But what is money? It's nothing more than an IOU, an empty promissory note. Every note says: I promise to give the bearer on demand the sum of £5, £10, or what ever 'value' they put on it. But what is the sum of £10? It's not the actual note, because the note itself represents the sum of £10. So it's £10 of what?
I agree with the video in general, but the devil is in the details.
If the conclusion here is that GOVERNMENT is the one who should be printing money in order to fund schools and hospitals - then this will have an even worse outcome.
The amount of money should be constant, and fixed to Gold or a set standard which cannot be manipulated centrally.
since politicians are even more corrupt than bankers, we shouldn't trust them with a licence to steal from us unlimited resources.
@LibertyDownUnder politicians are corrupted BY the bankers. democracy and liberty are not opposing ideas. the Austrian school is simply wrong when it comes to monetary policy.
@LibertyDownUnder i don't think it's an issue of giving government more power per se, but giving more power to democratic control over governance. Like Bryan said, "the banks should get out of the governing business". Again, liberty and democracy are not opposing ideas. We demand our rights. Personally I don't agree with the National Bank concept, but I agree that government should control the currency issue. Jefferson, Paine, Adam Smith and others would agree.
@etzel33, well letting elected politicians control of the money supply DOES give them unlimited power. So you're contradicting yourself.
If you get the Government out of the business of regulating, subsidising and bailing out banks - then individuals would get more of a say through competition, and they would be more responsible with their investment choices.
@LibertyDownUnder "them" vs. "us"... the real issue is the corruption of the electoral process itself. Nobody elects a banker, yet they enjoy vast privileges of, well, FRAUD to invent debt out of nothing. Fraud should be "regulated", right? Isn't that what banking really is? Democracy is much better than monarchy, or corporate dictatorship, or whatever alternative you might suggest.
@etzel33, 1st of all YOU elect the banker when you deposit your money in a bank.
If they get corrupt or inefficient, you can take your money out.
The Government is the one who allows & encourages the "fraud" of creating money from nothing. So no, fraud should not be regulated - it should be ileagal.
@LibertyDownUnder awe c'maan now, you don't elect a banker because you shopped around. Bankers have legal privilege to issue unsecured credit. The notion of banks as "financial intermediaries" between savers and lenders is a good, honest function. Today they serve as bookies with their only assets being the titles to debt. There's no need for this, especially for gov't to "borrow" money from banks when it can issue sovereign currency.
@LibertyDownUnder lol... I'm still thinking about it too :) I think it has to do with identifying the "demand" for national currency, which is "taxation". If taxes were shifted away from labor and trade, and toward "privilege" like land, severance and pollution taxes, a token currency would work quite well. At least that's the direction I'm going.
@LibertyDownUnder there is always a demand for natural resources and land from which all material production is derived. The intention to shift away from labor is because labor is human beings, and the function of gov't should be to protect people not to enslave them. That's the "moral" reason, but also because demand for token currency won't occur with labor unless you outlaw alternative currencies, which is also invasive. Jefferson, Smith, Paine and George agreed.
@etzel33 "demand for token currency won't occur with labor unless you outlaw alternative currencies" ?? Where did you get this?
Gold was the currency of the free market long before there was anyone around to outlaw it. Human being are actually able to function without politicians dictating their daily lives.
@LibertyDownUnder sure, commodities have been traded since the beginning of time. Gold, of course, can be fractionalized like anything else, but I digress. I'm speaking of national currency, which can be issued as a valueless token like Lincoln's Greenbacks or Colonial Scrip. I have no problem with commodities trading or private currency. I do have a big problem with demanding commodities as taxes whether it's gold, wheat or whatever.
@etzel33, the cartoon I sent goes into detail about this. In their cases they use fish as the means of exchange, but it just for illustration of the difference between counterfitting and real work.
@LibertyDownUnder i watched the video and I'm aware of Irwin Schiff and his decades long struggle with the IRS. Please understand I am no fan of income taxes.
@etzel33, the clip is not really a criticism of tax itself, it's more about welfare, minimum wage laws, vote buying, and particularly banking & inflation.
There's simple answers to just about all the problems with the economy in these ideas, and if more people were aware of them - life in general would be a lot easier.
@LibertyDownUnder well, perhaps we should take this off this poor good person's video comment area and discuss those many topics elsewhere!!! :) enjoyed the banter
True, i'm studying economics. The bank do have a fractional reserve but they don't have the money they lend, they *create* it. Let's say 10% as a normal fractional reserve. If the bank have 1 million, they lend 900, 000$, out of that they can lend again 800,100 $ and again with 90% of that amount ect. At the end, the money lended is about 10X the original amount, 10 million have been lend (with interests) with the 1 million the bank had. That means they created 9 million dollars out of nothing.
only 17k views.. damn.. we'll never get banks on their knees. Only 1 or 2 % of the population actually knows what's going on. Then again, better then zero.
The people who made this video are simply indoctrinated BEYOND stupid. They're so mentally retarded they believe this bullshit. Why not make a video on internal combustion engines? You don't know shit about them either so why not? Why not come up with bullshit videos on every subject? You could be the next Chomsky!
