HANG ON!!! you are missing one very important point as to why we are in the trouble we are in! money isnt given away by the fed. IT IS LOANED with interest. where does the treasury get the money to pay the interest back?! it doesnt exist. so more money has to be printed and loaned out to cover the interest. This is then repeated forever. getting worse and worse!! until disaster. which is right now
This guy is a very good teacher. I'm pretty much a visual learner.
I see the BANKS are doing a good job making money for themselves, Why lend to the public if you can make money like this. Also why we're they bailed out?
Credit Unions,and Small Banks not in financial trouble are the favorite choice today.
Ya'll see this, right? The fed (a private bank) creates money out of thin air, loans it to Chase at interest. Chase buys bonds, which are debt to you, the citizen. You, your kids, and grandkids will pay it back, principle and interest, to the Chase and Federal Reserve bankers. You're paying them back money they created out of thin air. This is why the fed must go. There's no reason the treasury shouldn't print the money and spend it into circulation, with NO DEBT.
Chase couldn't do this without the government. This video doesn't go far enough; the real culprit is the Federal Reserve (which is not Federal nor a Reserve) but IS a private company, who prints $ out of thin air & thereby creates inflation. Chase's bad habits are learned from the Fed but made legal through government law.
that's right, all the Fed has to do is clear the debt owed to it by the US Gov't and we would be in much better shape. But will they do that? No, because they are just a private corporation looking for profit and using their unfair and immoral government given right to create money at will.
that's right, all the Fed has to do is clear the debt owed to it by the US Gov't and we would be in much better shape. But will they do that? No, because they are just a private corporation looking for profit and using their unfair and immoral government given right to create money at will.
Would be great if you could do a video detailing this same example but including 'fractional reserve banking system' element.
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." Henry Ford
Ha ha. Nice video! The part that is missing is where Dad/ the Federal Reserve gets the money he loans to the banks in the first place. "Dad" just creates money out of nothing, so he can loan it for nothing if he wants to. Mom/the treasury has to repay the loans with real money which is quite a bit harder and more painful to come by. If Dad keeps loaning "money" to Chase pretty soon I won't be able to afford a drink. If Mom stopped spending so much I might not feel the need for one quite as much.
@shrit110 That's part of the crap, *no one* can pay the 5 cents. When the Fed creates money out of thin air, they create the principle only, they don't create the interest. So, fed's created, they print the first $100. It's loaned out at 5%, so they want $105 back, but only the $100 was made, not the $5. This guarantees they'll need to keep printing money (inflation) to keep the system going, and the country can *NEVER* become debt free.
@millball They do, fed buys bonds from the Gov, the Fed also buys bonds through commercial banks. Fed creates money, loans it to treasury, we pay the interest.
@XpEAnUTBuTtERsUckSX I was following you till you said 'fed creates money'... :-| I think theres a fundamental problem with that and thats why the world is on its head! building economies on monopoly money! >_<
@millball It's a strategy to give the banks money to recapitalize, as he said, which means that the Fed is bailing the banks out. It's not that surprising that the banks are getting so much free money, because they spend so much time lobbying for government assistance. Nearly everyone at the Fed has worked for one of the banks that is now getting the cash. Tim was from Goldman Sachs for example.
@millball because that would ask why the Treasury isn't printing the money but instead borrowing it from a privately owned entity, and the banks would also have to deal with their own mess of overleveraging, which would/could make some of them go out of business.
...nobody is making any sense. How can a treasury print money out of thin air? Obvious rhetorical question but a very pertinent 1. Perhaps i'll just wikipedia it. :-\
The main reason behind this was to recapitalize the banks because they had lost so much money from falling stock prices and losses on mortgage backed securities when the US housing market collapsed.
@millball because it would have to have the money to buy. which it doesnt. all money in circulation comes from a loan. you cannot buy from someone with money you have been loaned from them in the first place.
@millball the fed can loan money to other BANKS, which the treasury is not; hence the term interbank loans. What can happen though is that the fed decides to buy t-notes, bonds, assets, etc through quantitative easing which they have done 3 times in the past few years.
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.
@KennedyCorey Fed makes the money, out of thin air. They enter it in a ledger with a pen (or computer). 2) 1913 brought us the Federal reserve and the IRS, tax receipts each year equal interest on the debt. Our taxes go to pay the federal debt. They figured out long ago they don't have to stick people in a cotton field to enslave them, just control the money. 3) I've never heard of FRL, unless they meant fractional reserve banking.
