Consumer Credit is evil

[BlackNMedBlaze]

much agreed. Credit can be evil.

[MarkMillionaireGuru]

Hi jberni1

I have just been watching your video and I must admit it really is very good.

I really enjoyed watching it.

Already looking forward to more of the same in the future.

Cheers to your success.

Mark McCulloch

[lovepeace2you]

Financial services companies pay well because the job is to basically lie. They train their people to believe into those lies to lie a little better! You're right when you talk to the financial company it is like talking to a "snake"!

[schnirrschnirr]

God created money??? This is blasphemy.

[jberni1]

I completely agree with you that many people have "Money as God" and they even don´t know what blasphemy that is.

However, I would say "God gave money to people" would not be considered blasphemy, no?

[PontiffMystic]

Money is jberni's God. You heard it here folks. Lol, I am just joking. Money came out spontaneously from the need to calculate value relatives, and more accurately than you could with direct barter. I see nothing wrong with consumer credit. If you get in over your head, that's your fault, so I wouldn't just blame the bankers. If people are foolish enough to take on debt, that's their choice. I don't believe in stuff like predatory lending. You could argue China is a predatory to the USA.

[PontiffMystic]

doesn't mean women is the blame for your infidelity. There is a lot of incentives, even the government gives you incentives, point is to be rational, and prudent with your own property.

[PontiffMystic]

Debtors blame creditors for their own irresponsibility. Even other people feel sympathetic for the debtor, but it's the debtors fault. That's like blame a married man for his infidelity, because there is beautiful women willing to have sex with him. Fiscal irresponsibility stems from irresponsibility period. Such people can't pay the bills on time, have traffic tickets etc. Unfortunately the government doesn't encourage such matters, and continues to support moral hazards.

[abc123gpl]

Yes ! and Religion is bullshit ( George Carlin ) :)

[wuddychunk1]

There endeth todays sermon...lol...Good reminder though that material things aren`t compulsery

[EdvardBresal]

I very much like this comment. Good work jb...

[fezz569]

You're always interesting and very informative, thanks

[margiemaae]

I haven't seen Bernankes,Geitners and Paulsons tongues yet but I would assume they are forked!!!!

[DonnaSilverstein]

I wonder if the Garden of Eden is a metaphor, and the apple is the forbidden debt money system. A dollar sign looks like a snake.

[Rockerchic4God]

You are so right, J! Americans got a long just fine without credit cards up until the 1980's. I quit racking up debt last year, now only use AMEX for convenience of shopping online or making reservations. Balance paid off every month.

[portantwas]

I think the US needed widespread credit card consumption cos it kept ppl employed. Ppl buy goods with deferred payments so the retail and service sectors keep expanding. How do you keep expanding? Get even more ppl to buy things on credit. Unfortunately, the wheel got too fast and the hamster has had a heart attack.

Consumerism is so wasteful anyway, and damaging to the environment. We need to think of a better way - but I can't think of one. Can you?

[jberni1]

Well, then people would have to come to realize that money is not endless, which is returning to the gold standard.

[halfasheep]

I don't own a credit card. WOOPS..I'm not owned by a credit card!.

the bible is an interesting book full of contradicting lessons, thus nobody can possibly follow it. the visitation and genetic manipulation is most interesting.

[jberni1]

That´s a good one....owned by the credit card

[BlackNMedBlaze]

@jberni1 I got rid of all my credit cards. They are evil. Btw I am nosy u have an accent where are you from?

[MegaRejoice]

Thank You Jesus for people like you jberni!

[bubonick23]

I hope you are not just putting out a ton of videos lately so you can bury your October 25th prediction video.

[jberni1]

No, I hold on my October prediction.

Said so, I never said the 25th!!!

That was another youtube user in an comment.

[Ape65]

I don't like buying stuff, so I tend to wait until I desparately need something until I buy it. I often find myself buying everything I need all at once, after procrastinating for several months or even years.

For example, last August I spent about $3000 on car repairs, a new fridge, a new mattress, new clothes and new glasses. I put everything on my credit card, so as to spread out the payment over 3 months. Are you saying this is evil?

[jberni1]

Well, you are blessed!

