unkerpaulie 1 year ago
This is so true... Thanks for sharing this video.. I never thought how money works before. But now I know..
markfuller042 1 year ago
This is not how money works. Banks can only float 80 percent of their securities by law. Do some real research and stop relying on third party sources for your information. If you are holding a Federal Reserve Note, then you should find out what is promised to the bearer of that note. The smallest note is one dollar. Last time I cecked a dollar was one ounce of fine silver and selling at the price of 25.95 in Federal Reserve Notes!
SimplyThinkDreams 1 year ago
@SimplyThinkDreams
You are very wrong sir. Our currency is not backed by anything. We left the gold standard in the early 30s. And banks are required to keep less than 10% of securities in their volts/books.
MrSupernova111 1 year ago
@MrSupernova111 I did not say anything about our currency being backed by anything in my comment. Federal Reserve Notes are promissory notes. What is promised on the note? A one dollar note is a promise to pay the bearer of the note one dollar. Well what is one dollar? One dollar is an ounce of fine silver. Currently, the United States mint sells one dollar silver coins for $25.95 in Federal Reserve Notes through subscription. See also 12 U.S.C. 411
SimplyThinkDreams 1 year ago
@SimplyThinkDreams
I looked up the information you posted and I see what you mean about dollar silver coins now. But I think it's irrelevant to the topic of money creation. Look up Zeitgeist - Federal Reserve here on youtube to get a better understanding of money creation.
MrSupernova111 1 year ago
@MrSupernova111 This guy is not talking about money. Money is gold or silver. Federal Reserve Notes are exactly what they say they are - notes. Despite that discrepancy, banks currently float loans on 80% of their average daily asset base. They can not loan 10 times the amount of one loan after someone pledges to pay it back in a promissory note.
Zeitgeist is a terrible movie full of lies and disinformation. Why would you accept it as an authority on the creation of notes?
SimplyThinkDreams 1 year ago
@SimplyThinkDreams
Wrong! The guy in the video is very much talking about money and the banks are only required to hold a 10% cash reserve ratio. Look up fractional reserve banking and cash reserve ratio. And yes, he got much of it wrong.
Second what you refer to as money is called a guilder - also look it up. Money is any type of object or record accepted as payment for goods and services. Have some sources next time you want to argue a point.
MrSupernova111 1 year ago
@MrSupernova111 From Black's Law Dictionary 6th edition - Money. In the usual and ordinary acceptation it means coins and paper currency used as circulating medium of exchange, and DOES NOT embrace notes, bonds, evidences of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W.2d 74, 79, 81 capital emphasis added
SimplyThinkDreams 1 year ago
@SimplyThinkDreams
This is my last response since you are clearly not up to speed on US legal tender (money) history from the last 150 years and void of common sense.
Legal Tender Act and "greenbacks" 1862
National Bank Act 1863
The Aldrich–Vreeland Act 1908
Federal Reserve Act 1913
The Nixon Shock 1971
Also any current federal reserve note (a dollar bill) clearly says on the left side "This note is legal tender for all debts, public and private." Otherwise known as money!!
MrSupernova111 1 year ago
@MrSupernova111 In regards to legal tender, " What we do assert is, that Congress has power to enact that the GOVERNMENTS PROMISES TO PAY MONEY shall be, for the time being, equivalent in value to the representative of value determined by the coinage acts, or to multiples thereof. It is hardly correct to speak of a standard of value" Knox v. Lee 79 US 457. Clearly the courts distinguish between money and legal tender. If a note is a promise to pay money how could it be money? Its impossible!