Banks are stealing peoples $. That 5% that they get back is paid by the taxpayers. The fed is a private institution created by banks not the government. Is a bank cartel. They don't care about the people they care about their interest and well-being=Banks making $.
@Linfone A bank??? Is a private bank not a US government bank. Look for the explanation of the FED in any Macroeconomics book. The definition clearly explains that the FED creates $ and control the currency . Its a scheme. That's why we the economy is the way it is. Besides Corporations that have congress members in their back pocket and establish manage trade not FREE trade and now we are a 3rd world country without a industrial base.
This video is simple and easy to understand but clearly explains well what a failing racket the federal reserve and the private for profit fiat currency bank system has done so well, i.e scammed the rest of humanity to the benefit of a few arrogant sociopaths.
Only the FDR Glass-Steagall principle will separate commercial from speculative banking, thus freeing the nation from obligations to Wall St. and the City of London, and re-establishing a credit system for rebuilding the nation.
H.R. 1489, Return to Prudent Banking Act of 2011, is before the House of Representatives, which aims to revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so called 'Glass-Steagall Act
The iron triangle between the fed, the banks, and the US Treasury might seem exploitative in how banks borrow at a discounted rate from the fed and use it to buy US treasuries at a higher interest rate, but if you put this in a larger economic context: If banks could not borrow from the fed they will have to raise their interest rates to borrow from the public. Hence causing savings & CD rates, and loans (ex: for school and home) to be higher. Higher interest rates decreases economic growth.
@FuckUTube10 Yes, the banks would "have" to raise interest rates on loans to individuals.... in order to maintain record profits. No mention in your statement about whether it's crucial to a healthy economy that execs be kings and the masses be ever-miserable paupers.
Nope, sorry; still sounds mightily exploitative. Jesus, how can you watch an illustration like this and be compelled- at all- to argue for this models necessity? By the way- they're screwing you, too.
So when the government injects this money into the economy, doesn't it go into the peoples' bank accounts? Then the banks can multiply this money by buying even more bonds with their excess reserves?
Love the explanation, have you seen the movie Money as Debt? I believe that unearned income should be taxed, otherwise all the wealth would go into unearned income (renteer economy) and there would be no productivity. Taxing labour, hurts the middle class IMO. check out economist Michael Hudson
Wow!!!! Chase gets money from the Federal Reserve, which is funded by our tax dollars, for 0 percent interest. Chase then lends it to the treasury who pays back the money the with interest, with our tax dollars. What the hell! How isn't this massive fraud?
The other way banks make big bucks is that every mortgage and loan, the money for which is loaned into existence. It's free money that they get to charge interest on... In essence sucking everyone dry. It's awesome if you're an investor in the big banks... until someone files this behavior under fraud.
Great video! One thing you did not mention is that its the american peoples work that has to pay for for the big bag of money the banks get. The banksters get bonuses and use them for goods and services that american people create with their time and sweat. Shameful, WWJD.
Why doesn't the treasury get money directly from the fed at no interest? What is the purpose of having the banks in the middle when relevant to the treasury? I have also heard the treasury buys their bonds from Glodman Sacs(spelling?)
Sadly thats exactly how it works. Daddy gives Chase $1 for free, he lends it out at interest. However When Daddy is creating all the money and can only be given out by Chase at interest, the question posed is when does Chases's borrowers (public) get the money to pay the interest on those loans?
At worst, it is outright fabricated propaganda. The obvious trend in these Marketplace videos is to always make banking institutions look like innocent bystanders as uncontrollable things happen to them, when in most cases banks cause these problems through reckless risk taking. Honestly, who in their right mind thinks that "the big bucks" come from investing in treasuries? It's laughable.
At best, this was misleading. The banks don't make any significant money this way. The big bucks come from wild risk, and government treasuries are about the least risky things you can buy (at least they were until recently). Banks make the "Big Bucks" by making big bets and using leverage to cover them. It's win-win for them. If the bets pan out, they get rich, if the bets don't pan out, they get rich from Fed handouts. Ultimately, these handouts are pick-pocketed from taxpayers.