@williamb90 Gold will NOT work if fractional reserve still works. Gold worked when a small amount of the money supply was created privately. That is not the case today. What we need is gov't issued debt free money.
@ieng182 A lot of the liquidity in todays financial markets is essentially drug money, particularly from the mexican cocaine cartels. When they started witholding cash from Wachovia (the main US laundry), some major banks were forced to borrow from the fed. This lead to the liquidity crunch that caused the financial crisis.
@whydidigetdeleted money laundry is simple, you got money from drugs, you investment your money to some corporate or build new corporate under their mafia law, then when you got profit you send it to the bank. the major problem bank is they don't have enough money to collect due to pay they organized system, i.e they employment and business taxes to government.
If you don't like this systems where the Central Banks creates credit out of nothing through the delegation to private banks, try to buy an house paying with the savings you have under the mattress. After you fail that, try to think if living with financial markets is in principle better than not. Try to study some macro-economics, and try to stop believing in all sort of bullshit fairy tales.
@zakmck73 How about ending the delegation and letting the gov't give the taxpayer the spoils of printing money through lower taxes and direct payment? Net UK money is -£306bn. This means that if all money was used to pay off debt then there would be no money and £306bn of debt.
@whydidigetdeleted why should distributed money-creation power be better than a central independent authority? Theory and practice show that's not the case. Public debt is a different issue, it won't never be repaid fully, gov spending has an economy stimulation effect, we do need some state in the economy to ensure some justice and the problem is never how much debt but how much growth wrt the gov deficit.
Banks create money because they charge an interest cost for each loan. You can't be serious when you think banks can just 'make' money or change some numbers.
If that would be possible, how come so many banks have debt problems and liquidity problems these days???
We are serious - as well as chief economics editor at the Financial Times Martin Wolf, when he says that "The essence of the contemporary monetary system is the creation of money, out of nothing, by private banks' often foolish lending."
"When banks make loans, commercial banks do indeed create much of the money in the economy." Bank of England - you can find the original letter on our website.
When banks make loans, they create new money, but the new money then allows them to make more loans. This process continues and means that the banks will never ‘run out’ of money - they will just keep lending until eventually it gets to the point where the debt burden becomes too high - some people simply can't afford the interest on their debt, and then individuals, households or companies start to default - and the banks suddenly become insolvent on paper.
@PositiveMoneyUK In theory they can leverage themselves to infinity, assuming there won't be any bank run. Any bank right now collapses if a bank run occurs. Leveraging 1 to 15, 1 to 20 or even 1 to 30, makes the banks bankrupt with the tiniest decay of assets. But banks are not stupid, they charge you fees and maintenance costs, so you always need to have money in your account, if you don't want to get in trouble.
@belgieisdood take a look at "Crisis by design" / the crime of the canadian banking system or "Money as Debt" or true world history dot info has a good section on banking.
@belgieisdood Cause every loan created by every bank is also a loan to the IMF.The banks actualy borrow this money from an international Bank.European rates as far as i know have dropped to 1% now but that includes banks only.It is a bit more complex that it sounds including leverage and a 10%(which NEVER occurs) more deposits than loan to create a new loan and stuff....
Long-term Elimination and Prevention Technique for Inflation and Unemployment
An intrinsic, limited and scare non-necessity commodity such as gold, silver nor fiat money, as the unit of account, and non-globalization of macroeconomics is to blame for financial crisis. Food and Agriculture, as the unit of account, is the long-term solution for financial crisis, with complement to rules under the Rome Declaration on World Food Security. Do you agree or disagree?
Long-term Elimination and Prevention Technique for Inflation and Unemployment
In an ideal situation, where and when Real Gross Domestic Necessity Goods (RGDNG) such as Food and Agriculture is the unit of account, demand and supply of necessity goods (food and agriculture) is directly proportional to Real Gross Domestic Product (GDP). Thus, Real Gross Domestic Necessity Goods (RGDNG) prevents inflation and unemployment.
We want banks to be businesses of lending money - lending money that they have to borrow from savers first. However that's not how it works today. A bank doesn't actually need to have any real money before it can make a loan to someone.
When you take out a mortgage from the bank, the bank doesn't take that money from somebody's grandma's life savings. No. Instead, they simply open up a computer, and type some numbers into your account.
When you put money in the bank in the present system it becomes the banks' legal property to do as they like with. Regardless of your ethics this money is used to invest in ventures such as arms industry, large scale oil and gas infrastructure that give the banks short-term profits.
The Biggest Evil scam ever played on the People of the world....They literally created a Paper God Of Debt & Death and poverty at the expense of the worker
@MyHipHopTunes - Join the campaign on the Positive Money website (dot org dot uk) and help spread the awareness. Too many are still unaware of this most fundamental flaw in the system.
Great video, thanks. But it begs the question. How do they get away with it? Easy. As of 8 July, 2011 (about a month), this video has 3,464 views. Justin Beiber's 'Baby' video? 581,356,101 (averaging 48,446,341 views per month).