SimplyThinkDreams 1 year ago
@MrSupernova111 Additionally, the Federal Reserve Bank is a private corporation that rents Federal Reserve Notes to the United States, a private corporation formed in the District of Columbia Organic Act of 1871. Currently the notes are used to keep track of exchanges withing their corporate system. The fact that the Mint still produces silver coins with a face value of one dollar and sells them for $25.95 in Federal Reserve Notes ought to speak loudly to the difference between money and notes
SimplyThinkDreams 1 year ago
@SimplyThinkDreams
You need to get off drugs kid. The point you think and making is pointless. The Fed Reserve was created in 1913 not 1871. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan. Call a fed note whatever you want, I can still use it to pay for things which makes it money.
Have a nice day!
MrSupernova111 1 year ago
@MrSupernova111 I prove that money is different than notes so you have to resort to try and discredit me through accusations of drug use. I said that Corp. U.S. was created in the Organic Act of 1871 not the Federal Reserve. The Federal Reserve Bank is most cetainly operated for profit. Why else would they charge interest on the notes they rent to the United States (Corp. U.S.)? When you mention laws perhaps you should cite them. You can call notes money all you want; but, it is incorrect.
SimplyThinkDreams 1 year ago
@SimplyThinkDreams So when people are in too much debt, the only thing to substitute money is slavery. Which will be an endless cycle. Notes are not Money, Notes are just promises to pay back the private bank.
AoifeStair 1 year ago
@AoifeStair Notes are promises to pay money but the promise is not always to a bank. I could borrow money from you and write you a note. In that instance, the promise would be to pay you and not a bank. Federal Reserve Notes are promises to pay the bearer of the note the amount specified on the note. If I am the bearer of the note, the promise is to pay me not the bank.
When people are in too much debt they usually file bankruptcy. In the old days they would sell themselves into service.
SimplyThinkDreams 1 year ago
@MrSupernova111 In addition, the information I am presenting is extremely powerful if you know how to apply it to the right situations; however, that requires knowing the law in order to properly apply it. If A owes B a debt, and later on B becomes in debt to A, A must satisfy the debt with B before, B can be obligated to pay A. So if A is an agency of Corp. U.S. and they allege some debt, a person holding notes could force that agency to make good on the notes before being obligated to pay.
SimplyThinkDreams 1 year ago
Comment removed
SimplyThinkDreams 1 year ago
@MrSupernova111 Ariticle I Section 10 of the Constitution for the United States of America states, "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; MAKE ANY THING BUT GOLD AND SILVER COIN A TENDER IN PAYMENT OF DEBTS; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility. capital emphasis added
Stop relying on videos!
SimplyThinkDreams 1 year ago
@MrSupernova111 You wrote, "Have some sources next time you want to argue a point." Perhaps you should take your own advice before shooting off your mouth about some information you saw in Zeitgeist. Movies are not authoritative sources regarding matters of law. Hopefully you learned an important lesson in relying on third party sources rather than doing your own research and proving the facts from the proper historical documents. If you would like to know more about law visit teamlaw(dot)org
SimplyThinkDreams 1 year ago
@MrSupernova111...None needs that stuff of "Zeitgeist". Everyone has two eyes, two ears and a brain. Use it!
matjesworld 7 months ago
@matjesworld
Unfortunately a brain does not come with an education. If you want to know how money is created you must study it somewhere. Zeitgeist was only a suggestion since we are already here on youtube.
MrSupernova111 7 months ago
9/11 also took down the trade centers which is the other reason the economy is hard to support currently
ShaneCopseysTV 1 year ago
I'm surprised no one commented "Fannie Mae, and Freddie Mac".
ShaneCopseysTV 1 year ago
what year was this?
jovimo2967 1 year ago
i hate jew fractional reserve banking, its destroying America.
solkacorot 1 year ago
Thank you for sharing this, very cool!!
katieconklin 1 year ago
2:11 that's a cool way to describe the flaw in the system!