Obamanomics 101. The taxpayer supports the Fed. The Fed, The treasury cannot make political contributions to the Democrats but Chase can. In the meantime the Democrats raid the Treasury for all kinds of social programs which keep the Democrats getting elected, who in turn authorize the fed to give to the bank, who in turn contributes to their political campaign to get them elected and keep the money-power machine going at the expense of the middle class.
er why cant the fed just lend straight to the treasury? and why does the treasury need to finance the fed if the fed is the one with so much money to lend the banks to lend to the treasury in the first place?! this is confusing me. =/
@thegoonist because the fed and the treasury operate separately. The treasury cannot make political contributions to the Democrats but Chase can. In the meantime the Democrats raid the Treasury for all kinds of social programs which keep the Democrats getting elected, who in turn authorize the fed to give to the bank, who in turn contributes to their political campaign to get them elected and keep the money-power machine going at the expense of the middle class.
And all the interest paid from the government to the banks is actually taxpayers money or new money (which creates inflation sooner or later affecting the taxpayers as well). So in the end the whole population is feeding the banks with huge profits while they suffer diminishing purchasing power and liberties.
These are some of my favorite videos. I really learn a great deal every time you do one. So just wanted to say thank you for doing them and please keep up the great work!!!!
@fuckheadfilms see 2nd post - if it makes u feel better, i acknowledge your nerdy accuracy to be correct - i am just pointing out how little i care ;)
Another fantastic run through of US banking and financial systems. Excellent as always. I do however have two requests Mr Hirsch.
First off, would you ever consider doing a series or at least a set number of reports centred around the British system. Economical matters which work differently in the UK than in the US?
And secondly, what's your favourite thing to reach for if your ever left very badly needing a drink?
So the Fed basically instead of giving it to the treasury it gives it first to the banks....Is this money laundering?? it looks likes it could be. either tha just a BANK robery by the banks!
The bankers of course love this system. Who wouldn't love free money? But it is not the banks that are at fault. If the Fed gave 'you' free money, would you then be at fault?
The problem is with the concept of the Fed itself, the idea that a central bank can simply invent money out of thin air (literally) and give it to whomever it wants, and the people and Gov aren't even allowed to know to whom it gives the free money!
The Fed is a private bank, not a government entity. The Fed is owned by.....yes, JP Morgan, other private banks, and other centrals European banks. Therefore, the banks, through the Fed (themselves) lend themselves money at zero or nearyly zero percent interests so they can lend it to the Tresurey to earn interest, which is paid by the citizens. A great system of wealth confiscation, eh?
OK, so mom takes the dollar, but where the hell is she going to get five cents? Well, she has to borrow five cents. It is just a vicious cycle that keeps people in debt i.e. slaves for the corporate world, who gets the "money" for FREE from the big bad FED. You see people, don't borrow unless you can generate a huge profit from that loan. Peace
Yes, and then it is likely to get really ugly for the people at the top. There is a reason the founding fathers wanted the people to be armed.
The US has been living off of credit for 37 years. The bill is due. Obama is looking for more credit, but that only delays paying the bill. Ultimately the bill has to be paid, and the US cannot pay it. The economy is NOT going to improve. The worst is yet to come.
Buy gold and silver coin, stock up on necessities, get ready, it's going to hurt.
Well I'm a believer in real assets in general not just precious metals. I think stocks, bonds, realty even collectibles are just as good for storing wealth. As for making it, be in whatever market is moving.
If you really know what you are doing, yes. But stocks can tumble if the markets for the companies that issued the stocks, are in a prolonged recession. Bonds can default if the bond issuer goes bankrupt, and that can easily happen to a government (and will to the US). And collectibles only hold value as long as there are collectors who have spare money to put into their collections. In a major crash, the value of collectibles could evaporate. Gold and silver are for me, safer.
This is fantastic! Every American citizen should see this video, it's really important that we understand Wall Street so that we know what needs be done to fix the fundamental problems in our financial institutions.
I love the Bernanke drawing, these videos are great.
Bouchon211 6 days ago
bonds risk free??? what a lie
idmji89 2 weeks ago
BS.
1337Thrug 3 weeks ago
Ron Paul 2012! End the Fed!
polarbearanne 1 month ago 2
HANG ON!!! you are missing one very important point as to why we are in the trouble we are in! money isnt given away by the fed. IT IS LOANED with interest. where does the treasury get the money to pay the interest back?! it doesnt exist. so more money has to be printed and loaned out to cover the interest. This is then repeated forever. getting worse and worse!! until disaster. which is right now
stephenddblyth 1 month ago 5
@stephenddblyth it gets money from taxes, hence why everything is taxed.
scott1506 2 weeks ago
mom looks like a punk
xcelpast 1 month ago
This guy is a very good teacher. I'm pretty much a visual learner.
