Debt as money has it's pros and cons; it's not all bad. A pro is its capacity to grow dynamically where there is a demand; a consequence of this is the necessity of periodic collapse. One must take the good with the bad, only economists believe exponential growth can last forever.
The only reason there are billionaires and trillionaires is this "Counterfeit" Currency. Tell me, what have service? or what products have these people offered to be able to afford 80 million dollar yachts? Read the book " The Millionaire" !
@Dreambro1 ALSO, if we allow these big money people to keep soaking in all the money, and it just sat in a bank and not be able to Circulate (esp if we stayed on the gold standard) there wouldnt be enough to go around! Anyone knows that their money, when they deposit it, (and that includes the billionaires and the trillinaires) that it is being used by the bank. If it wasnt, there would still be a need to make more money. The danger would be if everyone tried to withdraw at once!
Nice video. But it would be more effective and more catchy if you add some photos for some proof. but nevertheless, you have a nice and great information. looking forward to hear another news and advices from you soon.
You missing one important point. Interest on loan. When interest is paid back to the bank, money destroyed. Loaned out- created, interest paid back- destroyed. Control of the currency in circulation is the name of the game. They don't need to steal money, they own money. If you can only inflate money supply, then you out of control. Think about it.
Rothshilds 1912: "The few who could understand the system(Central bank)will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests."
I love u man. I tell as many people that will listen and they don't say it or act like it. But I can tell by the look on their faces that they think I'm a crackpot. I was talking to a girl that works in the payroll dept @ my job....PAYROLL for crying out loud. She has no clue about the banking system. I told her that the Federal Reserve has more power than the government, is not a government entity and that they are a private institution. She looked @ me like I completely lost my mind.
The Rothschilds are enslaving the People of the US via the fraudulent criminal conspiracy known as the illegal, unConstitutional Federal Reserve. The entire US government is now simply a puppet of the Rothschild banking dynasty.
“End the Fed”
Every political candidate must be evaluated based upon this single all telling crucial issue. You are either with the People or you are with the Rothschilds and their agents, the international bankers.
If you want to encourage the collapse exchange your paper currency into Nickels and Pennies, these are worth more than the face value due to the materials.
i dont understand, isnt that what banks do they take your money at any level and then loan it out isnt that almost the whole way they make money? and how does this put us at a lose because the money is inflated. by central banking counterfieting, the cost of everything now is pretty low and stable houses food gas etc. i dont understand inflation or how it effects me? it get that inflation happens when they make money without a standard but thats not the whole story?
I don't hold it a fraud—on both sides, it's simple betting. Except in the colloquialisms of common parlance, something is not a fraud until it is adjudged a fraud—same with crime, . . .
I have a somewhat less educated question I just can't understand...please bear w/ me lol. I don't get why inflation is bad. The dollar not being worth as much just means you need more total dollars to equal the original value, but if theres more total dollars in the economy, how is this bad? the money is just paper, what would be the difference between the paper saying "1" that can buy me a coke vs. "100" if it can still buy me a coke? I'm sure my thoughts are flawed, but i just dont get it
The thing is the money you saved doesn't increase, so you lose buying power. Let's go with your example and say you saved 100$, so you could have bought 100 cokes. Then you have inflation and suddenly you can only buy a single coke with your saved money. You were robbed 99 cokes. If you have a fixed salary and it's not increased or adjusted for inflation you lose too.
3:55 - 4:05 argument Inconsistent! If inflation robs the value of savings, it equally well softens the value of debt (assuming nominal interest rate is held fixed)
@nightvid08 I agree, it robs (discourages) savings and softens (encourages) debt - eventually creating a nation of debtors (indentured servants) as I said in the video. I don't see the inconsistency.
Plenty of people have this "idea" though it's still vastly less prolific than running along with the scam, it's imo simply a matter of opening your eyes.
What's the point? How is this logical? Why would banks want to get allot of money if they are the ones that devalue it at the same time? What fortune? Why does inflation benefit the banks? What happens next? The system will collapse under itself? That does not sound like a sound or logical system.
@DirectQuestion LOL. you are thinking as a average person chasing dollars. MONEY = ENERGY. Money by itself is worthless but it is a store of the efforts of our work. We are slaves and we don't even know it.
Inflation is just a way to take that energy (indirectly) so most people don't even know or think of it as being taken.
They print money and spend it at pre-inflation value. We lose the amount of value they gained.
@DirectQuestion That is true, but there are ways to prolong it before it collapses. Such as inflating slowly over time or keeping the excess money out of circulation.
The other thing the U.S. has is historical confidence in the U.S. economy and status as the world reserve currency. That's why even with printing trillions of excess dollars the dollar hasn't became worthless.... yet.
@DirectQuestion Your right it is a bad idea, but the bankers/elite don't care and government is too stupid to think that far ahead (either that or they are doing it on purpose).
All government sees is that they can pay for infinite wars, infinite government programs, etc... "for free" all without collecting taxes. It is great for them.
@okvideos5 Maybe they are not so stupid. I have heard (but haven't yet researched) that America is planning on having a new currency, The Amero. It would also combine Mexico and Canada with the same currency. Maybe that was there plan all along?
Yes the CURRENCY will collapse. But the puppet-masters of the Federal Reserve will simply move on to another country to bleed, while the USA recovers and regains its footing (in a few or several decades).
Thank you for your excellent videos. You have a good understanding of things and are good at explaining matters that are sometimes hard to grap. I do appreciate.
Absolutely there are enough PM's to provide for our economy and every other economy on Earth too...the way it works is the price of gold and silver (G/S) goes up to about $10k/$1k respectively for G/S and the dollar goes away period.
Yes, there are enough pms to back our economy and dollar. Simply revalue the amount of gold to the amount of dollars in circulation. Perhaps you have an issue with gold being worth $10,000 or so per ounce.
As for the American public, the reality that Obama is not up to the job seems to finally be setting-in; the poll numbers are now headed steadily south- is he already facing his Waterloo on this legislation?
Barack Obama will never say to your face what he actually plans to do. Everything's rolled-out in a Trojan horse. Theyll be no private insurance industry left after five years. Why should we give Government medical insurance to 15 million illegals?
Good video. Only thing I would add, and you started to ask the question: Why would Govt allow this system to continue?
Because they benefit too. Govt spends too much and needs to finance its budget deficits. Taxes make Govt theft too obvious, so borrowing and inflation (increasing the money supply) are easier.
I don't think banks have taken over Govt. Banks have no army, police, or law creating power. But Govt has been enticed and is now addicted because of its spending and regulating habits.
Actually, the banks have all three things that you mentioned that they might not have. The reason they have these is because banks pay for them to exist. The military, police, all state services are payed for by deficit spending. There is no way to be a debtor without a creditor. Take a wild guess who the creditors are.