@PositiveMoneyUK Why are you pushing this garbage? You've got one little fact: the bankers are able to create money out of thin air, and you've based an entire campaign around it? Talk about a gross misalocation of resources!
I'd happy to debate you anyday to prove you're talking out of your hat. Stop with this nonsense and start learning about real economics.
@cookdave@thomaserossi Why would you defend the very root of scarcity in our civilization? Cant you realize that our life styles would be way better without the illusion of property, money and what you dare to call "real economics"?
Funny how modern economics is all about waste of resources, scarcity and the self perpetuation of institutions, and has nothing to do with the "managing of the household" concept, you know, the etymological meaning of economy.
@lachdanan666 Money reformers are all over the place on this, on the one hand they attack banks for creating an abundance of cash 'out of thin air' and on the other they also berate them for causing artificial scarcity. Well they can't be doing both now can they?
The economics of scarcity are bound up with the monopolisation of earth's finite resources, ownership of common property such as land has been distributed by the state to the benefit of the few and detriment of the many.
@cookdave We as the human race can solve our problems: is just a matter of decision, but we're too used to the incentive paradigm, so no one gives a damn if they won't profit from it. @TheDarkFenix We do need a RBE, but we need a transition towards it first, and thats where the abolishing of the current banking system and the reform of our values and thinking paradigms should aim: education, health, transport, energy, we need our society to be designed in the direction of what we want and need!
@lachdanan666 A big problem in both politics and economics is that very few understand the difference between profit and economic rent so they end up attacking the wrong things. Profit is something to be encouraged (even in banking) as it's a sign the business is doing well, economic rent is a simple transfer of wealth and therefor economically harmful.
@cookdave Sure thing, but don't you agree that this economic paradigm is somehow obsolete and we need something radically different in order to survive and thrive?
In the middle ages money lenders [loan sharks] would be run out of villages. Today there are Gods. If MP's are all part of the big scam, how do we stop it? Tony Blair de-regulated the banks and now works for J P Morgan part time for £2 million a year. This is not a back hander, its all out in to the open.
this is wrong. the problem lies within the legislation and the federal reserve that allow the banks to put out 1000% in loans contrast to the capital that they hold! look this information up.
A biggest public campaign has started to end fractional reserve banking, look at the POSITIVE MONEY website and support the campaign ...and spread the word.
Thanks. I have 2 of my own video's I'm promoting there. I have another American Dream Film at this Link. You can put them on the Video comment there if you want.
Nice remix, I like the creepy music.. Maybe the music should get more positive at the end when you mention the solution? Also I wonder if it needs a clearer call to action if people don't see how we could take their money printing license away.
@JollSSteR to an extent though mate I hardly brought a country to the verge of financial collapse due to toxic loans and lending. Greed is greed but the bankers took it to a whole new level we're the ones suffering while they still get bonuses.
Banks don't just lend to private individuals. Banks also lend billions of pounds to the government to facilitate the provision of public services - to deny this in your video is disingenuous. How do you think the government finances the deficit?
Also, you want to prevent banks from creating money out of nothing, whilst at the same time allowing the government to create money out of nothing. It doesn't make sense. No one should be able to create money out of nothing.
@monetaryintelligence - the government finances it deficit by borrowing mainly from pension funds and insurance companies. Very little of the deficit is financed by borrowing from banks. Have a look at who owns the national debt (in the UK at least) - around 40% is owed to pension funds and insurance companies, 40% to foreigners, and only about 3% is owed to banks.
We want the state (not politicians) to create money at the rate that doesn't cause inflation to accelerate.
@bendyson1 I agree. Nevertheless banks do lend money to the government to help finance government services. However, I should have been more accurate with my first response and for that I apologise.
The thought of the government being able to create money out of nothing scares the life out of me. Can you imagine the cronyism that would result? Having the power to create money out of nothing is an unbelievable privilege; a privilege that no one, in my opinion, should have.
@monetaryintelligence - definitely, there's a risk of cronyism and political abuse if it's not set up just right. Have a look at the work we've done at Positive Money (see Our Proposals > Draft Legislation) into ways of making sure there's as little potential for abuse as possible. It's not perfect but it's many times better than the current system. A truly fixed money supply just isn't politically feasible at the moment, however much more secure it would be.
@PositiveMoneyUK I have just read the Draft Legislation part on your website (which I should have done before shooting my mouth off!). It made me think about something that I was reading recently on another website. Are you aware of the FOFOA blog? FOFOA's idea is called Freegold and it would fit perfectly with your proposals.
The Freegold proposal would serve as a restraint of the issuance of currency either by private banks or by the government. My personal preference is for competing...
@monetaryintelligence A good guy on YouTube called BrotherJohnF, who's work I respect, seems to think FOFOA is a shill, a clever one but still a shill. I haven't looked into FOFOA as I'd never heard anyone else talk about him until now. I think competing local currencies are a good idea, if that's what you were going to say. Utah has legalised US precious metal coins to be used as money based on the actual metal's value and to be tax exempt. Mexico is thinking of doing the same with silver.