I see the BANKS are doing a good job making money for themselves, Why lend to the public if you can make money like this. Also why we're they bailed out?
Credit Unions,and Small Banks not in financial trouble are the favorite choice today.
etaylor38 1 month ago
Chase has controlling shares in the Fed.
genesistwoeighteen 1 month ago
Ron Paul 2012
ChristiansMustLearn 2 months ago 2
Loan Sharking is illegal tho... Because all that profit you make isn't taxed. So the country will think you tax evasion.
puremage400 2 months ago
Chase bank !
supercaleb08 2 months ago
In other words it is:
ONE BIG SCAM.
farceadentus 3 months ago 10
@farceadentus it took us only about 80 years to realize it ...
NeoCorporatism 2 weeks ago
you are god
Rasterius 3 months ago
And only 28,000 + people viewed this! Its amazing
MrVinbone 3 months ago
this cycle of lending has reached the tune of 16 trillion dollars!!!
hellahotdude 4 months ago
Ya'll see this, right? The fed (a private bank) creates money out of thin air, loans it to Chase at interest. Chase buys bonds, which are debt to you, the citizen. You, your kids, and grandkids will pay it back, principle and interest, to the Chase and Federal Reserve bankers. You're paying them back money they created out of thin air. This is why the fed must go. There's no reason the treasury shouldn't print the money and spend it into circulation, with NO DEBT.
mikejadoti 4 months ago
@mikejadoti
Two Presidents did that and got killed.
shrit110 4 months ago
Treasory bonds are not 5% when the Fed is lending to banks at 0.25%???
macroman52 4 months ago
Chase couldn't do this without the government. This video doesn't go far enough; the real culprit is the Federal Reserve (which is not Federal nor a Reserve) but IS a private company, who prints $ out of thin air & thereby creates inflation. Chase's bad habits are learned from the Fed but made legal through government law.
uberpartyplaylist 4 months ago
and to top it off Chase owns stakes in the Fed AND would be bailed out if it's investments ever failed! YAY!
DCUPtoejuice 4 months ago
This has been flagged as spam show
that's right, all the Fed has to do is clear the debt owed to it by the US Gov't and we would be in much better shape. But will they do that? No, because they are just a private corporation looking for profit and using their unfair and immoral government given right to create money at will.
DCUPtoejuice 4 months ago
that's right, all the Fed has to do is clear the debt owed to it by the US Gov't and we would be in much better shape. But will they do that? No, because they are just a private corporation looking for profit and using their unfair and immoral government given right to create money at will.
DCUPtoejuice 4 months ago
This has been flagged as spam show
Would be great if you could do a video detailing this same example but including 'fractional reserve banking system' element.
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." Henry Ford
mrblack61 5 months ago
guys thank you so much for your videos, they are great, simple to understand and yet educating and serious. THANKS
yonataneshel 5 months ago
Ha ha. Nice video! The part that is missing is where Dad/ the Federal Reserve gets the money he loans to the banks in the first place. "Dad" just creates money out of nothing, so he can loan it for nothing if he wants to. Mom/the treasury has to repay the loans with real money which is quite a bit harder and more painful to come by. If Dad keeps loaning "money" to Chase pretty soon I won't be able to afford a drink. If Mom stopped spending so much I might not feel the need for one quite as much.
classicalbunny 6 months ago
I like your hair :d
gekkeredon 6 months ago
can you like do this at home or do you need a bank?
aderandie2 6 months ago 5
@aderandie2
I think thats Loan Sharking
thedarknightrises1 2 months ago
so who really pay the 5 cents?
i believe it is people's money . that's why it is called a robbery !
shrit110 7 months ago
@shrit110 That's part of the crap, *no one* can pay the 5 cents. When the Fed creates money out of thin air, they create the principle only, they don't create the interest. So, fed's created, they print the first $100. It's loaned out at 5%, so they want $105 back, but only the $100 was made, not the $5. This guarantees they'll need to keep printing money (inflation) to keep the system going, and the country can *NEVER* become debt free.
mikejadoti 4 months ago
Comment removed
shrit110 7 months ago
The Irish do have the gift of gab.
asianwomansl 7 months ago
Why doesn't the Treasury not just buy from the Fed?
millball 7 months ago 12
@millball the answer is on page 149 of the book "What Went Wrong with Economics" (search on amazon).
mickanomics 7 months ago
@millball They do, fed buys bonds from the Gov, the Fed also buys bonds through commercial banks. Fed creates money, loans it to treasury, we pay the interest.