I love buying really good quality food...

[greatwassim]

I love your posts doctor bern

entertaining and informative

you are a good and charismatic teacher

thankyou for sharing some of your insights here

[Mr1openmind]

Money is an illusion. The fed and banks create it out of nothing, backed by nothing. Who do we have to pay back interest to? Why loan to banks at 0% and to the people at 7-30%?

I agree with your bible interpretation. FWIW

[frgtmygld]

That was a good analogy in my opinion. Good job as always, thanks.

[TheLiddlekiddle]

This was all in plan LONG before the bad home loans, that was just part of their plan so they could implode the entire economy then come in as the only one who can provide the work and food, so you better get to work for them and their HUGE military industrial complex or be handed over to the police state. Thomas Jefferson knew this would happen if the banks controlled the money supply.

LOVE PEACE & FREEDOM God Bless.

[NAVYGOLDEIGHTFOUR]

Like sex and drugs, easy money is not a hard sell. Apparently corrupting our leaders to allow easy money is not that hard either.

[PrepNow]

continued: I even make sure I have the money already before I charge something on my card. I just used it because if i don't use it at all I would have no credit record which you need if you rent an apartment or something. And, I stay on top of this every month so I don't care what they charge in interest rate.

About God, I did pray to gain financial wisdom and that lead me to your chanel and some others as well.

The Bible and Jesus taught more about money than any other thing.

[PrepNow]

Great Video (as always)!

I used to be irresponsible with money when I was younger but I never blamed credit card companies, parents, society or anyone else. I simply took full responsibility for my actions--and that is the only we will grow up.

I'd prefer to not use credit cards at all but it's almost impossible to live without them for travel, hotel, car reservations, etc. But, for many years now I pay the bill in full. I don't charge/buy anything I don't need or can't pay for.

[d3adp001]

using people is wrong, credit is usery. Thats the problem.

Man created money, first of all.

Farmers needed credit, only after the banks hooked them on it, like a drug.

You NEED to READ the bible much better. Your understanding is pethetic. and you should not talk about what you don't have any understanding.

Look up jubilee. to learn what God thinks about credit.

God multiples the efforts of those who work together, but not this credit BS.

[benfaysal23]

Well credit is allowed by GOD but not the interests, actually the interests on loans are one of the major sins to GOD..

[whiskerchild]

Very informative

[1984noway]

so true

[cpswyl2]

It was a nice fireside chat I think. Cross between Charles Dickens and the bible ;).

[0urGaia]

Agree 100% with the video. I was enslaved to debt and heard an economist say its best to downsize ones standard of living before being forced to do so by the economy. I followed the advice and much more happier because of it. Too many people think materialism brings happiness, but nothing could be further from the truth, I walk with the devil no more.

[peckiledorf]

pretty god dam good

[jocknomore]

Snakes are everywhere....

[skybirdbird]

The biggest credit problem is people borrowing for a lifestyle....to take credit for something of value like real estate I think is a bit different....as long as you can realistically afford the payments....but yes...there have been many snakes....and many willing to take the apple....

[mikewalker260]

Good analogy, I enjoy your videos.

[fal2grace]

It's the greed that's evil. Thank you for this!

[davincij15]

Greed is not evil it's the means you choose to satisfy greed that is evil.

[fal2grace]

I think "greed" by definition is wanting something too much.

[davincij15]

Greed is the desire to hoard a lot something for any reason. However two things are not absolutes the object of desire and the amount that is considered excessive.

Some one greedy for love is not considered greedy if he has everyone loving him.

Also anyone can be considered greedy if they have more than anyone else.

If I create something that FORCES everyone love me it's destructive and evil. If I do something for everyone and they DECIDE to love me it is not.

The same applies to money.

[Anythingwilldo41]

You are greedy when you don't share with the "have nots".

Would you agree?

[Winst0nOBoogie]

I would not.

Greed are a motivation to justly get/have more is good.

It starts to be become evil when a person gives in to the temptations that will surely present themselves to get more, but not getting it in a JUST manner (ie. hardwork ) just by stealing from others.

