The fact that modern money is debt, which it is, can't debunked with "Debt is owing money. Money can't be owing itself. Come on..."
Money is monetized debt. If every debt was to be paid back there wouldn't be one dollar in circulation. It would all come back to the banks. Sure they'd have the "money". But that money only represents the debt that was owed to them. So... Money isn't debt - but it surely represents it.
Sure, the mechanism that creates modern deposit money is the issuing of debt, but to say that it 'is' debt is a category error. The money created doesn't 'represent' the debt, it's exactly as if the bank were lending money it already had, except new money is created for the purpose.
And it's trivially true that if every loan were repaid that the money supply would collapse, but why talk about things that can't happen, even in principle?
@JmkLcAeJsm "It's exactly as if the bank were lending money it already had, except new money is created for the purpose". Well, I can be a management genius (which is what banks look like, as they seem to make good profits every year) if I can charge interest on money that i "created" - upon demand of credit. I'm sorry. The whole global banking system is a cruel joke.
And... the money supply can't collapse (according to you). But the system itself can. And it is.
@JmkLcAeJsm Yes... Another egotistical selfish market promoter. What about the billion people starving on this planet while "we" rip the earth of it's resources for the sake of "economic growth". At a rate that not even she, our Mother, can replenish. You will never get it, I'm afraid.
I'm a socialist, and I help run an environmental group where I live. See my video 'in defense of socialism'. My assertion that capital markets have made us rich is based on my masters thesis in economic history, which was based on Hoon Chang's work but tying it in with the role of capital markets in allowing western Europe dominance over international trade in the late medieval period.
@JmkLcAeJsm Well... Maybe there's hope for you after all :)
The problem I have with the economic system (which is not economizing anything by the way) is that it pressuposes people are inherently or "naturaly" selfish and act only having their self-interest at heart. This is, for me, the most grotesque reduction of the human condition. We shouldn't expect, when the whole socio-economic structure rewards this kind of behaviour, nothing less than selfish and egotistical people.
The economic system doesn't presuppose anything, it is what it is. Our analysis of it often does assume these things, and our analysis is often flawed.
Much wrong headed policy is made on the basis of economic theory which has long been discredited, and I used to be involved in changing that. I sold out because the price was too good, but hey ho, no one's perfect.
The point is though, conspiratorial and fanciful ideas about money don't help us. Let's deal with reality.
@The34gl3, further thoughts. What is it exactly that you're cross about? Would you prefer a system where banks are not allowed to create deposit money? What would be the advantages of such a system?
@JmkLcAeJsm I don't agree when you say it doesn't presuppose. The very structure of the global economic is inherently flawed.
-We create money out of debt and charge interest on that money/debt that does not exist in the money supply. The existing money plus the interest is always outstanding.
-We base our whole economic model on "growth". That's not even remotely "economical" and also presents the human race with an irreconciable attempt: To grow forever in a finite planet.
Point one, what do you mean? Is debt always a bad thing? If so why? The 'money supply' is determined by the creation of deposit money, what is it you mean by 'does not exist in the money supply'? Clarify your thinking on this!
Point 2 I agree, I've explicitly stated that I don't think economic growth is a good thing to target in another video.
@JmkLcAeJsm Of course debt is always a bad thing. Debt means servitude. A person in debt is always easy to coherce into lower class jobs. A country in debt is a country in servitude. How do you think the American Empire was built from the 50s to now? Economically. The military only goes in when the "trade agreements" fail. I'd tell you to look at "Confessions of an Economic Hitman" by John Perkins.
The money supply is determined by the creation of deposit money but the interest is not available
Ok, so you'd argue that the US and UK are in 'servitude'? Would you argue that someone who's borrowed money to buy a house is in a more or less secure position than someone renting?
Borrowing money is the way that poor people become rich, it's the most fundamentally egalitarian thing, to allow people without wealth the same advantages that people with wealth have.
@JmkLcAeJsm What I'm trying to say is that MONEY, in it's holistic entity, is the root problem. And the argument "it's just the way it is" doesn't fly for me. "Borrowing money is the way that poor people become rich, it's the most fundamentally egalitarian thing"
Well... your mind lock is impressive here. The ONLY way someone can be rich is to have someone poorer next to him. So what do you mean by "egalitarian"? Money is inherently, this is very clear to me, unegalitarian.