XpEAnUTBuTtERsUckSX 3 months ago
@XpEAnUTBuTtERsUckSX I was following you till you said 'fed creates money'... :-| I think theres a fundamental problem with that and thats why the world is on its head! building economies on monopoly money! >_<
millball 3 months ago
@millball ......But they do, they print it and buy government bonds with it, that's how the Gov gets it;s money (aside from taxation).
XpEAnUTBuTtERsUckSX 3 months ago
@millball It's a strategy to give the banks money to recapitalize, as he said, which means that the Fed is bailing the banks out. It's not that surprising that the banks are getting so much free money, because they spend so much time lobbying for government assistance. Nearly everyone at the Fed has worked for one of the banks that is now getting the cash. Tim was from Goldman Sachs for example.
Thatmakessense356 3 months ago
@millball Because then the banks wouldn't make any money
melveyr 2 months ago
@millball because that would ask why the Treasury isn't printing the money but instead borrowing it from a privately owned entity, and the banks would also have to deal with their own mess of overleveraging, which would/could make some of them go out of business.
gulllars 2 months ago
...nobody is making any sense. How can a treasury print money out of thin air? Obvious rhetorical question but a very pertinent 1. Perhaps i'll just wikipedia it. :-\
millball 1 month ago
@millball
The main reason behind this was to recapitalize the banks because they had lost so much money from falling stock prices and losses on mortgage backed securities when the US housing market collapsed.
tippingpts 1 month ago
@millball because it would have to have the money to buy. which it doesnt. all money in circulation comes from a loan. you cannot buy from someone with money you have been loaned from them in the first place.
stephenddblyth 1 month ago
@millball For reasons that will be explained to you when you take an economics class.
sodafromyoda 1 week ago
@sodafromyoda OOOoooOOHhh.. somebody got out of the wrong side of the bed.
Just for the record; I DONT CARE ANYMORE... stop thankyou for all your wonderful, yet still unhelpful, comments. BUT STOP REPLYING TO MY MESSAGE! DX
millball 1 week ago
@millball the fed can loan money to other BANKS, which the treasury is not; hence the term interbank loans. What can happen though is that the fed decides to buy t-notes, bonds, assets, etc through quantitative easing which they have done 3 times in the past few years.
atomicski 1 week ago
This has been flagged as spam show
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 7 months ago
Okay, where is the Fed getting all their money from in the first place.
2) why does he government need more money, dont they get enough from taxes alone.
3) Fractional reserve lending?...I that a real thing...why wasnt it discussed here?
thanks alot, great vid!!
KennedyCorey 8 months ago
@KennedyCorey Fed makes the money, out of thin air. They enter it in a ledger with a pen (or computer). 2) 1913 brought us the Federal reserve and the IRS, tax receipts each year equal interest on the debt. Our taxes go to pay the federal debt. They figured out long ago they don't have to stick people in a cotton field to enslave them, just control the money. 3) I've never heard of FRL, unless they meant fractional reserve banking.
mikejadoti 4 months ago
@mikejadoti thanks for the explaination....if you like comedy come to my channel...if you like funny comedy dont...later
KennedyCorey 3 months ago
You guys want banks not to make money? Easy, don't deposit money into the system. Hold cash in a jar, box, or bag under your bed.
Linfone 8 months ago
Banks are stealing peoples $. That 5% that they get back is paid by the taxpayers. The fed is a private institution created by banks not the government. Is a bank cartel. They don't care about the people they care about their interest and well-being=Banks making $.
mbmart2005 9 months ago
@mbmart2005 The Federal Reserve is a bank's bank created by the government... This is from American history in the early 1900s.
Linfone 8 months ago
@Linfone A bank??? Is a private bank not a US government bank. Look for the explanation of the FED in any Macroeconomics book. The definition clearly explains that the FED creates $ and control the currency . Its a scheme. That's why we the economy is the way it is. Besides Corporations that have congress members in their back pocket and establish manage trade not FREE trade and now we are a 3rd world country without a industrial base.
mbmart2005 8 months ago
the most profitable person in these videos is the bartender...selling everyone drinks!
