A Simple Explanation of the Economic Crisis in the US

[churupaca1]

of course china will lend money to the u.s. their entire economy is dependent on spending in the u.s. more to the point if people stop buying at wall mart china is fucked.

[Bwahahahahahakangina]

Everyone has to realize that the US economy did not just collasped just because of WALL St. Corporations but what added to the injury was that the US Government got into war in Iraq, Afghanistan and Pakistan. Remember, the U.S. Government was spending 2 Billion dollars a week just to keep U.S. troops in IRAQ and Afghanistan and that went on for several years. Total cost is $3.2 to $4 trillion dollars. That is why the U.S. Gov't has NO MORE MONEY. Think about it.

[mybigtokachi]

You had pretty much all the way up to slide 13. The money supply grows because we have a fractional banking system - banks only have to keep a small percent of the deposits they receive (aka loans from depositors) to saticefy reserve requirements and they lend the balance out to borrowers at a higher interest rate than they pay on the deposits/FED loans. This geometric progression as these deposits cycle thru bank after bank is how the money supply grows. If you end this, what comes next?

[mikelsok]

Ask yourself this; Does the total monetary value of the US SubPrime market = The total debt now faced by whole countries like Greece,+ Spain+ UK+Ireland+UK+Italy?

Something doesn't quite add up does it.? If the Sub Prime fiasco was the start of the worlds economic downfall then it suggests to me that either the banks were lending to the all and sundry when they didn't even have the capital to do so in the first place. Why has not one single Banker been brought to justice yet?

[bteres2]

This guy is a complete moron and should not be listened to.

[88888FORCE]

A Simple Explanation of the Economic Crisis in the US Nov-24-2010--- A simple explanation of the economic crisis in the US, its causes, and potential solutions as well.

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[mlndstream]

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."Thomas Jefferson.

[mlndstream]

"The Federal Reserve, which is a government agency"??? my understanding is that it is a private agency that managed to obtain a monopoly on issuing debt/currency on behalf of the government which is then paid back by the people as income tax?. The difference is important, because private enterprise seeks profit at another party's expense(us, the tax payer), but government agency would act in the interests of the people they serve. So the system is flawed from the start?

[truthadvocate]

It is a myth to assume that private enterprises seek profit at another party's expense. Without government coercion, private enterprises could only generate a profit by serving the interests of their consumers. Making a profit does not require one to hurt others

It's also a myth to think that a government agency would act in the interests of the people they serve. After all, who gave the Federal reserve power over our money supply? The government did! Was it in our best interest? Obviously not

[mlndstream]

Isn't the the idea of making a profit,to get more back than you gave?,but I'm sure there are private enterprises out there who intend on creating'win-win'situations,bu­t at the end of the day the idea is to win,and that means someones losing somewhere along the line whether they realize it or not imo.And I agree governments don't primarily act in the interests of the people,but their game is to profit while convincingly tricking the tax payer into believing they are,while prioritizing itself?

[mlndstream]

One example that springs to mind of the concept of 'profiting',is Warren Buffett once saying that the stock market is the slow process of money moving from the pockets of amateurs into the pockets of professionals,which of course is a game where most people lose most of the time

[truthadvocate]

The only way to win consistently at another's expense is to use coercion (ie robbing or conning people) These are criminal acts committed by government & private entities & should be punished

Large banks use coercion through the government to screw tax payers & fix the system. Without the State, they could not get away with it. They would be punished, not rewarded.

The people who lose big in the stock market are generally using it like a casino. It's their fault for gambling & taking the risk

[mlndstream]

Yes, nicely put, although at this stage I have no problem with people like Warren Buffett getting so rich, everyone knows the risks of investing in the stock market and everyone knows they could lose their money so it is consensual, Warren Buffett wins because he simply understands that if you buy the stocks (be greedy) of quality companies while the most of the rest of the herd is selling (being fearful)and therefore creating undervalued stocks, he knows he will win more than he loses

[mlndstream]

My problem is more with governments who profit from taxation and control of the masses, while also inflating the paper/digital money supply and so devaluing the money in peoples pockets, effectively robbing them of their purchasing power without them knowing, and then you have the Central banks as accomplices charging interest via income tax on paper they counterfeited in the first place...I'm starting to have more respect for 'The Mob', they taxed less and protected more?

[danbusinessman]

The people that dont understand this are the same people that dont understand that 9/11 was an inside job. Ignorance and denial.

[tothemax01]

what does he mean all money comes from debt? wtf my money comes from going to work, whats wrong with me?

[YvonJrDenis]

We know, the bankers of the federal reserve control and own the US monetary system and they are located in Washington DC. OK! If Americans don't own "their" money system, and Washington DC (District of Columbia) "not to confuse with the state of Washington" is a country within the USA ! My question is... Who own WDC? There's 3 of these country within a country in the world. WDC, City of London and the Vatican. Seems like the world power freaks control US.

[AsiF5566]

Those 3 r Illuminati Bases.

[w32deadcode]

Get your glasses fixed then I will listen to your explanation.

[dave777blaster]

Simpletons

[mlndstream]

Ad hominem

[HaeJude]

Interesting and insightful. I also think that the Sarbanes-Oxley Act was a major contributor to the meltdown.

[apsychoslime]

This act was put into place to increase investor confidence, and to prevent widespread corporate fraud.  It was initiated after the Enron debacle.

A lack of regulation and oversight was the primary cause, or decreased interest rates by Greenspan

[Mike19sf]

outstanding explanation!

[CurrencyCafe]

You dont have to know what is going on or wait for a recovery, the largest banks in the world are open 24/5 !!!! See The Currency Cafe

[davidluk8]

Money comes to existence when banks make loans.

Search "Money as Debt"

[averageworkinggal]

The housing bubble was fueled not by debt but by savings from abroad that flooded into the unregulated banking system of I-Banks that reached the mortgage market through the secondary market of securitization.

[investmentspecialist]

Nice job Dave!

[snowtrot]

The international private bankers have power beyond out comprehension.

[ChromeClapper]

The federal reserve needs to go

[kylemacrodot]

Nice video though.

[kylemacrodot]

The federal reserve is not a "government agency". Its a private corporation.

[job187]

It's a government monopoly.

[erdal0]

how can it be a government monopoly when its a private corporation

[BillyBobTS]

It's privately owned buddy by the rothschilds and many other bigwigs, That money being printed is not by out government and is being LOANED at interest to the US. If it was owned by the government why would they loan themselves money at interest?. and then make the taxpayers pay for it?.

[job187]

Privately owned enterprises and government reinforced monopoly isn't two incompatible fenomenon.

A business can be privately owned and have the government to back its monopoly by law. It's not a technical monopoly, it's not a business with extensive monopoly power gained in a competitive market... it's a government monopoly.

[BillyBobTS]

blah blah blah the point is the government only has a 10% stake in the FR, Not much power in the choices that are made.

[jrccdhetlr1]

agreed.