Well sort of. Holding income constant. And assuming no hoarding, intertemporal arbitrage or any of that stuff. And no, 'they' definitely don't burn money. Apart from anything else the stock of burnable cash is miniscule compared to what's out there, you'd do a lot better burning computer servers ;)
I really hope this girl is just her parents puppet, cause if not she has messed up reasoning, stating that the Dutch have an unjust law, does not justify our unjust laws against euthanasia, euthanasia has always been for mercy by definition, & the primary argument for euthanasia isn't death with dignity, it's self determination, plan & simple I have the natural right to end my own life, to state I don't is to state I do not have the right of self determination, to state that I am a slave.
IF anyone really wants to know about money, please check out the videos from the Byrondalechannel. He is a monetary scientist who knows alot more than a typical University graduate Weeny about money and economics.
constrained Optimisation?? LOL! That sounds more like constraine, shit like when you are so full of shit that nothing comes out. Haha! But seriously, That sounds like some complicated Linear Mathematical computational mumbo jumbo make you look smart, raise your ego non life applicapable rubbish. Try to apply this Mathematician stuff to real life situations. I question why you bring up this topic when it has nothing to do with the issue at hand?
Economics is composed of that 'mumbo jumbo' so it is precisely the issue at hand. You say he knows more about money, but if he can't F-test he won't be able to do reliable regressions to test how money supply growth actually affects things.
Economics isn't just making unjustifiable pronouncements. It's hard statistical graft, modelling and testing.
The institutionalized Video presenter here would not get the Zeitgeist video which is 100% verifiably true as far as the Federal Reserve portion of it goes. We are no doubt controled by private bankers through the Federal Reserve system, that sets interest rates to manipulate the economy along with other centralized banks. The biggest question I have is what the hell is a central bank doing influencing a so called free market capitalist system? What a scam we operate under like minions.
You can be assured that the video presenter would call this all hogwash, conspiracy nut stuff. The truth is, Truth is sometimes stranger than fiction, and just as unbelievable. I wish more people would do there research. the Fed Debt based, promise to pay monetary system is a charade. I can't wait until the day we don't have goddam central banks controling and influencing everyone. The IMF is another sham. They like to make loans taht can't be paid to 3rd world contries so they can control them
It was also fascinating for me, as I've heard the "money is just debt" discussion too many times, and I'm glad to hear an economist straighten that one out.
Hey I got a question for you Mr. British Educated Person.Did you ever wonder how all this money(national debt) is suppose to ever be paid back to the borrowers when the majority of this newly created credit(money or better yet debt) is not correspondingly created with the interest to pay it off?How can you pay back all this debt that is compounded with interest when the interest portion of the money supply is not created at the same time.I believe you can't. So the rich get richer & poor poorer.
Sorry I didn't mean to sound rude, you just reminded me(assuming your the voice behind this video) of my snobbish know it all (so he thought)economics professor. What I was getting at about interest and the poor getting.... is the current set up of our monetary sytem/central banking through the practice of Fractional Reserve banking. Are you familiar with Fractional Reserve Banking and its effects on inflation in the economy. Funny thing is this was never taught at my University.
In answer to your response at around 2 min mark, by the fed doubling the money supply, all else being equal, it won't mean sweet fuck all to the poor retired people who have worked all their lives to save their money to live off in their retirement. The effect of doubling the money supply is that now it takes twice as much$'s to buy something cause like you said prices rise. So you leaving out the other half truth that the middle class and poor will suffer big time. Time to educate yourself!!
As for my other half truth comment, I didn't mean it that way. What I meant was now you know the rest of the truth making up the whole truth. If you want to appear to be educated on here please make sure you inform all your viewers of the whole truth and nothing but the truth. I hate your half truth comment cause it leaves out a very important issue, inflation erodes the dollars of those who save money, but doesnt do anything to the elite class who control and issue most of the $'s or credit.
Elite classes? Evidence please that the rich 'control the supply of credit', that ain't how it works. Inflation gets everyone, the only difference is that the rich tend to hold more of their wealth in assets and thus don't suffer as badly proportionately.
I have spent the last 20 years of my life investigating central banks like the BIS, IMF, bank of England, and Federal reserve, which except for the bank of England(50% government and 50% private owned) are 100% owned by member banks which are private corporations which are owned by surprise Rich people. He who owns the gold unmistakenly makes the rules. Its the way it has been for eons. You just got to do more homework instead of believing mainstream crap(which is supported by elites).