MikeTsan 9 months ago
This video is simple and easy to understand but clearly explains well what a failing racket the federal reserve and the private for profit fiat currency bank system has done so well, i.e scammed the rest of humanity to the benefit of a few arrogant sociopaths.
wjksea 10 months ago 2
Only the FDR Glass-Steagall principle will separate commercial from speculative banking, thus freeing the nation from obligations to Wall St. and the City of London, and re-establishing a credit system for rebuilding the nation.
H.R. 1489, Return to Prudent Banking Act of 2011, is before the House of Representatives, which aims to revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so called 'Glass-Steagall Act
tepstolog 10 months ago
Why not get rid of Chase who seems superfluous? Cannot Ben give money directly to Tim in exchange for treasurys with an interest rate well below 5%?
nemeczek67 10 months ago
The iron triangle between the fed, the banks, and the US Treasury might seem exploitative in how banks borrow at a discounted rate from the fed and use it to buy US treasuries at a higher interest rate, but if you put this in a larger economic context: If banks could not borrow from the fed they will have to raise their interest rates to borrow from the public. Hence causing savings & CD rates, and loans (ex: for school and home) to be higher. Higher interest rates decreases economic growth.
FuckUTube10 10 months ago 2
@FuckUTube10 Yes, the banks would "have" to raise interest rates on loans to individuals.... in order to maintain record profits. No mention in your statement about whether it's crucial to a healthy economy that execs be kings and the masses be ever-miserable paupers.
Nope, sorry; still sounds mightily exploitative. Jesus, how can you watch an illustration like this and be compelled- at all- to argue for this models necessity? By the way- they're screwing you, too.
portzblitz 9 months ago
I thought they made money with fraud.
hymnofashes 10 months ago
Thank You for teaching about money and finances that we didnt get in public or catholic school.
jered1964 11 months ago
So when the government injects this money into the economy, doesn't it go into the peoples' bank accounts? Then the banks can multiply this money by buying even more bonds with their excess reserves?
zzzzaaa0990 11 months ago
lmao does he say say "needing a drink" at the end of each video. This is the 2nd I've watched and this guy is awesome.
EJWProduction 11 months ago
@EJWProduction i love you
SuperKing613 11 months ago
i need a drink lol
Semyasei 11 months ago
thanks you! my business school never taught me this in 4 years
mulanrebecca 1 year ago
Many thanks for these videos.
MEv1551 1 year ago
Love the explanation, have you seen the movie Money as Debt? I believe that unearned income should be taxed, otherwise all the wealth would go into unearned income (renteer economy) and there would be no productivity. Taxing labour, hurts the middle class IMO. check out economist Michael Hudson
metalhaze1982 1 year ago
how does Tim gets the extra 5% money to pay back to Chase? at the end of the day, i only see that bag of money with Chase....
nicholaschoongws 1 year ago 2
Wow!!!! Chase gets money from the Federal Reserve, which is funded by our tax dollars, for 0 percent interest. Chase then lends it to the treasury who pays back the money the with interest, with our tax dollars. What the hell! How isn't this massive fraud?
amartin7889 1 year ago
@amartin7889 it's is a fraud.... a legal one.
Muzztein 1 year ago
Great work! - From Toronto, Ontario, Canada! - If these were on a DVD series with YOUTUBE I'd purchase!! - I wish you were my professor/teacher!!
AmritSinghAuja 1 year ago
- At the end u meant treasury got a 'borrower' right?
- lol wondering if u can just put the pen under the white board :P
Faisdragon 1 year ago
ur videos are great but that one is too easy explained in my opinion...
MrBlackJack93 1 year ago
Strange family
webber1991 1 year ago
So what does the treasury do?
And, why can't they just get money directly from the feds?
HELP!!!
olliewoodshire 1 year ago
he got almost everything right! ...except for one thing... bernanke doesn't wear glasses...
Sexisttroll 1 year ago
At 3:26 is he asserting that Geithner is really a transsexual?
:D
He didn't mention "little" Chase's Siamese twin brother JPMorgan.
Who just happens to run the World's largest hedge fund.
TravisBick1e 1 year ago
ha ha little chaise was a loanshark
bryanthebarber 1 year ago
Can I start a Bank so i can make money without risking anything too!!!