Fraud requires deceit. Almost everyone understands banking, hence no fraud. It's just poor mon pol by the fed, no big sinister mystery. Were it tight and not recklessly loose, the banking sector would have allocated more effectively due to less money for coke parties (been to a couple.... they will be missed) among other things. You need to understand that under responsible MP our banking system works fine as a whole. We've just been greenspanned. This too will pass.
I think you give much too much credit to the average person in assuming they understand banking. They understand how a savings and checking account works, but that is the extent of their understanding.
thats odd, becuse the first time i found out about how the banking system worked i felt like i have been decived. and so does everyone else that wakes up to it. Hennry Ford stated "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." But remeber, EVERYONE UNDERSTANDS how it works. your a blinded fool.
I think nothing has any true value. Everything can be taken away with the stroke of a pen. One policy change and you will be forced to give up what you own. Only time will tell. Hopefully one day the majority of the world will wake up to what's happening and do something about it.
Hopefully more intelligent people will drop the blinding two party loyalties and rediscover their own powers stated and intentionally protected by the US Constitution.
The whole banking scam business is well explained in documentaries like: - MONEY AS DEBT: YouTube, Part 1/5: watch?v=vVkFb26u9g8 ___ - THE MONEY MASTERS: YouTube, part 1/22: watch?v=QlIhhYGujoQ ___ There is a long text which explanis basically the cause of what is happening in the world: w w w . iamthewitness . com/ DarylBradfordSmith_Rothschild .htm
when you realise these banks are allowed to create money from thin air, without putting in anything of their own, and collect interest on it , it becomes clear that the whole thing is a privately run pyramid scheme, im British, but if your American take out a note, and look at it see the pyramid with the bankers at the top? the government is just below this.
You can fool some of the people all of the time, all of the people some of the time - banking is an attempt to fool all of the people all of the time. Anyone who is suprised at the mess we are in now has been fooling themselfs.
they loans they give dont even come from existing money, they create it from thin air, and then charge interest on it, this increases the money in the system, reducing the value of the currency, so you need more money to pay for things because the money is now worth less, this is inflation.
The politically connected buddies who are the first to get the fiat money purchase real assets while the effects of inflation take longer to reverberate throughout the economy. This is the stealth evil of inflation.
The prices of technology are deflating. As more of the economy becomes tied to information technology it will have deflationary pressure put on it. For example, a computer that you can buy today will cost half as much and be twice as powerful as a computer that you would purchase two years ago.
We will see if the central banking cartel will inflate at a velocity greater than this technology related deflationary pressure.
I think I know what's going on. Governments hate deflation because it makes their outstanding debt obligations increase in real value. Stimulus packages are a deliberate attempt to create enough inflation to counter deflationary forces. Unfortunately they take a long time to work. In the meantime, people are still worried about losing their jobs (if they haven't already), so they continue to rein in their spending and support continued deflation.
Well, I showed my friends this video. I was enthusiastic and hopeful... but it didn't work. In fact, it sparked a pretty nasty argument. I think I'm alienating my friends because I can't be quiet about what's going on right now, or at least my perception of such. They had many counters for the video content itself, most of which aren't important. In any case, they won't consider what seems to me to be evidence, or entertain any opinion other than the one they've already decided on.
the problem is that honest competent people such as lorax are not in charge. the con-men are in charge. so although it is nice to have lorax explain how we all are being screwed, it has no effect. all we can do is wait for the collapse and start all over again.
A lot of good points. However, FDR made gold illegal to own when the currency was created. It was necessary to remove gold to enable circulation of the new currency. The solution to declining US manufacturing is to only buy US made items, not Chinese. Though that won't happen because we have capitalism, and lowest price wins, regardless of long-term harm to our own economy.
The best solution I know, in times zero true GDP growth, is to transition out of currency onto something, like precious metal, which can't be counterfeited by others. In some instances, esp during GDP growth, another strategy would be to invest in business.
most suggestions that I am aware of involve going back to a gold standard for the dollar or allowing private currencies that are backed by gold. You don't get rid of money, you just make the money have intrinsic value.
@1Jinxed1 Im hording silver but I doubt seriously that it will be worth something when the collapse hit...But I guess I rather have it than not have it.
@1Jinxed1 forget about gold or silver,,, those can be just as inflated as cash! Gold , silver, cash, Cattle, sheep, People. what does it all matter? trade is trade. Nowadays people are Bartaring ( if i spelled that right) to get needed services or items. You mow my yard, i wash ur windows type thing!
The federal reserve invests in long term treasures this seems a perpetration against the middle class.,The feds are also backing precious metals.What stats, investing diversity is one thing strategy skill set experience think about the long term one key is timing a recommendation is the film "The Money Lenders" added explanation consider the underlying economic factors in uncertain economic times glad I subscribed..
Another excellent video. It's amazing to me that so many people still see investing in precious metals or other hard assets as crazy or unsafe even after the massive bubbles and bursts that people have experienced over the past 15 years.
"'start transferring your paper currency into something that actually retains value'.
what would an example of this be?"
He means a gold system, possibly even a coin system.
Earlier people would trade based on metals. You would weigh the metal (usually silver/gold) and that would determine your currency's value.
In this way you couldn't really "counterfeit" (baring chipping coins or watering down the metal) money, because if you made a 1 ounce gold coin it would be 1 ounces of gold.
god is everyone who watched this video missing the point, the central bank can actually create money that doesnt exist, hence creating inflation... so before you come on here with your college loldegree in finanace, get off the man's dick and watch the video again kids.
"the central bank can actually create money that doesnt exist, hence creating inflation"
If inflation increases slower than GDP, we come out ahead.
If you made $10 without barrowing but could make $1000 with barrowing (and paid $100 in interest and lost $100 due to inflation) you would still come out ahead (by $790 in this case, or +7900%).
That is like saying, if I make $1000 and someone only steals $100 "I come out ahead". Sure, you still have more money but that doesn't negate the fact you were robbed. With an increasing GDP and a fixed money supply, everyone's $ would be more valuable every year. Yes, banks can inflate the $ supply, pay a fraction as interest, and you still come out "ahead" as long as GDP rises more than inflation. However, you would have gained more if there were no inflation of $ supply - even w/o interest.
That is only if you believe inflation is theft (or interest payments).
If you don't understand economic activity you might think paying for things you bought is theft (you had $10, but when you picked up food at the store you only had $5; that other $5 must have been stolen from you, since there is no way that you could actually trade one thing for another).
and the banks funded communism and socialism to keep the people in serfdom, i get it you don't need a phd to get that, but perhaps a doctor could help you out, DR. RON PAUL.
Calling (our) banks "capitalist" is not correct - they are a cartel granted special privileges through govt influence peddling. They are far from the principles of free market capitalism. Economists can't deny this no matter how they dance around it.