But what rules do they make? they don't set interest rates, which are determined by the demand and supply of credit. They get a return on the assets they hold, but why shouldn't they?
Hey man you sound intelligent enough and open minded enough to find more answers to your great questions about the money/credit system. I suggest you and your viewers check out the video series on youtube called money as debt. It comes in 5 parts. This is very well done explained in laymans terms presentation on the history of money and banking. You won't regret viewing it. Its is so profound and 100% verifiably true!! I am what you call a truth seeker and I suspect you may be too. Enjoy!
For fecks sake, I am a university reader in economics, I hold three degrees in the subject. It is what I do for a living. The so called 'great questions' that you speak of pale into insignificance compared with the real unanswered questions in economics, and I'm afraid I have to spend time on those. Sorry, but this sort of feeble minded conjecture doesn't interest me.
Keep in mind you may hold 3 degrees( i only hold one measily one in commerce) but all well roundedness has 360 degrees. School teaches theories, Life teaches practicality.Its time you open up your blinders and stop being so tunnel vision.There is color in the world, not everthing is so black and white. Those who view life in such a narrow bandwidth are missing out. I wish you would not such a pompous and get off your highhorse. R u sure your not my prof?
Well, the thing about economics is that is is no sure science, otherwise, Economists might have been doing a better job rather than making a mess of things. The london school of economics has a piss poor record. I think weather forecasting may be more reliable than economic forecasting. Only my opinion.
By the way, I hope you don't suspect I am one of those typical conspiracy nuts that are out there. Most of those theories are so far fetched! Please do yourself a favour and view "money as debt part 1 of 5 etc... and view with an open, rational, and intelligent mind. This is an exponential versus the typical linear explanation on not only money but other economic issues which are addressed in that videso series.I look forward to your feedback on this. sorry i sounded rude, I just get frustrated!
You are correct that the financial savvy and literate that are not too greedy and are concervative will tend to do well when they own true assets like gold, land on a good location etc.... The problem is most of the world isn't that savvy. I am glad that I am savvy and am independently wealthy but I am no elitist. Most people get their education from magazines, television, and mainstream educational institutions which dont teach shit about financial literacy but how to be a consumer.
Your conception of deflation is severely lacking, although I appreciate the video overall - Historical standing on free-price systems shows clearly that any decrease in price tends to increase demand. The problem is fundamentally that I think you may be missing (or glossed over for time) is that the change in value of money doesn't happen immediately, and a gradual sustained deflation would be immensely preferable to what we're experiencing right now. Huge jumps up or down are disruptive.
Run me through that evidence briefly, I'm not familiar with it. That's not to be belligerent, I'm just not a macroeconomic historian!
And there is of course a subtle distinction between a fall in prices and deflation. The latter implies an expectations component, which is what does the damage, the former does not.
actually Fountainhead83 hit the nail on the head with that one, that's exactly what i was thinking. somehow my comment wasn't posted... there are people who will enjoy spending the moneys from the printing press before price adjustments arrive and those people will have an unfair advantage over people who saves up their money and have their money lose value.
I studied economics for two years so I have a piece of knowledge here and there. I understand the video quite clearly but some people may find wording difficult. I mean this video is aimed at people who don't know much economics right? Anyway good video, economics can be very interesting and mind opening. I'm looking forward to new video!
you did explain about the gold but the point i was trying to make is that the first people who get the newly printed money is the ones that benefit and escape inflation because the marked doesn't update instantly after new money. i'm also under the impression that the dollar is supposedly artificially high value?
I like the video, but when you ended our discussion last time i asked if the money policy that is in place now encourage developed countries to have less industry and rather move money around rather than selling stuff. (i belive the united states is at a 700 billion negative each year in the import versus export balance)
The capital account is the converse of the current account. Every $ of foreign goods the UK buys over and above our exports has to be paid for somehow.
This is done by selling assets (Shares, Bonds, Factories etc) to foreigners. This is the mechanism that equilibrates the demand for pounds with the supply of pounds.
let me see if i got that... they buy bonds so that the exports (i.e cheap crap) they sell to America which is paid with dollars... is worth more globally? they spend money so that the money they receive is of higher value? Would they have to sell some bonds back to actually make real profit out of that and why can't they just change to their own currency rather than the dollar?