@PositiveMoneyUK ... gold-backed currencies issued by private banks. However, the combination of your proposals with FOFOA's Freegold proposal could be a viable alternative. I would prefer the government to have nothing to do with the issuance of money/currency, but I do realise that politics is the 'art of the possible'.
I would be interested in hearing your views with regards to your proposal working in conjunction with the Freegold proposal.
@monetaryintelligence What do you mean, "imagine the cronyism"? It's already backed in the cake. Tony Blair leaves office and gets £2 MILLION / annum for being on the board of JP Morgan. Goldman Sachs runs half of Washington; Hank Paulson (ex Goldman CEO) becomes US Treasury Secretary and dishes out all that cash to the Banks and not even just US Banks. Then comes Geithner also from GS. The scam is off the charts!
This needs to be sent around, I fuckin hate banks now lol
123wowboy123 1 month ago
But what is money? It's nothing more than an IOU, an empty promissory note. Every note says: I promise to give the bearer on demand the sum of £5, £10, or what ever 'value' they put on it. But what is the sum of £10? It's not the actual note, because the note itself represents the sum of £10. So it's £10 of what?
curwoodm66 1 month ago
I agree with the video in general, but the devil is in the details.
If the conclusion here is that GOVERNMENT is the one who should be printing money in order to fund schools and hospitals - then this will have an even worse outcome.
The amount of money should be constant, and fixed to Gold or a set standard which cannot be manipulated centrally.
since politicians are even more corrupt than bankers, we shouldn't trust them with a licence to steal from us unlimited resources.
LibertyDownUnder 1 month ago
@LibertyDownUnder politicians are corrupted BY the bankers. democracy and liberty are not opposing ideas. the Austrian school is simply wrong when it comes to monetary policy.
etzel33 1 month ago
@etzel33, of course politicians are corrupted by bankers, but it obviously takes 2 to tango.
If the Government is easily corrupted - then how is giving it MORE power to regulate going to help? Historically it has shown to do the opposite.
Obviously the big banks are going to have an open line of communication with the central bank, and an unlimited amout of easy credit.
LibertyDownUnder 1 month ago
@LibertyDownUnder i don't think it's an issue of giving government more power per se, but giving more power to democratic control over governance. Like Bryan said, "the banks should get out of the governing business". Again, liberty and democracy are not opposing ideas. We demand our rights. Personally I don't agree with the National Bank concept, but I agree that government should control the currency issue. Jefferson, Paine, Adam Smith and others would agree.
etzel33 1 month ago
@etzel33, well letting elected politicians control of the money supply DOES give them unlimited power. So you're contradicting yourself.
If you get the Government out of the business of regulating, subsidising and bailing out banks - then individuals would get more of a say through competition, and they would be more responsible with their investment choices.
LibertyDownUnder 1 month ago
@LibertyDownUnder "them" vs. "us"... the real issue is the corruption of the electoral process itself. Nobody elects a banker, yet they enjoy vast privileges of, well, FRAUD to invent debt out of nothing. Fraud should be "regulated", right? Isn't that what banking really is? Democracy is much better than monarchy, or corporate dictatorship, or whatever alternative you might suggest.
etzel33 1 month ago
@etzel33, 1st of all YOU elect the banker when you deposit your money in a bank.
If they get corrupt or inefficient, you can take your money out.
The Government is the one who allows & encourages the "fraud" of creating money from nothing. So no, fraud should not be regulated - it should be ileagal.
LibertyDownUnder 1 month ago
@LibertyDownUnder awe c'maan now, you don't elect a banker because you shopped around. Bankers have legal privilege to issue unsecured credit. The notion of banks as "financial intermediaries" between savers and lenders is a good, honest function. Today they serve as bookies with their only assets being the titles to debt. There's no need for this, especially for gov't to "borrow" money from banks when it can issue sovereign currency.
etzel33 1 month ago
@etzel33, I understand your definition of the problem and agree with most of it, I just don't get what your solution is.
LibertyDownUnder 1 month ago
@LibertyDownUnder lol... I'm still thinking about it too :) I think it has to do with identifying the "demand" for national currency, which is "taxation". If taxes were shifted away from labor and trade, and toward "privilege" like land, severance and pollution taxes, a token currency would work quite well. At least that's the direction I'm going.
etzel33 1 month ago
@etzel33, shifting the tax burden away from the workers usually backfires.
People with no stake in the system simply vote for whoever promises them more freebies - which inevitabley leads to expanding the money supply.
If you have some time, please watch this cartoon: /watch?v=bFxvy9XyUtg
It's cheaper than buying the book, and it has more wisdom than you get in most economics degrees.
It's author is now 80 years old and is in jail for his views.
LibertyDownUnder 1 month ago
@LibertyDownUnder there is always a demand for natural resources and land from which all material production is derived. The intention to shift away from labor is because labor is human beings, and the function of gov't should be to protect people not to enslave them. That's the "moral" reason, but also because demand for token currency won't occur with labor unless you outlaw alternative currencies, which is also invasive. Jefferson, Smith, Paine and George agreed.
etzel33 1 month ago
@etzel33 "demand for token currency won't occur with labor unless you outlaw alternative currencies" ?? Where did you get this?