This video tries to point out that the bankers "scammed" you by lending your money out, but only the very naive would believe it is fraud.
When you go to a bank they often have a building, a parking lot and employees. They sometimes have a vault and security personnel.
If you don't understand that those assets were paid for with money the bank made (through banking) then you've missed the entire point of the banking business.
ok but two points: intentional bad loans and of course it would collapse the fed is what makes the economy now and they have us by the balls with their fiat currency and fake economy whick is a bad thing
What this video is talking about is any loans, not bad loans.
Good house loans increase our nation's wealth; bad house loans decrease our nation's wealth.
lorax2013 fails to distinguish between the two.
"fake economy whick is a bad thing"
If you can use that fake economy to feed people and to have people work for you, why is it bad? Would you rather we all work as hard as sweat shop laborers for the same pay?
Please explain your theory on how leveraged investing by banks increases inflation. The Fed pumping new money into the system increases inflation, not the average bank's lending practices. If they have 100 million deposited by customers, and they invest 95 million while keeping 5 mil on hand to pay off depositors, there was no increase in the money supply and no inflation increase. Explain how it is.
It's not fraud, it's what banks always have done, the theory being the depositors will never all withdraw their money at the same time or most of them at the same time. I do think they should increase the reserve requirements, but it would only work if foreign banks did too, otherwise foreign banks would be at a big advantage and beat our banks on profits. Leverage doesn't create inflation.
And that's not even going NEAR the lack of understanding of any sort of credit intermediation.
Basically, you have people like this Lorax, who feels himself to be an expert, trying to teach others? And their own understanding is EXTREMELY limited, or just flat out false.
Airelon is right. This yet another person with no real understanding of economics who is oversimplifying things to the point of being wrong. There are too many errors and disingenuous statements here to even mention. Here's a thought: How much do you pay for your checking/ATM account? Mine is free. Why? Because banks profit from investing, not services. If it wasn't this way, you'd be paying through the nose for the convenience of checks/ATM transactions.
I've been doing that for about 300 videos, and 400 + blog entries. I let my own work and accurate track record speak for itself when it comes to economics.
Kind of hard to understand it if you don't have a background in economics/accounting I guess.
Basically it means Guy "A" gives Guy "B" a paper with signed money as a lend. Then "B" buys something with that paper from "C". "C" guy doesn't get his money as cash he gets it as a signed note. "C" guy buys something else from "D"! and so on, with the same exact "bank note" signed by the first guy, the lender.
is it possible they are deliberately trying to collapse the dollar to convince us we need a world bank? If so, how would this transition work? and why would the rest of the world follow?
This fella, Ron Paul, Jim Rogers, and Peter Schiff have warned us what the Federal Government is doing and how it will end. Our Government I believe wants to collapse the economy they have something coming for us, will it be the Amero currency or the microchipping us? We will end up as slaves in their One World Government.
Listening to you is like when I had a crush on my science teacher in highschool... I have to listen and learn because you are so intellectually sexy :)
Next step: Let the catastrophe to its full extent and ... let popular pressure ask for a solution ... "This time it's different!" ... TADA ... Enter the Amero + Clean Slave ... woops ;0) ... Clean Slate of past debt.
Your explanation was enlightening, I just wish more Greeks were interested on the topics you are talking about, considering that our economy is almost at a "RIP" state.
So, the real solution is to become a bank... sorta like how Chase bank has grown so much, or on a smaller scale but more widespread, credit unions, and also, corporations with their IPOs (the latter not really frantional reserve, but they can "swell" money if managed properly).
Do a vid about how we can make our own banks, or something like that.
I was thinking to make a comedy video about how to open your own bank - with a real life call to the Fed asking which form I fill out so I can get their currently near zero interest money. In reality, red tape is a very effective tool for controlling people and I'm sure this is what you will encounter if you ask for the same rights given to the banking cartel. Anyone is willing to try and video tape their attempt - it would be funny to see I imagine.
I don't fully understand these economic systems, honestly, but I do understand that most economists can't fully understand them either if they think it is a well-balanced system.
I did watch a video that talked about how a well-balanced script (fiat money) was used to actually stabilize and economy; it was effectively backed by labour rather than precious metals, because it was regulated by a local government by public sector salaries and taxes.
You would have to have a HONEST and unchanging measure of GDP to use such a system. Government spending would have to be excluded and true balanced budgets required.The self regulalating aspects would also lag somewhat, but it would be better than what we have now.
In an interesting coincidence, arstechnica is now running a stroy about how the Swedish-based Entorpia online just got granted a banking liscence... but i'm not sure if that means they can use frb or not.
In any case, it seems the way forwards is to first make an online game which is operates at a profit.
The federal reserve has an updated press release on site and a publication on monetary policy for those whom are interested more info to consider.lorax is on it. with exceptional insight.
Central banks are fine AS LONG AS they are owned by the government, as in the case of Canada, England, France. In the US the central bank is a private cartel.
Fractional reserve banking is also fine AS LONG AS interest rates are set by the free market, and there is a sufficient reserve requirement.
I disagree that fractional reserve banking is anything but fraud. Promising to "hold" a deposit and then lending it out is fraud. That is why you need a Central Bank - to help cover up the fraud by constantly inflating away bank losses and shifting that burden to the public.
Well i could just as easily argue that capatilism is exploitive of ones labor with or without a central bank. It was my understanding that a central bank existed because when a economy becomes massive you need a buffer during downturns in the economy to prevent constant collapses. I also think the notion of a free market is silly , its like saying a dry ocean.
mitchrix31, a free market, is simply an environment in which people are FREE to exchange goods and services for other goods and services they'd rather have. If you think "free market" is an oxymoron, you might consider the contradiction in "effective central planning." It's awful difficult to manage the lives of 300 million Americans. And it's awful difficult for anyone with that kind of power to NOT abuse it.
You have a good point truth, i just think that when 2% of the population owns 50 % of the wealth, a free market is allowing them to exploit us even more. I mean with this horrible system at least we potentially have a say.
It seems like the human condition requires the acqusition of the "material status" and icons of status. The big problem is the iniquity of wealth and the means used to maintain the iniquity. The rich people will want to bond with their own rich class and will not care what happens to anyone else. The ability to lock people up or send them to war is not a "superpower", but the power of "superstank", because the stank of this is strong. Let's everyone grow energy on hydroponic algae farms.
Ron Paul 2012
tickingawaytoo 3 weeks ago
Debt as money has it's pros and cons; it's not all bad. A pro is its capacity to grow dynamically where there is a demand; a consequence of this is the necessity of periodic collapse. One must take the good with the bad, only economists believe exponential growth can last forever.
cornellius01 1 month ago
The only reason there are billionaires and trillionaires is this "Counterfeit" Currency. Tell me, what have service? or what products have these people offered to be able to afford 80 million dollar yachts? Read the book " The Millionaire" !