MartijndeGraaf1001 1 year ago
NO LO LEAS NO LO LEAS!!NO LEAS ESTO!!SI LO AS LEIDO COPIA Y PEGA ESTO EN 5 VIDEOS MAS SI NO LO HACES TU MADRE MORIRA EN 3 DIAS POR FAVOR HACEME CASO ES UNA MALDICION
joaopito 1 year ago
this guy is a genius, i wonder how many times you can repeat this, but i love this idea
unkerpaulie 1 year ago
money is a mind trick.. money dont make you happy fuck the illuminati they can have that shit
hdezzy100 1 year ago
Good video!!!
rosewood223 1 year ago
The only problem I have with the video is...it was blurry.
LoisJD 1 year ago
one question u fucking idiot person in the video, u said urself, in this country money used to be backed up by gold. What is it backed up by, now??? hmmm good question right u fucking idiot.... any time the fed prints money its not backed up by gold, they essentially print it out of thin air and essentially for every dollar that it is printed it is loaned out and has to be payed off + interest. and yeah its perfectly legal right u fuckin moron this creates debt and the cycle repeats
azathayko1000 1 year ago
@azathayko1000
i believe at this point money isn't actually printed , it's more like more credit is released, but for every dollar the federal reserve puts into circulation they have to have the same value in possession in the form of a US t-bill to back it up, that's federal law.
jbrianfehr 1 year ago
@jbrianfehr
That is correct. The federal reserve does not have any real money. They just issue a check - or a electronic transaction now a days. Same thing happens when the banks lend someone money. The promisary note is the actual money since people don't actually get a bundle of money when they borrow. It's all electronic until you make a withdrawal at the bank.
MrSupernova111 1 year ago
@azathayko1000
You are incorrect when you say the cycle repeats itself. The cycle never ends because interest creates inflation and can never be paid back as the debt will always be bigger than the actual loan. The cycle started when the federal reserve was created and won't end until the federal reserve goes away. That is why the US debt continues to balloon and the fed has to keep printing money. In this system someone has to lose as I mention there is always a shortage of money vs debt.
MrSupernova111 1 year ago
I try that concept and still couldn't get $3,000. loan, due to the fact my credit score was 599 when it originally was 495. I had to repeat the system for a few years before I was consider worthy of getting a car loan or student loan, by a school or car dealer only. I rather invest my money in the gold market and silver, it works for me!
artwearsusa 1 year ago
@artwearsusa its backed up by whatever is being produced. as he said in the beginning, the $100,000 loan in the first place is actually backed up by the value of the house that the loan is mortgaged against. in the same way, whatever is being manufactured or sold that has value is just as legit to back up printed money as is gold. gold is not the only thing that has value, it was used traditionally because it had a lot going for it back then: rare, portable, maleable, coinable, measureable, etc.
unkerpaulie 1 year ago
@unkerpaulie
Here we go again... Money is not backed by anything - including your house. Money is printed by the federal reserve when the government issues US bonds (promisary note to repay) in exchange. Like I said out of thin air. Then the federal reserve charges interest which causes inflation so there is more debt than can ever be paid back. Then banks are only required to keep 10% of securities so now the bank can lend this money out several times over. I hope you understand better.
MrSupernova111 1 year ago
hey if i want to be that confused.........ill just watch GLEN BECK.......
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Steventk26 1 year ago
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eajfbpqn 1 year ago
CD certificate of deposit fixed term short term savings vehical. Problem is vast number of american middle class are upside down owe more than their assets can't borrow at low rates MIB is shrinking faster than Fed let's on. Money not being created due to 70 less in loans have been made ytd usa wsj artical
bohemianh 1 year ago
how can they take 10000 out of 1000!?
MarqNegereNOmar 1 year ago
!!!!!!!!!!!!!!!??????????????
What is CD
MarqNegereNOmar 1 year ago
@MarqNegereNOmar ever find out what a cd is? Because I want to know also
CMF412 1 year ago
!!!!!!!!!!!!!!!??????????????