Some people have different levels of drive & focus, making 'everyone equal' is a game of folly... I don't want a Rolls Royce, I really like my buick (seriously)

my 2 cents. cheers.

[Anythingwilldo41]

Oh, wasn't refering to you, but thats fine.

I never said greed is bad, I was only stating what greed was.

Sorry if you mis-understood my comment.

I personally feel like greed is good because we need the encentive to work hard(capitalism), although, i agree with some small regulations to limit greed when it comes to destroying lifes.

I'm sure you would agree?

[Winst0nOBoogie]

I would agree with that, and take it a little further...

getting more than you can enjoy, just because you can have it, and keep others from having use of it... is also a bad thing.

You can only sleep in one bed at a time... etc.

I think the line of decency lies with wanting and using what you have/get?

Sorry for jumping in on your thread. but just felt like commenting.

[Anythingwilldo41]

Yep. Take only what you use, give the rest back. Who needs two houses when they can only live in one, good point :).

[davincij15]

WinstonOboogie:

If someone wanted 10 beds and worked hard and did not cheat anyone to get it. Does it mater his reasoning to have 10 beds? Even though 9 people go without the comfort of a bed they could not afford because they did not work harder than the man who wanted all 10.

If he cheated people that would be a crime, but if he worked and provided a good via mutual consent and the 9 people traded their bed away willingly it is not his fault.

[Winst0nOBoogie]

You are correct. The situation you describe is fine with me,

my only point about the 'beds' ( just a random object I picked ) is that even if a man acquired a thousand beds JUSTLY, he would still be only able to sleep in them one at a time.

That was what I was trying to say.

Personally, I would rather have ONE kick-ass, super-duper, craft-matic, space-coil, dial-in-firmness bed.... than a hundred crappy ones :-)

Besides, where would I put them all?

Cheers everyone.

[davincij15]

lol :)

I agree the item is irrelevant what is important key issue I wanted to know where you stand is... If that person fairly and justly obtained many of those items he does not need does it give the government the right to take it from him and give to others because he does not need it?

If you say YES then it also now gives him the right to get the government to take it back for him. This is what is happening to our society, crime via government sanction.

[davincij15]

Regulation to prevent crime YES regulation to prevent greed NO.

The problem I see with regulation though is look how well it worked for the SEC or the CFTC. They missed all the ponzi scams.

So it must be up to the individuals to detect scams that wealthy criminal perpetrate on the public, not government.

[Anythingwilldo41]

Well. You need regulations to not allow excessive greed. Such as CEO purposelly destroying there companies in the medium-longer term so they could reap the benefits in the short term. I am referring to CEO of banks who gave out subprime, bundled it up and sold it away.

You must have SOME regulations, when there is none you will get monopolies and too much wealth into smallest hands possible. You can't assume that in a free market people won't abuse it.

[PontiffMystic]

Just like takes two to create a child, it takes two, or even more to destroy a sector of the economy. The banks are not just the ones responsible Anythingwilldo41, it's government, and the home buyer as well who had a speculative mentality. Government encouraged lending standards to be lowered, and incentivized risky mortgages with Fannie, and Freddie with government guarantee. Trust me I have videos of government regarding this. Deregulation wasn't the problem, without poor standards, nothing.

[PontiffMystic]

Contrary to belief, home buyers weren't innocent, if they got a ARM, and knew they couldn't afford it in the long term, they were scheming something., and speculating on home prices. Like I said, the risk was bored by the banks mostly, the home buyer can just mail the keys back, they don't care, they had bad credit anyways. Also, the economic contraction is the cure, not the problem, the problem is the boom, where the mistakes are being made. Too many, being in debt is good, paying off debt bad.

[Anythingwilldo41]

Umm, thats not related to what I said.

The banks are the ones who sold subprime to foreign investors/domestic knowing that they were worthless assets. The CEO's of these companies screwed everybody over so they could make lots of money quickly and then resign. BOA for example, CEO quit after the subprime bonuses filled his pockets.

We need to regulate such things.

Do not reply to me if you are going to not relate to the conversation.