ACtruth1 1 year ago
The other way banks make big bucks is that every mortgage and loan, the money for which is loaned into existence. It's free money that they get to charge interest on... In essence sucking everyone dry. It's awesome if you're an investor in the big banks... until someone files this behavior under fraud.
revolutionnot 1 year ago
Great video! One thing you did not mention is that its the american peoples work that has to pay for for the big bag of money the banks get. The banksters get bonuses and use them for goods and services that american people create with their time and sweat. Shameful, WWJD.
adamdarrow 1 year ago
5% a week, that's 260% APR, what a loan shark....
iseethestar 1 year ago
This has been flagged as spam show
Can you please explain why we have Chase in the middle of this transaction. Has Chase used its lobbying power to be in the middle??
ksumedh 1 year ago
Can you please explain why we have Chase in the middle of this transaction. Has Chase used its lobbying power to be in the middle??
ksumedh 1 year ago
Why doesn't the treasury get money directly from the fed at no interest? What is the purpose of having the banks in the middle when relevant to the treasury? I have also heard the treasury buys their bonds from Glodman Sacs(spelling?)
Downfurlife 1 year ago
Sadly thats exactly how it works. Daddy gives Chase $1 for free, he lends it out at interest. However When Daddy is creating all the money and can only be given out by Chase at interest, the question posed is when does Chases's borrowers (public) get the money to pay the interest on those loans?
chrisbro74 1 year ago
@EarnanOMaille
At worst, it is outright fabricated propaganda. The obvious trend in these Marketplace videos is to always make banking institutions look like innocent bystanders as uncontrollable things happen to them, when in most cases banks cause these problems through reckless risk taking. Honestly, who in their right mind thinks that "the big bucks" come from investing in treasuries? It's laughable.
shoelessjohn 1 year ago
@shoelessjohn To be fair, I think Paddy's explaining how the banks are making big bucks NOW despite not lending the money to joe public.
rosihantu1 1 year ago
At best, this was misleading. The banks don't make any significant money this way. The big bucks come from wild risk, and government treasuries are about the least risky things you can buy (at least they were until recently). Banks make the "Big Bucks" by making big bets and using leverage to cover them. It's win-win for them. If the bets pan out, they get rich, if the bets don't pan out, they get rich from Fed handouts. Ultimately, these handouts are pick-pocketed from taxpayers.
shoelessjohn 1 year ago
This guy is one of the best financial teachers online
123xylem 1 year ago
Obamanomics 101. The taxpayer supports the Fed. The Fed, The treasury cannot make political contributions to the Democrats but Chase can. In the meantime the Democrats raid the Treasury for all kinds of social programs which keep the Democrats getting elected, who in turn authorize the fed to give to the bank, who in turn contributes to their political campaign to get them elected and keep the money-power machine going at the expense of the middle class.
ajamoros 1 year ago
This video does not explain why chase exists.
Why doesn't treasury borrow directly from the Fed??
simmold 1 year ago 2
Awesome videos.. I really appreciate the explanations.
ToshiroDK 1 year ago
THIS VIDEO IS SO AMAZING... It sums up simply what it takes people years and whole books to learn...
Clyaton 1 year ago
er why cant the fed just lend straight to the treasury? and why does the treasury need to finance the fed if the fed is the one with so much money to lend the banks to lend to the treasury in the first place?! this is confusing me. =/
thegoonist 1 year ago 5
@thegoonist because the fed and the treasury operate separately. The treasury cannot make political contributions to the Democrats but Chase can. In the meantime the Democrats raid the Treasury for all kinds of social programs which keep the Democrats getting elected, who in turn authorize the fed to give to the bank, who in turn contributes to their political campaign to get them elected and keep the money-power machine going at the expense of the middle class.
ajamoros 1 year ago
yeah now where does the money come from to pay the fed and chase back?
IT DOESN'T
The people become more and more in debt
FOREVER
PAPER PONZI SCHEME
MirageScience 1 year ago 2
Great Video.
The7legacy 1 year ago
great video.... keep posting ....
brian10duke 1 year ago
you rock!
soniceguybutsonice 2 years ago
that just seems inherently wrong
malumanimi 2 years ago 4
debt monetization
Nuanceqwest 2 years ago
And all the interest paid from the government to the banks is actually taxpayers money or new money (which creates inflation sooner or later affecting the taxpayers as well). So in the end the whole population is feeding the banks with huge profits while they suffer diminishing purchasing power and liberties.