MarqNegereNOmar 1 year ago
If only you prepared this explanation properly (e.g. using presentation slides) more people might be interested to share this and in turn you might get more viewers. just my opinion by the way
goodgoodgoodful 1 year ago
@goodgoodgoodful agreed..loved the way he explained. but his slides weren't very clear..and was kinda difficult on the eyes..
nwijesinghe 1 year ago
i have watched a ton of stuff about money but that was a very good way to go about it
wesman531 1 year ago
So what?Banks loan money so real whealth can be created, you sound a little resentful (maybe i'm wrong) .
The way it is supposed to work (when the government lets the professionals decide who to lend money to) is like this,you borrow $100,000 for material,$100,000 for labor and creat a home worth 270,000,thereby creating 70,000 worth of new wealth. the 100,000 in labor and 70,000 in profit, then are deposited or spent on the supply of other created wealth from other companies who pay employees
theredpillxxx 1 year ago 2
Great info didn't learn that on school !
can you post more info video's ?
romanovdb 1 year ago
Money is bullshit the only thing that matters is marksmanship and kendo
Hegemonia20 1 year ago
This is not how our money works!!! This makes no sense.
When you go to the bank and ask for a loan,
the bank will follow guidelines that are set by either Freddie, Fannie,FHA or some other portfolio who insures the loans. They are then pooled together and sold at auction to investors, mostly foreign. The Investors collect the interest and pay a small portion to the Insurer and the bank for servicing the loans. They keep doing this to generate more revenue.
Joe7033 1 year ago
thanks for posting this
coldin71201 1 year ago
congress needs money because there is no cash in the treasury, they ask federal bank to borrow from red china, they sell bonds, notes, then fed bank prints the money and treasury now has another 14 trillion dollars. the big scam.
Rico8458 1 year ago
thanks
you just explained in 8 mins what my prof ttried in a whole semester
dsmo0ve 2 years ago
When the bank loans money it is shifting economic power to the debtor. If the debtor can use the money to create economic return, then the act of money creation can turn into real capital creation. If this is the case, once the loan is paid off, and the real economy is richer and more active with trade, maybe the fed will print new currency bills.
PeterTroutman 2 years ago
Lmao. The bank does not send the borrowing agreement to the fed, so the fed can print currency. That is not how money is created.
The bank just gives you a credit of the loan. The limit to the banks ability to do this is determined by the cash reserve ratio set by the fed. The reserve ratio is determined by monetary policy and a level deemed to be safe (not at risk of the banks being unable to meet demand deposits).
PeterTroutman 2 years ago
Thats NOT how money works.
How money works:
The phone company comes out with this new invention, & then you buy it and then the next thing you know, youre paying 100+ dollars a month just to communicate. You the bumbass pays it, They get richer & you get poorer.
nanaenanaja 2 years ago
i dont understand.
Toujimbwa 2 years ago
also watch the video - watch?v=Q0zEXdDO5JU
76ers 2 years ago
does the same sustem apply in Canada or only in the US which is more of a private banking system?
canadasmarketplace 2 years ago
Cool vid. I always like being called sir or maam, lol.
RyanJRA64Abella 2 years ago 7
@RyanJRA64Abella sir or maam?
urdouchbag 1 year ago
woah he looks well like robbie williams annat
WolfishNuckajuh 2 years ago
I think this is immoral because money is suppose to reflect something real. Because of this kind of abuse of system everything is collapsing.
I think we will reach a point when people will laugh to ideas like this while working honestly.