[PontiffMystic]

It wasn't just CEOs, it was the whole company, the board of directors as well. As far the assets being worthless, they weren't worthless with low interest rates. It only became worthless when Alan Greenspan raised interest rates. Just like the economy is on life support right with low interest rates, sudden changes in interest rates can create more volatility. Even Milton Friedman, a monetarist criticized interest rate policy of the Fed, and called on for an ideal interest rate that is fixed.

[PontiffMystic]

That's the concept of a boom, and bust. Things look good during a bubble, and loans are doing good. More regulation isn't the answer. If the banks should be allowed to fail for doing such foolish things. I just don't buy the too big to fail propaganda, because even small banks were bailed out. CEOs are chosen, and reviewed for their performance by the board of directors, so don't try pin this on the CEO. There is plenty of blame to pass around. Many factors that contribute to economic conditions

[Anythingwilldo41]

"It wasn't just CEOs"

Exactly. You agree that CEO's were part of it, therefore we need some regulations to keep this from happening again.

[LibertySteve]

Oh yeah, we need regulation. Self regulation. Less ego centric opportunists saying "I want this guy to behave this way." And for people to pull their shit together and start thinking, "How should *I* behave." No government can do that. It is a cultural phenomena differentiated by wether people look to others to satisfy their needs (like government), or they take responsibility for themselves.

Anyone relying on someone else to make things right for them is going to get fucked eventually.

[Anythingwilldo41]

.....

[davincij15]

Anythingwilldo:

Regulation is required because of HOW the monetary system works right now.

In a hard money system, regulation is not required.

Under our current system where banks can create as much money as they like, regulation is required. Under this monetary system a CEO of a widget company can create short term success to increase his compensation at the expense of the companies long term viability.

Thus there is a question unasked I plan to answer in my next post.

[davincij15]

Once again I agree laissez-faire capitalism is impossible under this monetary system. Regulation is needed to keep criminals from doing bad things with it.

Virtually all of those regulations setup in the 30s are now gone.

So as for the question unasked...

Why do we have so much criminal CEOs and business men that can be successful without crime?

The answer is simple, most people call them greedy, and get the government to tax them for doing such a good job. So by right they do the same.

[davincij15]

anythingwilldo41:

By that definition if you have worked to obtain anything that someone else does not you are greedy.

Thus if you want a boat and save money to save it the moment you saved more than anyone in the world you are greedy.

This is not logical.

Don't you agree?

[0urGaia]

Its "desire" that should have been used. Instead of desiring to be one with god we instead desire glamorous cars, cloths, game-boys etc etc etc. You cannot have both as they are contradictory to one another.

[fal2grace]

good point:)

[davincij15]

fal2grace:

If I steel to satisfy my greed then that is evil. If I build something that many others want but few can afford am I being evil?

[fal2grace]

I think we're just disagreeing on the definition of "greed"... i think of greed as wanting to take what others have... maybe you have a different idea in mind. peace.

[davincij15]

1% of the population have 20% of the wealth and 20% of the population have 80% of the worlds wealth.

Now of that 20% what number understands that paper is not money?

Well put it this way I know 7 people well enough to know they are in the top 20% and of those people none of them understand paper money as I do and only 2 of them I was able to convince to buy gold and silver that only one purchased physical. The rest own stocks, bonds, real estate and lots of cash.

[Anythingwilldo41]

1% has 40% 5years ago.

I'd imagine its worse now.

Simple mistake.

[davincij15]

I stand corrected.

[SilverRose09]

Berni,

The marketing in USA is so diabolic, planned and persuasived that knows very well how to get you. Humans, we are such weak and fool creatures...

[aw3212]

I agree with the theory that credit is the one with excess sharing with the one without, BUT, banks did not have excess, they were not the good guys sharing, they created money and credit out of thin air - then when it went bad the Fed Reserve did the same thing. Banks win either way, execs make millions, they enslave the creditors and if they fail, fine they fold the tent and go erect another one somewhere else. So personally I dont feel bad for consuming with fiat currency/credit.

[masterix6]

Great effort at explaining!