Gold was the currency of the free market long before there was anyone around to outlaw it. Human being are actually able to function without politicians dictating their daily lives.
LibertyDownUnder 1 month ago
@LibertyDownUnder sure, commodities have been traded since the beginning of time. Gold, of course, can be fractionalized like anything else, but I digress. I'm speaking of national currency, which can be issued as a valueless token like Lincoln's Greenbacks or Colonial Scrip. I have no problem with commodities trading or private currency. I do have a big problem with demanding commodities as taxes whether it's gold, wheat or whatever.
etzel33 1 month ago
@etzel33, the cartoon I sent goes into detail about this. In their cases they use fish as the means of exchange, but it just for illustration of the difference between counterfitting and real work.
LibertyDownUnder 1 month ago
@LibertyDownUnder i watched the video and I'm aware of Irwin Schiff and his decades long struggle with the IRS. Please understand I am no fan of income taxes.
etzel33 1 month ago
@etzel33, the clip is not really a criticism of tax itself, it's more about welfare, minimum wage laws, vote buying, and particularly banking & inflation.
There's simple answers to just about all the problems with the economy in these ideas, and if more people were aware of them - life in general would be a lot easier.
LibertyDownUnder 1 month ago
@LibertyDownUnder well, perhaps we should take this off this poor good person's video comment area and discuss those many topics elsewhere!!! :) enjoyed the banter
etzel33 1 month ago
True, i'm studying economics. The bank do have a fractional reserve but they don't have the money they lend, they *create* it. Let's say 10% as a normal fractional reserve. If the bank have 1 million, they lend 900, 000$, out of that they can lend again 800,100 $ and again with 90% of that amount ect. At the end, the money lended is about 10X the original amount, 10 million have been lend (with interests) with the 1 million the bank had. That means they created 9 million dollars out of nothing.
SoundtrackCenter 2 months ago
It is encouraging to see that even mainstream people are starting to talk about the dangers of fractional-reserve banking.
Austrian economists have been talking about this for over a century...
vindician 2 months ago
only 17k views.. damn.. we'll never get banks on their knees. Only 1 or 2 % of the population actually knows what's going on. Then again, better then zero.
Grcar57 2 months ago
We need a Resource Based Economy. It's the only way out of this mess.
TheDarkFenix 2 months ago
What's the background audio called and where can I get it from?
MalikDon777 2 months ago
The terrorist threat is nothing compared to what the banks can get away with, Bastards!
cashman156 2 months ago
The people who made this video are simply indoctrinated BEYOND stupid. They're so mentally retarded they believe this bullshit. Why not make a video on internal combustion engines? You don't know shit about them either so why not? Why not come up with bullshit videos on every subject? You could be the next Chomsky!
thomaserossi 2 months ago
This is how the modern world works... the only way you'd ever be able to change it is through armed struggle
elitewarrior11 3 months ago
we should start by exposing the media they keep us dumm & dumber!!
Ragzani 4 months ago
That's why we need to bring the gold standard back!
williamb90 4 months ago
@williamb90 Gold will NOT work if fractional reserve still works. Gold worked when a small amount of the money supply was created privately. That is not the case today. What we need is gov't issued debt free money.
whydidigetdeleted 4 months ago
where I can find this kind of musics ?
knightsakabatto 4 months ago
how come they liquidity. Its simple they are lack of customers
ieng182 4 months ago
@ieng182 A lot of the liquidity in todays financial markets is essentially drug money, particularly from the mexican cocaine cartels. When they started witholding cash from Wachovia (the main US laundry), some major banks were forced to borrow from the fed. This lead to the liquidity crunch that caused the financial crisis.
whydidigetdeleted 4 months ago
@whydidigetdeleted money laundry is simple, you got money from drugs, you investment your money to some corporate or build new corporate under their mafia law, then when you got profit you send it to the bank. the major problem bank is they don't have enough money to collect due to pay they organized system, i.e they employment and business taxes to government.
ieng182 4 months ago
This has been flagged as spam show
Obama vs Ron Paul. A MUST SEE video for EVERYBODY on Gold for Money and your vote:
youtube.com/watch?v=ZBd2F_c2fOk
Adriaan1950 4 months ago
Great Soundtrack !!!
Who is it ?
cheshirecat67 4 months ago
If you don't like this systems where the Central Banks creates credit out of nothing through the delegation to private banks, try to buy an house paying with the savings you have under the mattress. After you fail that, try to think if living with financial markets is in principle better than not. Try to study some macro-economics, and try to stop believing in all sort of bullshit fairy tales.
zakmck73 4 months ago
@zakmck73 How about ending the delegation and letting the gov't give the taxpayer the spoils of printing money through lower taxes and direct payment? Net UK money is -£306bn. This means that if all money was used to pay off debt then there would be no money and £306bn of debt.
whydidigetdeleted 4 months ago
@whydidigetdeleted why should distributed money-creation power be better than a central independent authority? Theory and practice show that's not the case. Public debt is a different issue, it won't never be repaid fully, gov spending has an economy stimulation effect, we do need some state in the economy to ensure some justice and the problem is never how much debt but how much growth wrt the gov deficit.
zakmck73 4 months ago
Question is how can we stop it.