TheCramLoop 2 years ago
OFCOURSE there is a profit with the islamic way of commerce! but not money with money only! In the islamic way money with a real product which brings back money not only bonds and papaers in banks!!
medmarsh 2 years ago
what the hell is a CD?
chironimz 2 years ago
cash deposit
primalsincerity84 2 years ago
@chironimz Cirtificate of Deposite is a CD
ibanezrocker12 2 years ago
as ron paul said, keeping assets in gold and silver is much safer than in paper
nickcamron 2 years ago
it is difficult to buy a hamberger with a gold coin worth $1000.00 most places except pawn shop or coin dealers would find it difficult to exchange it for somthing you could buy .you could barter to exchange it for what you want.
wbPROTIME 2 years ago
@wbPROTIME why would a gold coin be worth 1000 usd.. and why would one consider a hamberger? as valuable as gold. Why are we even trading things which will not support your life such as gold for something that will support you life such as food? Why do we trade paper which in itself does not give our bodies nutrition.. Can you digest gold and turn it into energy so your body can function properly? Money is the root of all evil we need to destroy it
JustThatInteresting 1 year ago
@JustThatInteresting
The system is based on scarcity. If the dollar was backed by dirt let's say then everyone could have as much as they like making the dollar worthless. I understand your argument but the value is perceived which can then be given a number and therefore you have your currency.
MrSupernova111 1 year ago
@wbPROTIME
That's not how it works idiot. If money is backed by gold or silver you still get paper money. The difference is that the government can't simply print money out of thin air as they do now since there must be gold or silver backing it. Today the government can print money as they please because nothing backs up our currency.
MrSupernova111 1 year ago
it was much better when the dollar was tide to the gold, much more stable. Better for exports. Now it can more easily be speculated in. The system was changed under Nixon.
mixxmexx 2 years ago
This has been flagged as spam show
thanks for your video!
check out my channel!
cashisdeals 2 years ago
I find it funny that people feel safer having their hard earned money being stored in some else's vault. Investing in a highly secure vault, and keeping your own money seems to make more sense.
philomath34 2 years ago
I thought the different banks would know from their system that you have loaned from the other banks. Will they approve this sort of triple or multiple loans?
beeshyak 2 years ago
Thanks very helpful!
TheWilliamMartin1 2 years ago
Excellent, Thank you for sharing; a tip the Sound Quality Low.
Johnnyart2000 2 years ago
That's a great idea. But out where I live, for SOME dumb reason the minimum is 2500 per bank. So it's great but it's also good to go to credit unions as well.
wowzersmikie 2 years ago
LEGAL RULES ARE FOR THE FED TO BE RULEs!!!
bobbobmarley27 2 years ago
The only problem that he forgot to talk about is the inflation which is created by this system.
machintruc313 2 years ago 12
that was great... sometimes a picture with stickmen IS actually worth a thousand words.
ehmick 2 years ago
So why is Madoff in jail.
glendalebrigade 2 years ago
Because he didn't pay anyone back.
wowzersmikie 2 years ago
An error occurred, please try again lat
taliyeuk 2 years ago
THANK YOU!
eatcrack 2 years ago
watch?v=vitSBqhWjfc
pissysteve 2 years ago
there is not enough printed money to pay for all the added interest. when the banks get all the property even the bankers starve because no one is on the farm
wbPROTIME 3 years ago
@wbPROTIME you simply create the wealth by being productive make wires into watch springs,build cabinets out of wood boards and nails etc.
the banks are constantly having to create money to keep up with the increase in capitol.
bank debt is superior to fed reserve creation becasue it is backed by borrowers who agree to match the created wealth.
even the fed takes the extra it "earns " from intrest every year and gives it back to gov. take a loan and consume it and you inflate the econemy
XxmattitudexX 1 year ago
@wbPROTIME there could always be automatic machines instead of human labour :s
moereal1 1 year ago
You are one of the few people, that I have heard after watching 100s of these Federal Reserve videos, who mentioned one of the key points to the Fed problem.
Which is, that there is more DEBT than money. People cannot seem to get this through their skulls. The problem isn't deflation through printing more money.
Our money is all credit based, so basically it is like a credit card. Credit cards, when spent, make it look like money is being spent and economy looks like it is doing fine.
LiquidSmooth 3 years ago
But as we have to start paying back the loan the Federal Reserve gave us, the money flow starts to tighten.