Because they are profiting from the bonds. Bonds have a yield as you know, so it makes sense for them to keep investing as long as the US can pay out.
But I think they think US govt. paper is too risky now, so they've stopped buying.
You're wrong to apologize for "wasting time on a boring topic" or whatever it is you said at the end.
The conciseness of your explanations and the speed with which you stated them was more than enough to hold my interest. I can honestly say that I found this video fascinating.
As a person with ADD, I must thank you for your agreeable style.
When I worked in health policy research, I often heard the phrase, "You can't put a dollar value on a human life!" Well... Yes, you can -- and you MUST.
Actually, you put a dollar value on a year of life (the "person-year"), and you discount the value of person-years in the future. The logic is the same described in this vid! Person-years are a commodity subject to interest and discounting just like bananas and haircuts.
I usually find your videos some of the most informative on YouTube, but they can be very brisk so that following your line of thought can be tricky. While I already know everything you have presented in this video, I think it may have gone too fast; although, I admit this is not the best place for an introduction to macroeconomics. Besides your volume being too low, keep up the good fight against ignorance and illogicality!
amazing voice!!! :D
TheTrueEconomist 8 months ago
The fact that modern money is debt, which it is, can't debunked with "Debt is owing money. Money can't be owing itself. Come on..."
Money is monetized debt. If every debt was to be paid back there wouldn't be one dollar in circulation. It would all come back to the banks. Sure they'd have the "money". But that money only represents the debt that was owed to them. So... Money isn't debt - but it surely represents it.
The34gl3 9 months ago
Sure, the mechanism that creates modern deposit money is the issuing of debt, but to say that it 'is' debt is a category error. The money created doesn't 'represent' the debt, it's exactly as if the bank were lending money it already had, except new money is created for the purpose.
And it's trivially true that if every loan were repaid that the money supply would collapse, but why talk about things that can't happen, even in principle?
JmkLcAeJsm 9 months ago
@JmkLcAeJsm "It's exactly as if the bank were lending money it already had, except new money is created for the purpose". Well, I can be a management genius (which is what banks look like, as they seem to make good profits every year) if I can charge interest on money that i "created" - upon demand of credit. I'm sorry. The whole global banking system is a cruel joke.
And... the money supply can't collapse (according to you). But the system itself can. And it is.
The34gl3 9 months ago
It's why we're prosperous, capital markets are why we're rich. If you don't like it, sorry.
JmkLcAeJsm 9 months ago
@JmkLcAeJsm Yes... Another egotistical selfish market promoter. What about the billion people starving on this planet while "we" rip the earth of it's resources for the sake of "economic growth". At a rate that not even she, our Mother, can replenish. You will never get it, I'm afraid.
The34gl3 9 months ago
I'm a socialist, and I help run an environmental group where I live. See my video 'in defense of socialism'. My assertion that capital markets have made us rich is based on my masters thesis in economic history, which was based on Hoon Chang's work but tying it in with the role of capital markets in allowing western Europe dominance over international trade in the late medieval period.
JmkLcAeJsm 9 months ago
@JmkLcAeJsm Well... Maybe there's hope for you after all :)
The problem I have with the economic system (which is not economizing anything by the way) is that it pressuposes people are inherently or "naturaly" selfish and act only having their self-interest at heart. This is, for me, the most grotesque reduction of the human condition. We shouldn't expect, when the whole socio-economic structure rewards this kind of behaviour, nothing less than selfish and egotistical people.
The34gl3 9 months ago
The economic system doesn't presuppose anything, it is what it is. Our analysis of it often does assume these things, and our analysis is often flawed.
Much wrong headed policy is made on the basis of economic theory which has long been discredited, and I used to be involved in changing that. I sold out because the price was too good, but hey ho, no one's perfect.
The point is though, conspiratorial and fanciful ideas about money don't help us. Let's deal with reality.
JmkLcAeJsm 9 months ago
@The34gl3, further thoughts. What is it exactly that you're cross about? Would you prefer a system where banks are not allowed to create deposit money? What would be the advantages of such a system?
JmkLcAeJsm 9 months ago
@JmkLcAeJsm I don't agree when you say it doesn't presuppose. The very structure of the global economic is inherently flawed.
-We create money out of debt and charge interest on that money/debt that does not exist in the money supply. The existing money plus the interest is always outstanding.