Dreambro1 4 months ago
@Dreambro1 ALSO, if we allow these big money people to keep soaking in all the money, and it just sat in a bank and not be able to Circulate (esp if we stayed on the gold standard) there wouldnt be enough to go around! Anyone knows that their money, when they deposit it, (and that includes the billionaires and the trillinaires) that it is being used by the bank. If it wasnt, there would still be a need to make more money. The danger would be if everyone tried to withdraw at once!
Dreambro1 4 months ago
Nice video. But it would be more effective and more catchy if you add some photos for some proof. but nevertheless, you have a nice and great information. looking forward to hear another news and advices from you soon.
chanceryford 6 months ago
You missing one important point. Interest on loan. When interest is paid back to the bank, money destroyed. Loaned out- created, interest paid back- destroyed. Control of the currency in circulation is the name of the game. They don't need to steal money, they own money. If you can only inflate money supply, then you out of control. Think about it.
starseed1977 7 months ago
great video.
if you had some pictures breaking it down would help
21scuderia 7 months ago
Rothshilds 1912: "The few who could understand the system(Central bank)will either be so interested in its profits, or so dependent on its favours, that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests."
genesistwoeighteen 9 months ago
This has been flagged as spam show
One easy Proposal= IF IT IS NOT PRODUCED IN THE U.S.A.- IT SHOULD NOT BE SOLD IN THE U.S.A.
Eadhmonn 9 months ago
One easy Proposal= IF IT IS NOT PRODUCED IN THE U.SA.- IT SHOULD NOT BE SOLD IN THE U.SA.
Eadhmonn 9 months ago
@Eadhmonn OH THATS BRILLiANT YOU FUCKING DUMBASS , FREE TRADE ENCOURAGES COMPETITION
rajkeshnajahnde 4 months ago
@0jussme0
Exactly what i was thinking aswell!
Great video but no solution.
1Jinxed1 10 months ago
I love u man. I tell as many people that will listen and they don't say it or act like it. But I can tell by the look on their faces that they think I'm a crackpot. I was talking to a girl that works in the payroll dept @ my job....PAYROLL for crying out loud. She has no clue about the banking system. I told her that the Federal Reserve has more power than the government, is not a government entity and that they are a private institution. She looked @ me like I completely lost my mind.
sonofsam717 10 months ago
Great video!
I hope lots of people see it!
freesk8 11 months ago
This has been flagged as spam show
The Rothschilds are enslaving the People of the US via the fraudulent criminal conspiracy known as the illegal, unConstitutional Federal Reserve. The entire US government is now simply a puppet of the Rothschild banking dynasty.
“End the Fed”
Every political candidate must be evaluated based upon this single all telling crucial issue. You are either with the People or you are with the Rothschilds and their agents, the international bankers.
This is the new American litmus test.
Lentenlands 11 months ago
If you want to encourage the collapse exchange your paper currency into Nickels and Pennies, these are worth more than the face value due to the materials.
Emil246 11 months ago
8 people that has rated this video down must be bankes :)
johto 1 year ago
@johto bankers :p
johto 1 year ago
i dont understand, isnt that what banks do they take your money at any level and then loan it out isnt that almost the whole way they make money? and how does this put us at a lose because the money is inflated. by central banking counterfieting, the cost of everything now is pretty low and stable houses food gas etc. i dont understand inflation or how it effects me? it get that inflation happens when they make money without a standard but thats not the whole story?
bryanthebarber 1 year ago
I don't hold it a fraud—on both sides, it's simple betting. Except in the colloquialisms of common parlance, something is not a fraud until it is adjudged a fraud—same with crime, . . .
phillipgaley 1 year ago
I have a somewhat less educated question I just can't understand...please bear w/ me lol. I don't get why inflation is bad. The dollar not being worth as much just means you need more total dollars to equal the original value, but if theres more total dollars in the economy, how is this bad? the money is just paper, what would be the difference between the paper saying "1" that can buy me a coke vs. "100" if it can still buy me a coke? I'm sure my thoughts are flawed, but i just dont get it
jms8220 1 year ago
@jms8220
The thing is the money you saved doesn't increase, so you lose buying power. Let's go with your example and say you saved 100$, so you could have bought 100 cokes. Then you have inflation and suddenly you can only buy a single coke with your saved money. You were robbed 99 cokes. If you have a fixed salary and it's not increased or adjusted for inflation you lose too.
QuintusSecundus 1 year ago
@QuintusSecundus ahhh i seee. wow, this clears up a lot. thank you!
jms8220 1 year ago
3:55 - 4:05 argument Inconsistent! If inflation robs the value of savings, it equally well softens the value of debt (assuming nominal interest rate is held fixed)
nightvid08 1 year ago
@nightvid08 I agree, it robs (discourages) savings and softens (encourages) debt - eventually creating a nation of debtors (indentured servants) as I said in the video. I don't see the inconsistency.
lorax2013 1 year ago
@nightvid08 yes be most interest rates that relate to domestic debt are much higher than what banks barrow at.
burtonchalmers 10 months ago
@nightvid08 EXACTLY, THATS WHY A BUNCH OF RETARDS WENT AND BOUGHT HOUSES THEY COULDN"T AFFORD AND DEFAULTED ON THEIR MORTAGE FUCK YOU
rajkeshnajahnde 4 months ago
we live a fake, planned economy.
finefilth 1 year ago
your idea is sooo similar to Robert Kiyosaki's, i wonder if u read his book!
Feedfront 2 years ago
Plenty of people have this "idea" though it's still vastly less prolific than running along with the scam, it's imo simply a matter of opening your eyes.
flatnerd 2 years ago
Great video.
As others stated Zimbabwe did the same and they collapsed with starving millionaiers.
Now Western governments are doing the same. Bigger population so it is a slower process.
mad8london247 2 years ago
Top notch!
I know I am late to this vid, but this is exactly what is going on. Look at what happened to Zimbabwe when they tried this.
Our only saving grace IS the fact we are the de facto "international superpower".
We have been on such a decline since 1913 (federal reserve) and implementation of fiat currency.
PiratesWonderful 2 years ago
What's the point? How is this logical? Why would banks want to get allot of money if they are the ones that devalue it at the same time? What fortune? Why does inflation benefit the banks? What happens next? The system will collapse under itself? That does not sound like a sound or logical system.
DirectQuestion 2 years ago
@DirectQuestion LOL. you are thinking as a average person chasing dollars. MONEY = ENERGY. Money by itself is worthless but it is a store of the efforts of our work. We are slaves and we don't even know it.