I am afraid it is too late.
anthonye1028 5 months ago
Banks create money because they charge an interest cost for each loan. You can't be serious when you think banks can just 'make' money or change some numbers.
If that would be possible, how come so many banks have debt problems and liquidity problems these days???
belgieisdood 5 months ago
@belgieisdood
We are serious - as well as chief economics editor at the Financial Times Martin Wolf, when he says that "The essence of the contemporary monetary system is the creation of money, out of nothing, by private banks' often foolish lending."
"When banks make loans, commercial banks do indeed create much of the money in the economy." Bank of England - you can find the original letter on our website.
PositiveMoneyUK 5 months ago 12
@belgieisdood
When banks make loans, they create new money, but the new money then allows them to make more loans. This process continues and means that the banks will never ‘run out’ of money - they will just keep lending until eventually it gets to the point where the debt burden becomes too high - some people simply can't afford the interest on their debt, and then individuals, households or companies start to default - and the banks suddenly become insolvent on paper.
PositiveMoneyUK 5 months ago 3
@PositiveMoneyUK In theory they can leverage themselves to infinity, assuming there won't be any bank run. Any bank right now collapses if a bank run occurs. Leveraging 1 to 15, 1 to 20 or even 1 to 30, makes the banks bankrupt with the tiniest decay of assets. But banks are not stupid, they charge you fees and maintenance costs, so you always need to have money in your account, if you don't want to get in trouble.
T0B0KKE 2 months ago
@belgieisdood
We've been through over 500 documents from the Bank of England to make absolutely sure that this is how the system works.
PositiveMoneyUK 5 months ago 8
@belgieisdood
Kijk deze docu maar, die legt het je heel makkelijk uit met ondertitels.
wearechange.be/forums/money-debt-nederlands-ondertiteld
man1192803 4 months ago
@belgieisdood take a look at "Crisis by design" / the crime of the canadian banking system or "Money as Debt" or true world history dot info has a good section on banking.
craigbatley 3 months ago
@belgieisdood The banks create money out of nothing by the fractional reserve banking system. Just google "fractional reserve banking" ;-)
dvrsflrs 1 month ago
Comment removed
sbartsa 2 weeks ago
This has been flagged as spam show
@belgieisdood Cause every loan created by every bank is also a loan to the IMF.The banks actualy borrow this money from an international Bank.European rates as far as i know have dropped to 1% now but that includes banks only.It is a bit more complex that it sounds including leverage and a 10%(which NEVER occurs) more deposits than loan to create a new loan and stuff....
sbartsa 2 weeks ago
For as long as the biggest CRIME is legal, how can there be any change and improvement ?
Capitalism is a pyramid scheme THUS a CRIME !
If that won't change, stop nagging about the rest, 'cause they are mere consequences of it.
GanzLONDON 5 months ago
Mr. PositiveMoneyUK sir... Why not to sue the government. The department of justice.
They are not providing JUSTICE !
Why do we have to do their work for them.
They don't give us JUSTICE we sue them and get compensations, and also some politicians in jail !
GanzLONDON 5 months ago
Long-term Elimination and Prevention Technique for Inflation and Unemployment
An intrinsic, limited and scare non-necessity commodity such as gold, silver nor fiat money, as the unit of account, and non-globalization of macroeconomics is to blame for financial crisis. Food and Agriculture, as the unit of account, is the long-term solution for financial crisis, with complement to rules under the Rome Declaration on World Food Security. Do you agree or disagree?
mubaraqtopeakere 5 months ago
Long-term Elimination and Prevention Technique for Inflation and Unemployment
In an ideal situation, where and when Real Gross Domestic Necessity Goods (RGDNG) such as Food and Agriculture is the unit of account, demand and supply of necessity goods (food and agriculture) is directly proportional to Real Gross Domestic Product (GDP). Thus, Real Gross Domestic Necessity Goods (RGDNG) prevents inflation and unemployment.
mubaraqtopeakere 5 months ago
Banks are in the business of lending money.
The interest you pay for borrowing that money is their profit (minus expenses).
You should only borrow money if you expect to make a profit yourself or you can afford to pay the interest payments.
AcePilot101 5 months ago
@AcePilot101
We want banks to be businesses of lending money - lending money that they have to borrow from savers first. However that's not how it works today. A bank doesn't actually need to have any real money before it can make a loan to someone.
When you take out a mortgage from the bank, the bank doesn't take that money from somebody's grandma's life savings. No. Instead, they simply open up a computer, and type some numbers into your account.
PositiveMoneyUK 5 months ago
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zakmck73 3 months ago
@AcePilot101
When you put money in the bank in the present system it becomes the banks' legal property to do as they like with. Regardless of your ethics this money is used to invest in ventures such as arms industry, large scale oil and gas infrastructure that give the banks short-term profits.