You can call it theft or counterfeiting.
frankknopers 2 years ago 5
These are some of my favorite videos. I really learn a great deal every time you do one. So just wanted to say thank you for doing them and please keep up the great work!!!!
scutter4christ 2 years ago 60
i bet if the camera scrolls down, he's standing in a pile of pens
preciousmetals168 2 years ago 37
@preciousmetals168 A camera can tilt, pan, and zoom. a camera does not scroll.
fuckheadfilms 8 months ago
i cannot even begin to explain 2 u the extent of the fuck that i do not give ;)
preciousmetals168 8 months ago
@preciousmetals168 I cannot begin the amount of ignorance you exhibit in just 2 posts.
fuckheadfilms 8 months ago
@fuckheadfilms see 2nd post - if it makes u feel better, i acknowledge your nerdy accuracy to be correct - i am just pointing out how little i care ;)
preciousmetals168 8 months ago
Keep up the vids
fatalegg 2 years ago 4
Another fantastic run through of US banking and financial systems. Excellent as always. I do however have two requests Mr Hirsch.
First off, would you ever consider doing a series or at least a set number of reports centred around the British system. Economical matters which work differently in the UK than in the US?
And secondly, what's your favourite thing to reach for if your ever left very badly needing a drink?
clodester 2 years ago 3
So the Fed basically instead of giving it to the treasury it gives it first to the banks....Is this money laundering?? it looks likes it could be. either tha just a BANK robery by the banks!
fazholio 2 years ago 7
The bankers of course love this system. Who wouldn't love free money? But it is not the banks that are at fault. If the Fed gave 'you' free money, would you then be at fault?
The problem is with the concept of the Fed itself, the idea that a central bank can simply invent money out of thin air (literally) and give it to whomever it wants, and the people and Gov aren't even allowed to know to whom it gives the free money!
Support bill HR 1207: Audit The Federal Reserve
Panpiper 2 years ago 4
The Fed is a private bank, not a government entity. The Fed is owned by.....yes, JP Morgan, other private banks, and other centrals European banks. Therefore, the banks, through the Fed (themselves) lend themselves money at zero or nearyly zero percent interests so they can lend it to the Tresurey to earn interest, which is paid by the citizens. A great system of wealth confiscation, eh?
waylongwang 1 year ago 5
Another great analogy to an otherwise complex issue. 5 Stars!
emailbryan 2 years ago 3
Thanks Paddy!
Rook1515 2 years ago 4
OK, so mom takes the dollar, but where the hell is she going to get five cents? Well, she has to borrow five cents. It is just a vicious cycle that keeps people in debt i.e. slaves for the corporate world, who gets the "money" for FREE from the big bad FED. You see people, don't borrow unless you can generate a huge profit from that loan. Peace
hiphopsocnroc 2 years ago
Also, this game only works we people buy into it, no pun intended :)
hiphopsocnroc 2 years ago
The mom gets the five cents from taxing people !!!!
GoldSilver588 2 years ago 4
Exactly!
We are slowly being bleed to death. Wealthy people have declared war on poor people and poor people as usual are at war with each other.
Moral become rich fast.
It going to get really bad at the bottom.
cosmosgato 2 years ago
Yes, and then it is likely to get really ugly for the people at the top. There is a reason the founding fathers wanted the people to be armed.
The US has been living off of credit for 37 years. The bill is due. Obama is looking for more credit, but that only delays paying the bill. Ultimately the bill has to be paid, and the US cannot pay it. The economy is NOT going to improve. The worst is yet to come.
Buy gold and silver coin, stock up on necessities, get ready, it's going to hurt.
Panpiper 2 years ago
Well I'm a believer in real assets in general not just precious metals. I think stocks, bonds, realty even collectibles are just as good for storing wealth. As for making it, be in whatever market is moving.
cosmosgato 2 years ago
If you really know what you are doing, yes. But stocks can tumble if the markets for the companies that issued the stocks, are in a prolonged recession. Bonds can default if the bond issuer goes bankrupt, and that can easily happen to a government (and will to the US). And collectibles only hold value as long as there are collectors who have spare money to put into their collections. In a major crash, the value of collectibles could evaporate. Gold and silver are for me, safer.
Panpiper 2 years ago
This is fantastic! Every American citizen should see this video, it's really important that we understand Wall Street so that we know what needs be done to fix the fundamental problems in our financial institutions.
TheKrds 2 years ago