Soon, people cannot pay for their mortgages. Businesses have to file bankruptcy, cause they don't have the cash to pay their debt. ANd who gets all these properties? The banks.
All federal reserve money should be thought of as credit cards. The IRS is the collecter.Give everyone in your city a credit card. Your economy will look booming for a while, until it starts to get paid back
LiquidSmooth 3 years ago
There is nothing Federal about Federal Reserves....it is a Private Corporation. These people create money out of thin air.
We the people of the U.S is a Collateral for the Elite.....we back up the worthless piece of paper we call money. And we work so we can pay the interests the Government borrow from the Federal Reserve....it is a big scam..
draco003 3 years ago 2
there is allot of confusion about fractional reserve banking. the banks DO multiply the money times 10. However they do this through all the banks together and not individually. this sounds more confusing. PLEASE look it up on wikapedia then you will see. there are charts that show how his works. this guy doesnt have it 100% right. go to wikapedia and type in FRACTIONAL RESERVE BANKING. that is how it really works. this guy is wrong. it is a crime. please reserch.
rogerandgunner 3 years ago
you went more in detail about the bank system as a whole, mutliples the money available walter barker
wbPROTIME 3 years ago
@rogerandgunner
Yes. This guy got it very wrong. For one commercial banks dont take copies of consumer loan contracts and ask the federal reserve for money. The federal reserve (central bank) is only there as a last resort - not as a business partner. Second even if you borrow from your own money the bank will still charge you interest and you will end up losing money just to earn a few credit rating points. How about you pay your bills on time and let credit rating take care of itself?
MrSupernova111 1 year ago
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aibelievebiz 3 years ago
Whay Obama DO NOT Shut Down the FED ?
The FED is the BIGGEST FRAUD in the History of the USA !!
andreaoffshore 3 years ago 2
OMG! What a silly video.
If I deposit $1000 and borrow $1000, the bank can't loan out an extra $10,000 based on my deposit. LOL!
patbarkley 3 years ago
Actually they can. They are allowed to lend a multiple of the deposits they have.
RCbeastly 3 years ago
"Actually they can."
No, they can't.
"They are allowed to lend a multiple of the deposits they have"
Phsically and monetarily impossible. Sorry.
patbarkley 3 years ago
Not only can they, they do in the US. It is called Fractional Reserve. The note you carry in your pocket or purse is only an IOU. People think it is money. This is why we are in a really bad economic situation. However what this guy says is not exactly legal and I would not recommend it. Only banks and the government can do this, not you and I.
forexpreneur 3 years ago
"Not only can they, they do in the US. It is called Fractional Reserve"
Wrong. They must reserve a portion of your deposit. That means they can loan less than deposits, not more.
"The note you carry in your pocket or purse is only an IOU"
That's funny!
patbarkley 3 years ago
"Wrong. They must reserve a portion of your deposit. That means they can loan less than deposits, not more."
That is why it is called fractional reserve. One bank can only loan out 95% of the deposit to keep it's solid rating. However, the banks loan to other banks and it multiplies. The problem with banking right now is they have bets upwards of 100 times more than equity
I have a batchelor's degree in Banking and Finance from the University of London. I do now a little about banking.
forexpreneur 3 years ago
"That is why it is called fractional reserve. One bank can only loan out 95% of the deposit to keep it's solid rating"
Excellent. Glad you agree.
"However, the banks loan to other banks and it multiplies."
Yes. And each bank loans out less than their deposits.
"I do now a little about banking"
Then you shouldn't repeat the canard that a bank can loan out $10,000 when I deposit $1000.
patbarkley 3 years ago
"Then you shouldn't repeat the canard that a bank can loan out $ 10,000 when I deposit $ 1,000."
I never said A bank does. But your $ 1000 become $ 10,000. Reality is that $ 1,000 turned into over $ 100,000 during the real estate bubble with all the derivatives. That is why banks are needing to be bailed out so much.