Inflation is just a way to take that energy (indirectly) so most people don't even know or think of it as being taken.
They print money and spend it at pre-inflation value. We lose the amount of value they gained.
okvideos5 2 years ago
@okvideos5 But that is a very bad idea because you can do that for only a limited amount of time. Look at Zimbabwe.
DirectQuestion 2 years ago
@DirectQuestion That is true, but there are ways to prolong it before it collapses. Such as inflating slowly over time or keeping the excess money out of circulation.
The other thing the U.S. has is historical confidence in the U.S. economy and status as the world reserve currency. That's why even with printing trillions of excess dollars the dollar hasn't became worthless.... yet.
okvideos5 2 years ago
@okvideos:
Doesn't China have 2 trillion of these dollars?
mad8london247 2 years ago
@DirectQuestion Your right it is a bad idea, but the bankers/elite don't care and government is too stupid to think that far ahead (either that or they are doing it on purpose).
All government sees is that they can pay for infinite wars, infinite government programs, etc... "for free" all without collecting taxes. It is great for them.
okvideos5 2 years ago
@okvideos5 Maybe they are not so stupid. I have heard (but haven't yet researched) that America is planning on having a new currency, The Amero. It would also combine Mexico and Canada with the same currency. Maybe that was there plan all along?
DirectQuestion 2 years ago
@okvideos5 great comment ..spot on!
finefilth 1 year ago
This dude is crazy.What is F.D.I.C.?
brainsells3000 2 years ago
Yes the CURRENCY will collapse. But the puppet-masters of the Federal Reserve will simply move on to another country to bleed, while the USA recovers and regains its footing (in a few or several decades).
engineur 2 years ago
We need you in the government educating these stupid politicians.
chroNick546 2 years ago 8
@chroNick546 im sure they understand the risk or the damage it creates. however they get money either way by being a pawn and no matter what they win
SRT480 2 months ago in playlist More videos from lorax2013
@SRT480 I've heard that some politicians thought we are still on a gold standard.
chroNick546 2 months ago
@chroNick546 it seems inconcieveable. so it must be true
SRT480 2 months ago
Thank you for your excellent videos. You have a good understanding of things and are good at explaining matters that are sometimes hard to grap. I do appreciate.
LenGarc 2 years ago
sorry but,there is not enough precious metals in the world to back our economy and dollar.
xj2yzz 2 years ago
Absolutely there are enough PM's to provide for our economy and every other economy on Earth too...the way it works is the price of gold and silver (G/S) goes up to about $10k/$1k respectively for G/S and the dollar goes away period.
AccuracyMarked 2 years ago
plenty of them. the more populous the people become, the more valuable the metals become.
simple supply and demand.
helltrackrider 2 years ago
Yes, there are enough pms to back our economy and dollar. Simply revalue the amount of gold to the amount of dollars in circulation. Perhaps you have an issue with gold being worth $10,000 or so per ounce.
jimbobubbadj 2 years ago
Thanks. Real good news we all need to keep sustaining our own personal economies. Keep up the great work.
banziracer 2 years ago
Scary video.
vitriolicscott 2 years ago
This has been flagged as spam show
As for the American public, the reality that Obama is not up to the job seems to finally be setting-in; the poll numbers are now headed steadily south- is he already facing his Waterloo on this legislation?
Barack Obama will never say to your face what he actually plans to do. Everything's rolled-out in a Trojan horse. Theyll be no private insurance industry left after five years. Why should we give Government medical insurance to 15 million illegals?
hellotommy 2 years ago
This has been flagged as spam show
Nice try. Keep it up check out esteembpo + com for social media marketing. HGJYT
packrellerey 2 years ago
Good video. Only thing I would add, and you started to ask the question: Why would Govt allow this system to continue?
Because they benefit too. Govt spends too much and needs to finance its budget deficits. Taxes make Govt theft too obvious, so borrowing and inflation (increasing the money supply) are easier.
I don't think banks have taken over Govt. Banks have no army, police, or law creating power. But Govt has been enticed and is now addicted because of its spending and regulating habits.
thomasst2 2 years ago 2
Actually, the banks have all three things that you mentioned that they might not have. The reason they have these is because banks pay for them to exist. The military, police, all state services are payed for by deficit spending. There is no way to be a debtor without a creditor. Take a wild guess who the creditors are.
D1rtn4p 2 years ago 2
This has been flagged as spam show
Nice work. keep it up. mean time come for social media marketing for esteembpo**com
MonroeOgden 2 years ago
Why all the economic volatility all the time? We've been ripping off the planet for a hundred years. Isn't that enough cushion?
888zzz 2 years ago
Fraud requires deceit. Almost everyone understands banking, hence no fraud. It's just poor mon pol by the fed, no big sinister mystery. Were it tight and not recklessly loose, the banking sector would have allocated more effectively due to less money for coke parties (been to a couple.... they will be missed) among other things. You need to understand that under responsible MP our banking system works fine as a whole. We've just been greenspanned. This too will pass.
socalguy24 2 years ago
I love your use of the term "Greenspanned."
I think you give much too much credit to the average person in assuming they understand banking. They understand how a savings and checking account works, but that is the extent of their understanding.
D1rtn4p 2 years ago
thats odd, becuse the first time i found out about how the banking system worked i felt like i have been decived. and so does everyone else that wakes up to it. Hennry Ford stated "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." But remeber, EVERYONE UNDERSTANDS how it works. your a blinded fool.
turkeyduck123 2 years ago
I think nothing has any true value. Everything can be taken away with the stroke of a pen. One policy change and you will be forced to give up what you own. Only time will tell. Hopefully one day the majority of the world will wake up to what's happening and do something about it.
VagabonNinja 2 years ago
"Comex" sells "paper metal" promises beyond what it holds in its storage reserves....it'll be exciting to see a run on comex.
AccuracyMarked 2 years ago
Thank you Lorax2013! This the best (so far) of all your wonderful youtube videos!
powerbunZ 2 years ago
C'mon, people! This is what Ron Paul has been saying for THIRTY YEARS, man! Why do you think we support him?!
VoteLiberty 2 years ago 4
yea this dude should be president
killumianti99 2 years ago
Very well stated.
Hopefully more intelligent people will drop the blinding two party loyalties and rediscover their own powers stated and intentionally protected by the US Constitution.
idahoMW 2 years ago
santsuma 2 years ago
Uh, so what's preventing you from cashing out your money and getting rod of the whole "evil" fractional reserve?
ziqueez 2 years ago
when you realise these banks are allowed to create money from thin air, without putting in anything of their own, and collect interest on it , it becomes clear that the whole thing is a privately run pyramid scheme, im British, but if your American take out a note, and look at it see the pyramid with the bankers at the top? the government is just below this.
borotown 2 years ago 3
You can fool some of the people all of the time, all of the people some of the time - banking is an attempt to fool all of the people all of the time. Anyone who is suprised at the mess we are in now has been fooling themselfs.