-We base our whole economic model on "growth". That's not even remotely "economical" and also presents the human race with an irreconciable attempt: To grow forever in a finite planet.
-
The34gl3 9 months ago
Point one, what do you mean? Is debt always a bad thing? If so why? The 'money supply' is determined by the creation of deposit money, what is it you mean by 'does not exist in the money supply'? Clarify your thinking on this!
Point 2 I agree, I've explicitly stated that I don't think economic growth is a good thing to target in another video.
JmkLcAeJsm 9 months ago
@JmkLcAeJsm Of course debt is always a bad thing. Debt means servitude. A person in debt is always easy to coherce into lower class jobs. A country in debt is a country in servitude. How do you think the American Empire was built from the 50s to now? Economically. The military only goes in when the "trade agreements" fail. I'd tell you to look at "Confessions of an Economic Hitman" by John Perkins.
The money supply is determined by the creation of deposit money but the interest is not available
The34gl3 9 months ago
Ok, so you'd argue that the US and UK are in 'servitude'? Would you argue that someone who's borrowed money to buy a house is in a more or less secure position than someone renting?
Borrowing money is the way that poor people become rich, it's the most fundamentally egalitarian thing, to allow people without wealth the same advantages that people with wealth have.
JmkLcAeJsm 9 months ago
@JmkLcAeJsm What I'm trying to say is that MONEY, in it's holistic entity, is the root problem. And the argument "it's just the way it is" doesn't fly for me. "Borrowing money is the way that poor people become rich, it's the most fundamentally egalitarian thing"
Well... your mind lock is impressive here. The ONLY way someone can be rich is to have someone poorer next to him. So what do you mean by "egalitarian"? Money is inherently, this is very clear to me, unegalitarian.
The34gl3 9 months ago
@JmkLcAeJsm I think John Mcmurtry puts it much better than me. It's a one and a half minute clip so do take a watch.
/watch?v=44lN0x91jMY
The34gl3 9 months ago
That video is, no joke, one of the dumbest things I have ever, ever seen. I have made my position clear on a comment on said video.
JmkLcAeJsm 9 months ago
Comment removed
The34gl3 9 months ago
the more money they print the less its worth, i heard they burn money every day so it does not lose vaule
bellyzbad 11 months ago
Nononononono....
Well sort of. Holding income constant. And assuming no hoarding, intertemporal arbitrage or any of that stuff. And no, 'they' definitely don't burn money. Apart from anything else the stock of burnable cash is miniscule compared to what's out there, you'd do a lot better burning computer servers ;)
JmkLcAeJsm 11 months ago
I really hope this girl is just her parents puppet, cause if not she has messed up reasoning, stating that the Dutch have an unjust law, does not justify our unjust laws against euthanasia, euthanasia has always been for mercy by definition, & the primary argument for euthanasia isn't death with dignity, it's self determination, plan & simple I have the natural right to end my own life, to state I don't is to state I do not have the right of self determination, to state that I am a slave.
yellowkrux 1 year ago
@yellowkrux Shit wrong vid, how did I manage that.
yellowkrux 1 year ago
Anothergood introduction to economic issues is "Making Money" by Terry Pratchett
lllorenz 1 year ago
sorry I meant to say: "thebyrondalechannel"
truthconquersall1 2 years ago
IF anyone really wants to know about money, please check out the videos from the Byrondalechannel. He is a monetary scientist who knows alot more than a typical University graduate Weeny about money and economics.
truthconquersall1 2 years ago
Monetary scientist...
Lol.
JmkLcAeJsm 2 years ago
Can he do constrained optimisation? How about F-testing of regression coefficients?
And that's 1st year maths where I studied...
JmkLcAeJsm 2 years ago
constrained Optimisation?? LOL! That sounds more like constraine, shit like when you are so full of shit that nothing comes out. Haha! But seriously, That sounds like some complicated Linear Mathematical computational mumbo jumbo make you look smart, raise your ego non life applicapable rubbish. Try to apply this Mathematician stuff to real life situations. I question why you bring up this topic when it has nothing to do with the issue at hand?
truthconquersall1 2 years ago
Economics is composed of that 'mumbo jumbo' so it is precisely the issue at hand. You say he knows more about money, but if he can't F-test he won't be able to do reliable regressions to test how money supply growth actually affects things.
Economics isn't just making unjustifiable pronouncements. It's hard statistical graft, modelling and testing.