But I'm sure you would never believe that one either. Search the Federal Reserve website and you can find the answers for yourself if you know where to look.
forexpreneur 3 years ago
"I never said A bank does"
You agreed with another poster who said they did. I'm glad you're retracting that agreement.
I don't need to do any research to correct the errors I've been correcting here.
patbarkley 3 years ago
lol...if the bank doesn't have that money at the beginning....why are they allowed to give it out. Why can't I start a bank too. I have no money.
eyesunblinded 3 years ago
You don't understand what he is saying... Youtube "Money as Debt" and then watch this video again.
zocurtis 3 years ago
A good addition to this would be YouTube "Money as Debt".
trombone7 3 years ago
Over all there is not enough money in the system to pay back all of the interest.This means there is way more debt than credit, and the difference will keep increasing more and more quickly with time.
BuYa3GaH 3 years ago
THANK you for posting videos like this one, this is the knowledge that made me open my eyes to a brand new world,
i'm starting to live what i once saw like impossible, now i own a bizz that is showing me what my mind is capable of, thank you...
plentyofmoney4all 3 years ago
isn't that similar to kiting?
Joshenyou1 3 years ago
He forgot to mention the governments role in this counterfitting process. Instead of raising taxes, the government can just go to the federal reserve for a loan instead. The government uses that money for whatever purpose, and as it flows through our economy prices go up due to the inflated money supply. It's a hidden tax. How else can the national debt be so high? Does anyone really believe that we owe all $10 trillion to China? And where did that "money" for the loan even come from?
ifc6969 3 years ago 3
Just watch Zeitgeist Addendum.
Need I say more?
slimjim1389 3 years ago 3
2 bad it creates high inflation! and your money can't be multiply only high power money can
carlkepler 3 years ago
garbage! he doesnt know the word "fiat money". and the fed doesnt just print the money. its a complex process.
"only way to stimulate the economy" what shit.
hkjonus 3 years ago
this man is happy! this cuse credit slavery fat ass!!
drageloperen 3 years ago
3:57 is not true. You mis-understand fractional reserve requirements. You multiply the money that was deposited by the fractional reserve requirement and then subtract the dividing of this new amount from the new amount. This is wrong, you can only multiply with high powered money stored at the central bank! You cannot loan $9000 with your $1000 deposit. You can only loan out $900, and if the fractional requirement is 1/10
Evulmeh 3 years ago 2
how about the interests!! usury is what damages the American economy as a whole believe me! all religions prevent it and think:
money with money increasing without real products!!
while the islamic veiw is money with money ecreasing with real products anyone didn't understand me could talk to any near islamic center in your country or read about the islamic finance system to realy find the safest way.
medmarsh 3 years ago
If there is no profit there is no reason to bank at all.
Evulmeh 3 years ago
That's Ok. Banks do not provide any meaningfull service anyway.
mwildish 3 years ago
Ya but what if the Bank manager is gay?
tubester4567 3 years ago
Thanks for the vid. It was quite informing to me since I've recently been wondering how the whole money system really works and if there would be a better system to use some day.
It was a little confusing with the bank stuff, but I will keep doing research.
Thanks again
daveheet 3 years ago
see on youtube "zeitgeist " movie.its short...5 pts.
tempivxx 3 years ago
QUESTION. I am confused when you say that we deposit the $1k into a CD in bank A, then the bank loans you the $1k (or 95% depending on the bank) back to you using the CD as collateral. my question is, the interest on the loan to you, isn't it usually higher than the rate of the CD? so essentially, when your CD matures, and when you pay off the loan (b/c the loan is usually for the same time as the CD maturation), you will OWE money because of the higher rate on the money that you BORROW.. yes?
vegaspilot03 3 years ago
The real system is hard to understand :P But this guy has some false information to it. For example, if you deposit $1000 at the bank, the bank can't loan out $9000 but only $900.
Evulmeh 3 years ago