[LisaJ4Liberty]

I like your analogy to the snake. I think if there's a god who sits on a cloud somewhere watching all this play out, he's got to be shaking his head and thinking: my people/creations KNOW that gold ought to be the money, so how long is it going to take them to behave themselves and stop screwing around with credit and fake money. Oh, well, just like parents with little kids, I guess god has to sit back and let us fall on our faces over and over. Maybe he finds it all entertaining.

[Bernd1964]

I don't think that (fiat-) money is a creation of God, it's an invention of western culture. Money creators don't serve God, they are merely a product of western culture. The industrial civilization is not sustainable because it is based upon the idea of eternal economic growth on a finite planet. The properties of debt based money will be a major course for its final demise. If humanity should have a future after the money culture and consumerism at all, it will be one without fiat money.

[modelmark]

How does credit create extra means of production? Credit is different from saving and borrowing, right?

Some people say:If projects A,B and C can be done with the available funds for borrowing, then by creating credit D, E and F can also be done. I don't understand this, because the creation of credit, did not make more capital goods available. You only have more entrepreneurs who think (because of credit) they will have control over a crane that is not available.

[PayChkSlaveRebellion]

Judiasm, Christianity and Islam prohibit Usury because its evil, and promote Gold and silver as real money.

The current economic system is corrupt, the risks are uneven, and greed is prevalent.

The oligarchy uses money to enslave, monetary debt is a form of bondage to the Zionist (not Jewish) bankers.

This system will fall, it will take time, but the process has begun.

Peace

[MatrixAntidote]

The core distinction is between usury (i.e. lending at interest with no risk involved for the lender) and an investment (i.e. putting in money into an enterprise where risk is shared). The first is, essentially, a parasitic model, the other is not.

[cuzimfrombk]

NICE

[powergirl901]

"sharing for the community"...I don't believe that people created trains and communities around trains for any public good. Mostly as a result of trains, only a few became super-rich.

That seems to me to be the real goal in the first place by the industrialists and bankers.

[4rcane]

i thought, all religion view USURY as a bad thing, which are basically giving loans with interest

[4rcane]

Which I think means, fractional reserve banking is a sin

[jberni1]

Well, I want to get away of saying "a system is a sin" it really comes down to that the fractional system is a "promotor of sin" as its pillars as of today depend on ever growing credit

[PontiffMystic]

It's not that fractional reserve banking is a sin, it simply doesn't work. That is why the entire world a similar system with differing systems of a central bank, and commercial banks together in a conglomerate along with FDIC style government entities. Mainstream economists believe that fractional reserve banking is beneficial for economic growth. If you look at the opposite, it is full reserve banking, and virtually none exist except for a few that claim to be around the world.

[PontiffMystic]

Correction - "That is why the entire world has a similar system with differing regulations of a central bank, and commercial banks together." The Central Banks has come regulatory control, as well as government legislation. Fractional Reserve Banks are basically hardcore juggling acts of assets (such as loans), and liabilities (such as deposits, borrowings). It just doesn't work, and without the Fed, or the government, no way this financial institutions empirically would of got too big.

[Cneumann22]

Great metaphor - I got it.

[drchiodo]

He's suggesting that people should be more discerning with money. Jew/Christian speak much about this. It's not somebody else's fault for ALL your troubles. We must take personal responsibility for ourselves. When we don't; there are often victims across the board. You can prevent this by being very fiscally conservative regardless of the macro economic situation, generally.

When people want, and want now, without the wisdom to understand the actual cost; they only fool themselves.

[drchiodo]

Many mock such metaphors but, what they fail to see is the relationship between entities that he's discussed on the video.

[drchiodo]

I thought it was worded very well actually.

[Danster82]

firstly the biggest problem with our financial system is NOT people spending beyond their means, this situation has been forced on the consumer, if you want a house or even rent you need to pay what the market is paying which is inflated prices because of infinite loaning from banks therefore your forced to borrow so you can have a roof over your head.

Secondly God said never engage in usury, but most importantly only loan what you have already earnt, banks loan what they have not earnt.

[jberni1]

EXACTLY

[PontiffMystic]

Nothing wrong with lending as long as it is prudent Danster82. The banks are the ones who bore most of the risk in the housing boom. The problem you seem to be referring to is that of fractional reserve banking, which allows banks to lend with other people's money, instead of their own, which allows them to have a much bloated balance sheet. The profits they earn are theirs from your money. Unfortunately, the Fed System is the standard for Fractional Reserve Banking.