JmkLcAeJsm 2 years ago
what do you make of zeitgeist addendum ?
duftube001 2 years ago
The institutionalized Video presenter here would not get the Zeitgeist video which is 100% verifiably true as far as the Federal Reserve portion of it goes. We are no doubt controled by private bankers through the Federal Reserve system, that sets interest rates to manipulate the economy along with other centralized banks. The biggest question I have is what the hell is a central bank doing influencing a so called free market capitalist system? What a scam we operate under like minions.
truthconquersall1 2 years ago
You can be assured that the video presenter would call this all hogwash, conspiracy nut stuff. The truth is, Truth is sometimes stranger than fiction, and just as unbelievable. I wish more people would do there research. the Fed Debt based, promise to pay monetary system is a charade. I can't wait until the day we don't have goddam central banks controling and influencing everyone. The IMF is another sham. They like to make loans taht can't be paid to 3rd world contries so they can control them
truthconquersall1 2 years ago
Correction: I meant lenders, not borrowers.
charronfamilyconnect 2 years ago
It's very interesting, and I wish there were more than just the handful of people on YT posting about it.
maverik713 2 years ago
It was also fascinating for me, as I've heard the "money is just debt" discussion too many times, and I'm glad to hear an economist straighten that one out.
AgnosticNews 2 years ago
Well, technically money IS "debt"; however, the way it's interpreted in some videos floating around the internet, is confusing
neokn3 2 years ago
It's not!!!! Jebus christ almighty... Money is a commodity. Gold is not debt is it?
JmkLcAeJsm 2 years ago
Hey I got a question for you Mr. British Educated Person.Did you ever wonder how all this money(national debt) is suppose to ever be paid back to the borrowers when the majority of this newly created credit(money or better yet debt) is not correspondingly created with the interest to pay it off?How can you pay back all this debt that is compounded with interest when the interest portion of the money supply is not created at the same time.I believe you can't. So the rich get richer & poor poorer.
charronfamilyconnect 2 years ago
Nor am I saying sustained government deficits are a good idea.
However, whats your linkage with poor getting poorer and paying the interest on debt?
The bullshit about 'newly created credit money' I'll just ignore for now, just watch the damn video.
JmkLcAeJsm 2 years ago
Sorry I didn't mean to sound rude, you just reminded me(assuming your the voice behind this video) of my snobbish know it all (so he thought)economics professor. What I was getting at about interest and the poor getting.... is the current set up of our monetary sytem/central banking through the practice of Fractional Reserve banking. Are you familiar with Fractional Reserve Banking and its effects on inflation in the economy. Funny thing is this was never taught at my University.
charronfamilyconnect 2 years ago
In answer to your response at around 2 min mark, by the fed doubling the money supply, all else being equal, it won't mean sweet fuck all to the poor retired people who have worked all their lives to save their money to live off in their retirement. The effect of doubling the money supply is that now it takes twice as much$'s to buy something cause like you said prices rise. So you leaving out the other half truth that the middle class and poor will suffer big time. Time to educate yourself!!
charronfamilyconnect 2 years ago
But that was exactly my point! Increasing the money supply does nothing in theory except erode savings.
JmkLcAeJsm 2 years ago
As for my other half truth comment, I didn't mean it that way. What I meant was now you know the rest of the truth making up the whole truth. If you want to appear to be educated on here please make sure you inform all your viewers of the whole truth and nothing but the truth. I hate your half truth comment cause it leaves out a very important issue, inflation erodes the dollars of those who save money, but doesnt do anything to the elite class who control and issue most of the $'s or credit.
charronfamilyconnect 2 years ago
Elite classes? Evidence please that the rich 'control the supply of credit', that ain't how it works. Inflation gets everyone, the only difference is that the rich tend to hold more of their wealth in assets and thus don't suffer as badly proportionately.
JmkLcAeJsm 2 years ago
I have spent the last 20 years of my life investigating central banks like the BIS, IMF, bank of England, and Federal reserve, which except for the bank of England(50% government and 50% private owned) are 100% owned by member banks which are private corporations which are owned by surprise Rich people. He who owns the gold unmistakenly makes the rules. Its the way it has been for eons. You just got to do more homework instead of believing mainstream crap(which is supported by elites).
charronfamilyconnect 2 years ago
But what rules do they make? they don't set interest rates, which are determined by the demand and supply of credit. They get a return on the assets they hold, but why shouldn't they?