GJWHITEHOUSE 2 years ago
they loans they give dont even come from existing money, they create it from thin air, and then charge interest on it, this increases the money in the system, reducing the value of the currency, so you need more money to pay for things because the money is now worth less, this is inflation.
borotown 2 years ago
Really informative, easy to digest look foward to more video's from you.
HustlepreneurTv 2 years ago 2
Yet even with the printing of trillions of dollars, the US dollar remains strong and inflation remains low. ???
inrtwd 2 years ago
The politically connected buddies who are the first to get the fiat money purchase real assets while the effects of inflation take longer to reverberate throughout the economy. This is the stealth evil of inflation.
qkholster 2 years ago 2
But the developed world actually seems to be heading towards deflationary times. What gives?
inrtwd 2 years ago
The prices of technology are deflating. As more of the economy becomes tied to information technology it will have deflationary pressure put on it. For example, a computer that you can buy today will cost half as much and be twice as powerful as a computer that you would purchase two years ago.
We will see if the central banking cartel will inflate at a velocity greater than this technology related deflationary pressure.
qkholster 2 years ago
But real estate prices are also down. Same with cars, food, clothing, etc. I think we may already be in a deflationary period.
inrtwd 2 years ago
I think I know what's going on. Governments hate deflation because it makes their outstanding debt obligations increase in real value. Stimulus packages are a deliberate attempt to create enough inflation to counter deflationary forces. Unfortunately they take a long time to work. In the meantime, people are still worried about losing their jobs (if they haven't already), so they continue to rein in their spending and support continued deflation.
inrtwd 2 years ago
I think you're right. Once the inflation hit we'll be in huge trouble. Lets hope it will never come. Oops its too late!
moniequa 2 years ago
Nice job.
clayvessel 2 years ago
Great stuff.
What do you think of Harry Dent's opinion that we should hold cash (for now)?
The idea being wait until real estate hits bottom somewhere around late 2009 early 2010 and buy real estate cheap.
Globalpack 2 years ago
well, since i've already done that, what else is there?
dudeulartv 2 years ago
right, so what exactly should people do, or at least consider doing to help themselves or others...?
dudeulartv 2 years ago
You can stop spending reckless, stop borrowing and only live within or below your means.
moniequa 2 years ago
Well, I showed my friends this video. I was enthusiastic and hopeful... but it didn't work. In fact, it sparked a pretty nasty argument. I think I'm alienating my friends because I can't be quiet about what's going on right now, or at least my perception of such. They had many counters for the video content itself, most of which aren't important. In any case, they won't consider what seems to me to be evidence, or entertain any opinion other than the one they've already decided on.
drutter 2 years ago
the problem is that honest competent people such as lorax are not in charge. the con-men are in charge. so although it is nice to have lorax explain how we all are being screwed, it has no effect. all we can do is wait for the collapse and start all over again.
ironmanjakarta 2 years ago 10
@ironmanjakarta OOOr we can screw waiting and encourage a financial collapse by rejecting the financial system where possible to do :)
Kyocus 8 months ago
@ironmanjakarta One day people might realize that no one ought to be in charge.
Esoparagon 3 months ago
Are you from the planet Orion Mr lizard?
ObsessiveDetailer 2 years ago
you have an excellent channel, keep it up!
MCOGBDOG 2 years ago
Sigh. I think I'm infatuated.
peevishpear 2 years ago
I especially like the point around the 6:00 mark. Thank you.
snowtrot 2 years ago
A lot of good points. However, FDR made gold illegal to own when the currency was created. It was necessary to remove gold to enable circulation of the new currency. The solution to declining US manufacturing is to only buy US made items, not Chinese. Though that won't happen because we have capitalism, and lowest price wins, regardless of long-term harm to our own economy.
jamesia13 2 years ago
The best solution I know, in times zero true GDP growth, is to transition out of currency onto something, like precious metal, which can't be counterfeited by others. In some instances, esp during GDP growth, another strategy would be to invest in business.
lorax2013 2 years ago
"transition out of currency onto something, like precious metal"
So how much would you trade for an apple?
1 gram of gold is $30 (453 grams = 1lb). Are you going to give someone a pinch of dust or shavings for your morning coffee?
Theopolitical 2 years ago 3
most suggestions that I am aware of involve going back to a gold standard for the dollar or allowing private currencies that are backed by gold. You don't get rid of money, you just make the money have intrinsic value.
bhweller 2 years ago 2
@lorax2013
wouldn't precious metals and business be worthless if the currency collapsed.
1Jinxed1 10 months ago
@1Jinxed1 Im hording silver but I doubt seriously that it will be worth something when the collapse hit...But I guess I rather have it than not have it.
acts131 10 months ago
@acts131
Indeed, it would be better having gold or silver than cash.
things that would be worth more are things that people need.
but i guess once an economy grows it would be worth something again lol.
1Jinxed1 10 months ago
@1Jinxed1 forget about gold or silver,,, those can be just as inflated as cash! Gold , silver, cash, Cattle, sheep, People. what does it all matter? trade is trade. Nowadays people are Bartaring ( if i spelled that right) to get needed services or items. You mow my yard, i wash ur windows type thing!
Dreambro1 4 months ago
The federal reserve invests in long term treasures this seems a perpetration against the middle class.,The feds are also backing precious metals.What stats, investing diversity is one thing strategy skill set experience think about the long term one key is timing a recommendation is the film "The Money Lenders" added explanation consider the underlying economic factors in uncertain economic times glad I subscribed..
brightlightbabe 2 years ago
Another excellent video. It's amazing to me that so many people still see investing in precious metals or other hard assets as crazy or unsafe even after the massive bubbles and bursts that people have experienced over the past 15 years.
nietzsche12 2 years ago
The whole point of the republican party since the
cold war ended was to "drown the beast" with
the beast being BIG GOVERNMENT. Well,
they certainly did their job to the max. They
took the entire economy plus the global
economy with them. I guess they could say
with great pride "MISSION ACCOMPLISHED"!!
They left our first black president with no options
for the economy or for Iraq. U almost have to
admire the biggest bunch of traitors & most treacherous fanatics in our countries history.
danger0usknowledge 2 years ago
This guys an idiot.
cindersphere 2 years ago
wtf?? ur the idiot.
(but i bet your money is safely in the bank)
majortom321 2 years ago 2
Great video! Lorax when do you think the dollar will become completely worthless?
SilverWealth23 2 years ago
'start transferring your paper currency into something that actually retains value'.
what does this mean?
what would an example of this be?
thanks
Quandon 2 years ago
"'start transferring your paper currency into something that actually retains value'.
what would an example of this be?"