PositiveMoneyUK 5 months ago 4
'Death to Capitalism!'
you think what we have is capitalism?
vivisectmu 6 months ago
The Biggest Evil scam ever played on the People of the world....They literally created a Paper God Of Debt & Death and poverty at the expense of the worker
WarDogLRS 6 months ago
Where is Adolf Hitler when you need him?
whiitedog 6 months ago
fantastic video.
hemptime123 6 months ago
Ron Paul.
PHOSPH3R 6 months ago 4
Okay so these are the problems which many of us are aware of, what's the next step?
MyHipHopTunes 7 months ago
@MyHipHopTunes - Join the campaign on the Positive Money website (dot org dot uk) and help spread the awareness. Too many are still unaware of this most fundamental flaw in the system.
PositiveMoneyUK 7 months ago
@MyHipHopTunes AUSTRIAN ECONOMICS!
zacorbett 6 months ago
Great video, thanks. But it begs the question. How do they get away with it? Easy. As of 8 July, 2011 (about a month), this video has 3,464 views. Justin Beiber's 'Baby' video? 581,356,101 (averaging 48,446,341 views per month).
How can the truth compete with Justin Beiber?
We're screwed.
kwyjibo33 7 months ago 28
@kwyjibo33 - there's only one way: we have to get Justin on board with this campaign.
Disturbing times ;)
PositiveMoneyUK 7 months ago 20
justin is a little bitch
evergreenbudah 6 months ago
@PositiveMoneyUK Why are you pushing this garbage? You've got one little fact: the bankers are able to create money out of thin air, and you've based an entire campaign around it? Talk about a gross misalocation of resources!
I'd happy to debate you anyday to prove you're talking out of your hat. Stop with this nonsense and start learning about real economics.
cookdave 2 months ago
@cookdave @thomaserossi Why would you defend the very root of scarcity in our civilization? Cant you realize that our life styles would be way better without the illusion of property, money and what you dare to call "real economics"?
Funny how modern economics is all about waste of resources, scarcity and the self perpetuation of institutions, and has nothing to do with the "managing of the household" concept, you know, the etymological meaning of economy.
We are, indeed, screwed.
lachdanan666 2 months ago
@lachdanan666 Money reformers are all over the place on this, on the one hand they attack banks for creating an abundance of cash 'out of thin air' and on the other they also berate them for causing artificial scarcity. Well they can't be doing both now can they?
The economics of scarcity are bound up with the monopolisation of earth's finite resources, ownership of common property such as land has been distributed by the state to the benefit of the few and detriment of the many.
cookdave 2 months ago
@cookdave We as the human race can solve our problems: is just a matter of decision, but we're too used to the incentive paradigm, so no one gives a damn if they won't profit from it. @TheDarkFenix We do need a RBE, but we need a transition towards it first, and thats where the abolishing of the current banking system and the reform of our values and thinking paradigms should aim: education, health, transport, energy, we need our society to be designed in the direction of what we want and need!
lachdanan666 2 months ago
@lachdanan666 A big problem in both politics and economics is that very few understand the difference between profit and economic rent so they end up attacking the wrong things. Profit is something to be encouraged (even in banking) as it's a sign the business is doing well, economic rent is a simple transfer of wealth and therefor economically harmful.
cookdave 2 months ago
@cookdave Sure thing, but don't you agree that this economic paradigm is somehow obsolete and we need something radically different in order to survive and thrive?
lachdanan666 2 months ago
@kwyjibo33 "they" get away with it because "we" let them.
Be one Be Love
Cekmore 6 months ago
@kwyjibo33 Why do they get away with it ?,because most people scratch their heads and do NOTHING!
Take ACTION and make a complaint to police/serious fraud office-- demand your INTEREST MONEY back - like I have.
It's an EVIL OUTRAGE that's coming to an end.
brettymike 1 month ago
@positivemoneyUK3 i have a copy of this video. If it is ok with you i would like to post this video as well and spread the word
Mali2K11 8 months ago
@Mali2K11 of course, we'd be more than happy for you to do that. Go ahead and spread the word!
PositiveMoneyUK 8 months ago
what about my piggy bank?
sammyrocksu 8 months ago
In the middle ages money lenders [loan sharks] would be run out of villages. Today there are Gods. If MP's are all part of the big scam, how do we stop it? Tony Blair de-regulated the banks and now works for J P Morgan part time for £2 million a year. This is not a back hander, its all out in to the open.
iansummerell 8 months ago
this is wrong. the problem lies within the legislation and the federal reserve that allow the banks to put out 1000% in loans contrast to the capital that they hold! look this information up.
alykkt 8 months ago
A biggest public campaign has started to end fractional reserve banking, look at the POSITIVE MONEY website and support the campaign ...and spread the word.
PositiveMoneyUK 8 months ago
Thanks. I have 2 of my own video's I'm promoting there. I have another American Dream Film at this Link. You can put them on the Video comment there if you want.
watch?v=S2h4GxqdRBg
amy2x 8 months ago
Bitcoin for the win.
Underlore com
Innomen 8 months ago
Those we vote for no longer serve the general public or god!
TheCherylCampbell 8 months ago
Governments should print their own money.