JmkLcAeJsm 2 years ago
Hey man you sound intelligent enough and open minded enough to find more answers to your great questions about the money/credit system. I suggest you and your viewers check out the video series on youtube called money as debt. It comes in 5 parts. This is very well done explained in laymans terms presentation on the history of money and banking. You won't regret viewing it. Its is so profound and 100% verifiably true!! I am what you call a truth seeker and I suspect you may be too. Enjoy!
charronfamilyconnect 2 years ago
For fecks sake, I am a university reader in economics, I hold three degrees in the subject. It is what I do for a living. The so called 'great questions' that you speak of pale into insignificance compared with the real unanswered questions in economics, and I'm afraid I have to spend time on those. Sorry, but this sort of feeble minded conjecture doesn't interest me.
JmkLcAeJsm 2 years ago
"Too bad your limited by your 3 degrees"
Keep in mind you may hold 3 degrees( i only hold one measily one in commerce) but all well roundedness has 360 degrees. School teaches theories, Life teaches practicality.Its time you open up your blinders and stop being so tunnel vision.There is color in the world, not everthing is so black and white. Those who view life in such a narrow bandwidth are missing out. I wish you would not such a pompous and get off your highhorse. R u sure your not my prof?
charronfamilyconnect 2 years ago
Life doesn't teach macroeconomics.
JmkLcAeJsm 2 years ago
Well, the thing about economics is that is is no sure science, otherwise, Economists might have been doing a better job rather than making a mess of things. The london school of economics has a piss poor record. I think weather forecasting may be more reliable than economic forecasting. Only my opinion.
charronfamilyconnect 2 years ago
Probably. But forecasting is for saps and attention seekers.
JmkLcAeJsm 2 years ago
By the way, I hope you don't suspect I am one of those typical conspiracy nuts that are out there. Most of those theories are so far fetched! Please do yourself a favour and view "money as debt part 1 of 5 etc... and view with an open, rational, and intelligent mind. This is an exponential versus the typical linear explanation on not only money but other economic issues which are addressed in that videso series.I look forward to your feedback on this. sorry i sounded rude, I just get frustrated!
charronfamilyconnect 2 years ago
You are correct that the financial savvy and literate that are not too greedy and are concervative will tend to do well when they own true assets like gold, land on a good location etc.... The problem is most of the world isn't that savvy. I am glad that I am savvy and am independently wealthy but I am no elitist. Most people get their education from magazines, television, and mainstream educational institutions which dont teach shit about financial literacy but how to be a consumer.
charronfamilyconnect 2 years ago
That was fascinating! I look forward to the next one.
Aslapacrosstheface 2 years ago
Your conception of deflation is severely lacking, although I appreciate the video overall - Historical standing on free-price systems shows clearly that any decrease in price tends to increase demand. The problem is fundamentally that I think you may be missing (or glossed over for time) is that the change in value of money doesn't happen immediately, and a gradual sustained deflation would be immensely preferable to what we're experiencing right now. Huge jumps up or down are disruptive.
Fountainhead83 2 years ago
Run me through that evidence briefly, I'm not familiar with it. That's not to be belligerent, I'm just not a macroeconomic historian!
And there is of course a subtle distinction between a fall in prices and deflation. The latter implies an expectations component, which is what does the damage, the former does not.
JmkLcAeJsm 2 years ago
actually Fountainhead83 hit the nail on the head with that one, that's exactly what i was thinking. somehow my comment wasn't posted... there are people who will enjoy spending the moneys from the printing press before price adjustments arrive and those people will have an unfair advantage over people who saves up their money and have their money lose value.
RoronoaZoro222 2 years ago
Not quite what he was saying, but you are of course correct.
This is an argument for responsible and consistent monetary policy.
JmkLcAeJsm 2 years ago
Nice vid champ <3 5/5
Fraghka 2 years ago
I studied economics for two years so I have a piece of knowledge here and there. I understand the video quite clearly but some people may find wording difficult. I mean this video is aimed at people who don't know much economics right? Anyway good video, economics can be very interesting and mind opening. I'm looking forward to new video!
EnhancedNightmare 2 years ago
20 bunches of bananas? You're spending too much on haircuts.
MrKrov 2 years ago
I understand what you are saying but nobody has been able to successfully explain how the system/economy really works.