He means a gold system, possibly even a coin system.
Earlier people would trade based on metals. You would weigh the metal (usually silver/gold) and that would determine your currency's value.
In this way you couldn't really "counterfeit" (baring chipping coins or watering down the metal) money, because if you made a 1 ounce gold coin it would be 1 ounces of gold.
Theopolitical 2 years ago
oh i see,
thanks for the info
Quandon 2 years ago
god is everyone who watched this video missing the point, the central bank can actually create money that doesnt exist, hence creating inflation... so before you come on here with your college loldegree in finanace, get off the man's dick and watch the video again kids.
akira6666666 2 years ago
"the central bank can actually create money that doesnt exist, hence creating inflation"
If inflation increases slower than GDP, we come out ahead.
If you made $10 without barrowing but could make $1000 with barrowing (and paid $100 in interest and lost $100 due to inflation) you would still come out ahead (by $790 in this case, or +7900%).
Theopolitical 2 years ago
That is like saying, if I make $1000 and someone only steals $100 "I come out ahead". Sure, you still have more money but that doesn't negate the fact you were robbed. With an increasing GDP and a fixed money supply, everyone's $ would be more valuable every year. Yes, banks can inflate the $ supply, pay a fraction as interest, and you still come out "ahead" as long as GDP rises more than inflation. However, you would have gained more if there were no inflation of $ supply - even w/o interest.
lorax2013 2 years ago
"if I make $1000 and someone only steals $100"
That is only if you believe inflation is theft (or interest payments).
If you don't understand economic activity you might think paying for things you bought is theft (you had $10, but when you picked up food at the store you only had $5; that other $5 must have been stolen from you, since there is no way that you could actually trade one thing for another).
Theopolitical 2 years ago
It looks like you don't know where you interms of inflation and banking system.
moniequa 2 years ago
"With an increasing GDP and a fixed money supply, everyone's $ would be more valuable every year"
Yes, and if people would magically work for nothing and you magically had infinite natural resources you could become very rich, very quick.
However, our GDP growth comes, in part, from our barrowing.
"you would have gained more if there were no inflation of $ supply"
Yes, and you would gain more if everything in the grocery store was free. However money now requires interest later.
Theopolitical 2 years ago
stand
moniequa 2 years ago
how about you stfu.
Silverjda 2 years ago
ROTFLMAO
God I love it when educated people reduce non educated people to saying stfu
thequietkid10 2 years ago
and the banks funded communism and socialism to keep the people in serfdom, i get it you don't need a phd to get that, but perhaps a doctor could help you out, DR. RON PAUL.
bloggop 2 years ago
"the banks funded communism and socialism"
The banks are a capitalist enterprise, which is why they are out for profit (and don't hold your money securely in a vault for free).
Theopolitical 2 years ago
Calling (our) banks "capitalist" is not correct - they are a cartel granted special privileges through govt influence peddling. They are far from the principles of free market capitalism. Economists can't deny this no matter how they dance around it.
lorax2013 2 years ago
"Calling (our) banks 'capitalist' is not correct - they are a cartel"
Actually it is a limit on the free market not to allow cartels or monopolies. It is not capitalist to limit them, in any way.
Theopolitical 2 years ago
Rather than have you pay for their service, you instead allow your money to be lent out (and often gain interest).
They already have a system where no fractional lending is allowed, it is called a "safety deposit box"...
Theopolitical 2 years ago
yes its true folks, we've been had
tmprogram 2 years ago
"we've been had"
This video tries to point out that the bankers "scammed" you by lending your money out, but only the very naive would believe it is fraud.
When you go to a bank they often have a building, a parking lot and employees. They sometimes have a vault and security personnel.
If you don't understand that those assets were paid for with money the bank made (through banking) then you've missed the entire point of the banking business.
Theopolitical 2 years ago
look up and learn the way banking used to be before the federal reserve. in fact just look at how was before 1971 and then tell me its not a scam
tmprogram 2 years ago
Comment removed
Theopolitical 2 years ago
ok but two points: intentional bad loans and of course it would collapse the fed is what makes the economy now and they have us by the balls with their fiat currency and fake economy whick is a bad thing
tmprogram 2 years ago
"intentional bad loans"
What this video is talking about is any loans, not bad loans.
Good house loans increase our nation's wealth; bad house loans decrease our nation's wealth.
lorax2013 fails to distinguish between the two.
"fake economy whick is a bad thing"
If you can use that fake economy to feed people and to have people work for you, why is it bad? Would you rather we all work as hard as sweat shop laborers for the same pay?
Theopolitical 2 years ago
can you get to the point right away i have a short attention span
raekota 2 years ago
Leveraged investing has nothing to do with increasing inflation. Leveraged investing was going on in Japan throughout periods of deflation.
kenzaburo 2 years ago
Please explain your theory on how leveraged investing by banks increases inflation. The Fed pumping new money into the system increases inflation, not the average bank's lending practices. If they have 100 million deposited by customers, and they invest 95 million while keeping 5 mil on hand to pay off depositors, there was no increase in the money supply and no inflation increase. Explain how it is.
RuflessRecords 2 years ago
It's not fraud, it's what banks always have done, the theory being the depositors will never all withdraw their money at the same time or most of them at the same time. I do think they should increase the reserve requirements, but it would only work if foreign banks did too, otherwise foreign banks would be at a big advantage and beat our banks on profits. Leverage doesn't create inflation.
RuflessRecords 2 years ago
This video, I'm sorry, is done by someone with an extreme bias.
IT IS NOT FRAUD.
"This scam" denotes bias.
"fractional reserve scam" denotes bias.
And besides that, it's just wrong.
And if he's willing to debate that with someone who IS an economist, he's more than welcome.
The number of errors in this video, is just insane. Wayyyyyyy too many, for me to point out in 500 characters.
AirelonTrading 2 years ago
And that's not even going NEAR the lack of understanding of any sort of credit intermediation.
Basically, you have people like this Lorax, who feels himself to be an expert, trying to teach others? And their own understanding is EXTREMELY limited, or just flat out false.
AirelonTrading 2 years ago
lol
brianempson 2 years ago
Airelon is right. This yet another person with no real understanding of economics who is oversimplifying things to the point of being wrong. There are too many errors and disingenuous statements here to even mention. Here's a thought: How much do you pay for your checking/ATM account? Mine is free. Why? Because banks profit from investing, not services. If it wasn't this way, you'd be paying through the nose for the convenience of checks/ATM transactions.
verumdicere 2 years ago
"And besides that, it's just wrong."
Your opinion is duly noted. If you have any actual arguments please lay them out.
"The number of errors in this video, is just insane."
