INFLATION - Discussion of fractional reserve banking and its effect on inflation

[loai050]

Wepollock has a good clip today on the Fed and  their re repo statement.

[thane17]

Hey! I'm the guy you sent over here from endlessmountain's page. This was a really good video!! It helped me visualize what exactly happens with the money multiplying over and over with the fractional Reserve Banking.

With the visual you provided I can more easily see now how an increase in the velocity of money could cause hyperinflation over night as well.

Thanks again

[networkingman]

You are very welcome! Glad it helped out!

[tararisser]

great video!! thanks!

[YourFuture2012]

Zeitgeist 1 and 2 explanes these aspects of using the economy to enslave people.

Sucking the energy of us like vampires.

Using scarcity to let us work so they can feed of our energy.

It's like working on the farm with a whip only this time we get drugs like prostitutes get ,so we become dependent on the government to help us.

We are getting indoctrinated to eat grass only.

I want to be free and don't want to be a sheep!!

I hate softdrugs

[networkingman]

Thanks for the kind words everyone! I know most of you know this anyway, but it's so important everyone realize that the monetary model we have today will only cause endless inflation forever.

[profriday]

Thanks for the teaching.

[bertly71]

That is the best explanation I have ever heard. Thanks.

[1217jesss]

awsome job explaining this subject which people urgently and desperately need more inderstanding of.

[NovusChaoMundi]

lemonade Lol

[NovusChaoMundi]

Aren't you glad we put all the smart people in charge? Government couldn't run a leomonade stand without screwing things up.

[SpringboardShop]

Thanks.

Are you sure that banks still need to retain 10%?

Isn't it less than 10% now?

[networkingman]

You're right it is less than 10%, I just used 10% so I can keep my math straight.

[MoneyBags73]

Good job explaining what is going on. I am currently planning for massive inflation that I am certain will start to show up probably starting next summer. Everyone needs to look into silver. In addition, I just picked up Ron Paul's new book today "End The Fed." I suggest everyone take a look at it.

[ang60]

Great explanation.

[optiontrader11]

We live interesting times we will get commodity based inflation, but at the same time as individuals and businesses default or pay down their debt we also get deflation. We are a debt based economy and unless we have credit expansion, we have a problem Houston. Also at this juncture increasing debt is creating a smaller and smaller increase in GDP. Banks are not lending, consumers/business are not borrowing which means no credit expansion. Government is trying to fill the gaps.=we are screwed.

[1pigslayer]

great work thanks for the input

[Howouldado]

Good job!

[Suchorski321]

Excellant Video! Watching all this stuff on you tube I have been trying to understand how the printing of money would raise prices on goods and you explained it very well.

[bjmccullough]

networkman...i am a big fan..great.informative. i new this in my head already but your visual presentation really helped me get this all in a clearer fashion..thanks bruce, tokyo

[YourFuture2012]

WE ARE SLAVES!!!!

[networkingman]

That about sums up my video!

[TilveranNavarre]

So how long is mark-to-model going to keep reality at bay?

[networkingman]

FASB is going back to mark to market in January. That could be quite interesting to say the least.

[acubird]

Great video, clear and helpful, thank you

[TracyM1974]

Great job : )

[drewry]

Thank you for the video. That helped explain a good bit of questions I had. What is going on with derivatives lately? Are they still screwing everything up?

[networkingman]

Derivatives are the 8000000000 lb elephant in the room no one is talking about. So yes, we are still screwed!

[MengersDisciple]

Good overview. However, as you define inflation as the growth in money supply and credit, resulting in price increases, deflation is the destruction in money supply and credit, resulting due to this destruction.

Check out my video response to see G Edward Griffin explain the banking cartel and fractional reserve in detail.

[networkingman]

Yes thanks for the video, always enjoy Griffin's work!

[slymartins]

Great, thanks!

[Not2True]

Nice Update. I currently am investing in foreign currency. I am in the Aussy, Norway Krone, New Zealand and Swiss. Do you think this is an effective strategy?

I have also purchased silver, Gold fund. Some of my retirement is based on Tbills should I bail out of Tbills? What should I go too?

[networkingman]

Personally, I'd get out of Tbills and take as much delivery as I could with gold. Just my two cents. I think it's great to be invested in foreign currency, even with today's dollar rally, we all know it's in trouble fundamentally.

[tradergee1]

Real good vid. Have you ever considered that the interest we pay on debt also has to be borrowed  from the creditor ?

[networkingman]

Thanks and yes you are right, we as a nation borrow to pay interest and principal. This can't go on forever!