I personally think that the reason why is because the system is to large and complex for any one person to fully understand.
fartwimp 2 years ago
Come on, no one's ever worked out how the physical universe works in its entirety either!
The point of econ is to isolate various key effects, analyse them, and see how we might manipulate them to increase the great sum of human welfare.
JmkLcAeJsm 2 years ago
oh, regardign my first comment, is that what you meant with instanteneusly clearing? ^_^'
RoronoaZoro222 2 years ago
second comment*
RoronoaZoro222 2 years ago
you did explain about the gold but the point i was trying to make is that the first people who get the newly printed money is the ones that benefit and escape inflation because the marked doesn't update instantly after new money. i'm also under the impression that the dollar is supposedly artificially high value?
RoronoaZoro222 2 years ago
I like the video, but when you ended our discussion last time i asked if the money policy that is in place now encourage developed countries to have less industry and rather move money around rather than selling stuff. (i belive the united states is at a 700 billion negative each year in the import versus export balance)
RoronoaZoro222 2 years ago
Yeah, but that means you're 700 billion UP in the capital account.
I'm willing to bet New york has a substantial trade surplus with the rest of the US, is it concerning anyone?
JmkLcAeJsm 2 years ago
oh and the video this is posted as a response to was brilliant :)
RoronoaZoro222 2 years ago
i don't quite understand what you mean with 700 billion UP in capital... could you explain in laymans terms? :)
RoronoaZoro222 2 years ago
The capital account is the converse of the current account. Every $ of foreign goods the UK buys over and above our exports has to be paid for somehow.
This is done by selling assets (Shares, Bonds, Factories etc) to foreigners. This is the mechanism that equilibrates the demand for pounds with the supply of pounds.
JmkLcAeJsm 2 years ago
so the goverment sells 700 billion worth of bonds or stocks to foreign countries?
RoronoaZoro222 2 years ago
No, individuals do. Although US treasury bonds are bought by everyone, and the chinese own bazillions of them!
JmkLcAeJsm 2 years ago
i doubt the chinese will ever get their money back, so why do they keep buying?
RoronoaZoro222 2 years ago
They're not anymore, but they did it to improve the competitiveness of their exports by artificially inflating the value of the dollar.
JmkLcAeJsm 2 years ago
let me see if i got that... they buy bonds so that the exports (i.e cheap crap) they sell to America which is paid with dollars... is worth more globally? they spend money so that the money they receive is of higher value? Would they have to sell some bonds back to actually make real profit out of that and why can't they just change to their own currency rather than the dollar?
RoronoaZoro222 2 years ago
Because they are profiting from the bonds. Bonds have a yield as you know, so it makes sense for them to keep investing as long as the US can pay out.
But I think they think US govt. paper is too risky now, so they've stopped buying.
Funny old financial world isn't it?
JmkLcAeJsm 2 years ago
Indeed, thanks for the explanations, it makes perfect sense now.
RoronoaZoro222 2 years ago
You're wrong to apologize for "wasting time on a boring topic" or whatever it is you said at the end.
The conciseness of your explanations and the speed with which you stated them was more than enough to hold my interest. I can honestly say that I found this video fascinating.
As a person with ADD, I must thank you for your agreeable style.
seflersinsburg10 2 years ago
Awesome video and rather interesting to say the last. Looking forward to more videos of this nature. =3
NwZ2 2 years ago
Very informative!
When I worked in health policy research, I often heard the phrase, "You can't put a dollar value on a human life!" Well... Yes, you can -- and you MUST.
Actually, you put a dollar value on a year of life (the "person-year"), and you discount the value of person-years in the future. The logic is the same described in this vid! Person-years are a commodity subject to interest and discounting just like bananas and haircuts.
If not, we'd have no health care services.
hogtiechamp 2 years ago
I usually find your videos some of the most informative on YouTube, but they can be very brisk so that following your line of thought can be tricky. While I already know everything you have presented in this video, I think it may have gone too fast; although, I admit this is not the best place for an introduction to macroeconomics. Besides your volume being too low, keep up the good fight against ignorance and illogicality!
Princeerj 2 years ago
You may well be right, but I hope that people will be able to refer back to it and take away a few key ideas. Many thanks for the comment.
JmkLcAeJsm 2 years ago
Being a businessman i found it very interesting as well.
uskafighter 2 years ago
Informative I suppose
2fat2exercise 2 years ago