And yet you failed to point out a single factual error. Your comment doesn't really add value to the discussion.
rseveran 2 years ago
Thanks rseveran, you beat me to that comment. I'm happy to debate if anyone brings up an actual point besides "he's not an economist".
lorax2013 2 years ago
I've been doing that for about 300 videos, and 400 + blog entries. I let my own work and accurate track record speak for itself when it comes to economics.
AirelonTrading 2 years ago
salam... peace
i have to hear this a few times .... i doubt my understanding coz maybe i am sleepy.
arifdesign 2 years ago
Kind of hard to understand it if you don't have a background in economics/accounting I guess.
Basically it means Guy "A" gives Guy "B" a paper with signed money as a lend. Then "B" buys something with that paper from "C". "C" guy doesn't get his money as cash he gets it as a signed note. "C" guy buys something else from "D"! and so on, with the same exact "bank note" signed by the first guy, the lender.
AccountantX 2 years ago
salam.... peace
thanks for the explanation.. i so much like to understand this economy subject. need to google some more....lol
arifdesign 2 years ago
Thank you for that wise and astute commentary.
garydonpowell 2 years ago
muhammadyunus dot o r g .... could be the solution?
youniverse9 2 years ago
The media talking heads are just puppets controlled by their corrupt higher-ups. They're more pathetic than I ever imagined. lol
TrashyGlitter 2 years ago
Thge banks do pay interest to the depositor.
jdcremin 2 years ago
is it possible they are deliberately trying to collapse the dollar to convince us we need a world bank? If so, how would this transition work? and why would the rest of the world follow?
ExplicitContent81 2 years ago
This fella, Ron Paul, Jim Rogers, and Peter Schiff have warned us what the Federal Government is doing and how it will end. Our Government I believe wants to collapse the economy they have something coming for us, will it be the Amero currency or the microchipping us? We will end up as slaves in their One World Government.
starlight1946 2 years ago
Listening to you is like when I had a crush on my science teacher in highschool... I have to listen and learn because you are so intellectually sexy :)
revisedtara 2 years ago
So where do we buy precious metals from? And does this include titanium?
Globalpack 2 years ago
Next step: Let the catastrophe to its full extent and ... let popular pressure ask for a solution ... "This time it's different!" ... TADA ... Enter the Amero + Clean Slave ... woops ;0) ... Clean Slate of past debt.
MyZenSide 2 years ago
Are we heading for the Amero money? Next the microchip as Aaron Russo once told about.
starlight1946 2 years ago
Your explanation was enlightening, I just wish more Greeks were interested on the topics you are talking about, considering that our economy is almost at a "RIP" state.
JustIannis 2 years ago
in the US gov`t we dont have greeks, just GEEKS. thus, the massive apocolyptic mess that has been thrust upon us
marcusguernsey 2 years ago
So, the real solution is to become a bank... sorta like how Chase bank has grown so much, or on a smaller scale but more widespread, credit unions, and also, corporations with their IPOs (the latter not really frantional reserve, but they can "swell" money if managed properly).
Do a vid about how we can make our own banks, or something like that.
bajan13k 2 years ago
I was thinking to make a comedy video about how to open your own bank - with a real life call to the Fed asking which form I fill out so I can get their currently near zero interest money. In reality, red tape is a very effective tool for controlling people and I'm sure this is what you will encounter if you ask for the same rights given to the banking cartel. Anyone is willing to try and video tape their attempt - it would be funny to see I imagine.
lorax2013 2 years ago
I don't fully understand these economic systems, honestly, but I do understand that most economists can't fully understand them either if they think it is a well-balanced system.
I did watch a video that talked about how a well-balanced script (fiat money) was used to actually stabilize and economy; it was effectively backed by labour rather than precious metals, because it was regulated by a local government by public sector salaries and taxes.
I hope to learn more indepth soon.
bajan13k 2 years ago
You would have to have a HONEST and unchanging measure of GDP to use such a system. Government spending would have to be excluded and true balanced budgets required.The self regulalating aspects would also lag somewhat, but it would be better than what we have now.
frgtmygld 2 years ago
In an interesting coincidence, arstechnica is now running a stroy about how the Swedish-based Entorpia online just got granted a banking liscence... but i'm not sure if that means they can use frb or not.
In any case, it seems the way forwards is to first make an online game which is operates at a profit.
bajan13k 2 years ago
The federal reserve has an updated press release on site and a publication on monetary policy for those whom are interested more info to consider.lorax is on it. with exceptional insight.
brightlightbabe 2 years ago
Thanks for the explanation..great info!
ddiiaa52 2 years ago
Wow, you explained this really really well, thanks for the post. i favorited it i liked it so much!
you should favorite this too!
ty99999returns 2 years ago
excellent as usual lorax
buzznews1 2 years ago
Central banks are fine AS LONG AS they are owned by the government, as in the case of Canada, England, France. In the US the central bank is a private cartel.
Fractional reserve banking is also fine AS LONG AS interest rates are set by the free market, and there is a sufficient reserve requirement.
In the US the reserve requirement is only 10%.
Teller3448 2 years ago
I disagree that fractional reserve banking is anything but fraud. Promising to "hold" a deposit and then lending it out is fraud. That is why you need a Central Bank - to help cover up the fraud by constantly inflating away bank losses and shifting that burden to the public.
lorax2013 2 years ago
Very well said.
PatriotismIsSlavery 2 years ago
That 10% doesn't mean that they hold 10% of the money, and lend 90% of it, though... it means that they lend $9 for ever $1 that they actually have.
bajan13k 2 years ago
so whaddyawannado? go joker on their asses?
faszika 2 years ago
Well i could just as easily argue that capatilism is exploitive of ones labor with or without a central bank. It was my understanding that a central bank existed because when a economy becomes massive you need a buffer during downturns in the economy to prevent constant collapses. I also think the notion of a free market is silly , its like saying a dry ocean.
mitchrix31 2 years ago
mitchrix31, a free market, is simply an environment in which people are FREE to exchange goods and services for other goods and services they'd rather have. If you think "free market" is an oxymoron, you might consider the contradiction in "effective central planning." It's awful difficult to manage the lives of 300 million Americans. And it's awful difficult for anyone with that kind of power to NOT abuse it.
truthadvocate 2 years ago
You have a good point truth, i just think that when 2% of the population owns 50 % of the wealth, a free market is allowing them to exploit us even more. I mean with this horrible system at least we potentially have a say.
mitchrix31 2 years ago
It seems like the human condition requires the acqusition of the "material status" and icons of status. The big problem is the iniquity of wealth and the means used to maintain the iniquity. The rich people will want to bond with their own rich class and will not care what happens to anyone else. The ability to lock people up or send them to war is not a "superpower", but the power of "superstank", because the stank of this is strong. Let's everyone grow energy on hydroponic algae farms.
hypnofan35 2 years ago