Innoverse 8 months ago
Three dislikes? So at least three bankers have watched this then!
jms1ification 8 months ago 2
Nice remix, I like the creepy music.. Maybe the music should get more positive at the end when you mention the solution? Also I wonder if it needs a clearer call to action if people don't see how we could take their money printing license away.
orangejon 8 months ago
Excellent.
PersianPaladin 8 months ago
Good to see you back... :-)
mickmle1 8 months ago
Sounds exactly like what is happening in the US.
S0ryiu 8 months ago
EXCELLENT WORK, GUYS!
globalbankfraud 8 months ago
this is one of the flaws with economy, another flaw is that it is dependent on that we have an infinite amount of resources..
JollSSteR 8 months ago
because they are greedy bastards that will never have enough of it and how do we prevent them from carrying on like they have?
seonidh 8 months ago
@seonidh we are all greedy though :P
Why dont u give money to the poor?
Because humans suck, we are so fcking selfish and we LOVE blaming everyone els :P
U and i are included in humanity, thats why we are doing the same thing :O
JollSSteR 8 months ago
@JollSSteR to an extent though mate I hardly brought a country to the verge of financial collapse due to toxic loans and lending. Greed is greed but the bankers took it to a whole new level we're the ones suffering while they still get bonuses.
seonidh 8 months ago
because they are greedy bastards that will never have enough of it
seonidh 8 months ago
Really great! May I broadcast this video on public access TV? The people need to see this video!
e33State 9 months ago
@e33State - absolutely, please spread it far and wide!
PositiveMoneyUK 8 months ago
The Internet and Digital age has made the Banksters obsolete as well as politicians.
daviddalbylive 9 months ago 2
Banks don't just lend to private individuals. Banks also lend billions of pounds to the government to facilitate the provision of public services - to deny this in your video is disingenuous. How do you think the government finances the deficit?
Also, you want to prevent banks from creating money out of nothing, whilst at the same time allowing the government to create money out of nothing. It doesn't make sense. No one should be able to create money out of nothing.
Apart from that...
monetaryintelligence 9 months ago
@monetaryintelligence - the government finances it deficit by borrowing mainly from pension funds and insurance companies. Very little of the deficit is financed by borrowing from banks. Have a look at who owns the national debt (in the UK at least) - around 40% is owed to pension funds and insurance companies, 40% to foreigners, and only about 3% is owed to banks.
We want the state (not politicians) to create money at the rate that doesn't cause inflation to accelerate.
bendyson1 9 months ago
@bendyson1 I agree. Nevertheless banks do lend money to the government to help finance government services. However, I should have been more accurate with my first response and for that I apologise.
The thought of the government being able to create money out of nothing scares the life out of me. Can you imagine the cronyism that would result? Having the power to create money out of nothing is an unbelievable privilege; a privilege that no one, in my opinion, should have.
monetaryintelligence 9 months ago
@monetaryintelligence - definitely, there's a risk of cronyism and political abuse if it's not set up just right. Have a look at the work we've done at Positive Money (see Our Proposals > Draft Legislation) into ways of making sure there's as little potential for abuse as possible. It's not perfect but it's many times better than the current system. A truly fixed money supply just isn't politically feasible at the moment, however much more secure it would be.
PositiveMoneyUK 9 months ago
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monetaryintelligence 9 months ago
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monetaryintelligence 9 months ago
@PositiveMoneyUK I have just read the Draft Legislation part on your website (which I should have done before shooting my mouth off!). It made me think about something that I was reading recently on another website. Are you aware of the FOFOA blog? FOFOA's idea is called Freegold and it would fit perfectly with your proposals.
The Freegold proposal would serve as a restraint of the issuance of currency either by private banks or by the government. My personal preference is for competing...
monetaryintelligence 9 months ago
@monetaryintelligence A good guy on YouTube called BrotherJohnF, who's work I respect, seems to think FOFOA is a shill, a clever one but still a shill. I haven't looked into FOFOA as I'd never heard anyone else talk about him until now. I think competing local currencies are a good idea, if that's what you were going to say. Utah has legalised US precious metal coins to be used as money based on the actual metal's value and to be tax exempt. Mexico is thinking of doing the same with silver.
globalbankfraud 8 months ago
@monetaryintelligence you might find BitCoin.org and interesting approach to money.
globalbankfraud 8 months ago
@PositiveMoneyUK ... gold-backed currencies issued by private banks. However, the combination of your proposals with FOFOA's Freegold proposal could be a viable alternative. I would prefer the government to have nothing to do with the issuance of money/currency, but I do realise that politics is the 'art of the possible'.
I would be interested in hearing your views with regards to your proposal working in conjunction with the Freegold proposal.
I admire what you are doing and wish you luck.
monetaryintelligence 9 months ago
@monetaryintelligence What do you mean, "imagine the cronyism"? It's already backed in the cake. Tony Blair leaves office and gets £2 MILLION / annum for being on the board of JP Morgan. Goldman Sachs runs half of Washington; Hank Paulson (ex Goldman CEO) becomes US Treasury Secretary and dishes out all that cash to the Banks and not even just US Banks. Then comes Geithner also from GS. The scam is off the charts!
globalbankfraud 8 months ago