[Danster82]

Fractional reserve banking does not allow the banks to loan with other peoples money, I can assure you this is a miss understanding on your part.

Read Modern Money mechanics.

Fractional Reserve banking allows banks to create credit via accounting alone, this is because they have a legally binding contract as a promise from a person to pay it back, this promise is the banking behind the credit created. Therefore the banks never bare a risk because they never earnt what they loaned out.

[Danster82]

If i make a loan to you and create the credit you required with my computer, put your promise to pay note in my safe (which is the real wealth) my networth is up the amount you just borrowed from me as a debt asset, now if you fail to pay it back I have made a loss as far as the market is concerned, but wait... did I really make a loss? when you come to me for the loan I had nothing, when you failed to pay back I still have a nothing?

So you see its the power to issue credit which is the....

[PontiffMystic]

A fractional reserve bank gets 100 dollars, and has a 20% reserve requirement, it will only store 20 dollars of that 100 dollars, and what is left is 80 dollars, which it loans out. The loan provides liquidity, or money creating money. Stored money is not part of the money supply, or money in actual circulation. That's where money creation comes from. Banks require a minimum deposit, and gain profits from liquidity, that's where it begins, and that is why no fee is necessary in a sense.

[jberni1]

Well actually the bank can lend out 500 Dollars in this case. 400 it creates out of thin air, by simply creating an entry in the contra account

[PontiffMystic]

What are you talking about Danster82? That is why the FDIC exists. I asked my mother about the banks, she told me that if the bank can't pay you back, the government will, and I don't believe that is how it works. Electronically, money is transferred. If you write a check to a deposit, that deposit increases, while yours decreases. The main point is there any money backing up such transactions. That's what fractional reserves is, no matter with gold, and bank notes, or paper money.

[jberni1]

One has to differentiate cash transactions and deposits.

The banks usually have a cash reserve of 2-3% of deposits. Deposits usually are less than a fifth of total assets - Equity

[jberni1]

And the best is that banks don´t even need to pay interest on the money they create

[PontiffMystic]

The government obviously encourages consumer credit, and consumption. Bush gave stimulus money to the consumer in expectation to spend it, which Obama as senator supported. It's obvious that the Fed, and government are partners in encouraging consumption with low interest rates, stimulus programs. The problem is that there was too much consumption. Government also provided incentive like Fannie, and Freddie, even lower lending standards. It's really foolishness run rampant. Compare USA to China.

[frenchy137]

Fractional reserve banking dont only let the banks lend with other people's money... It lets them lend money they created out of nothing when clients sign loans contracts. (Assuming they maintain 10% reserve that is)

[143DREWID]

Forced upon the consumer through wage restrictions. Income has not matched inflation of the fiat currency.

Therefore, savings for large purchases ceased effectiveness

Others factors as well, you know

[nmreich]

Lending MUST be INTEREST FREE or you will end up in a situation where there ISN'T ENOUGH money to pay back the interest - unless MORE people go in to debt.

[nmreich]

I'm referring to the Central Banks here. The ones who produce "money" out of thin air.

[carlosjhr64]

Might work better if you say man created money... it really is our invention. The way I think of credit, classically, is that the person (or group) providing credit assumes the risk -- the contract needs to best understand this risk spelling out how failure should be handled.

You're arguing consumer credit creates debt slavery - OK - the "masters" need to have control of the money supply to succeed in this most evil plot - muhahaha-ha!

[jberni1]

That is true. I just realized I should have said "gave them money"...once I had it finsihed.

[pentel1911]

people aren't tricked into running up debt. the banks, just like drug dealers, have a product; each person decides for themselves if they want to take it for a spin. of course, after that first try it becomes easier and easier. but the decision for giving it a try initially stems from some form of weakness. people aren't victims for running up credit card and mortgage debt, they're fools.

[PontiffMystic]

It isn't just the banks pental1911, it's the government too. George Bush said spend your money, even Obama said that. Consumer debt is what fueled the consumption binge. Well biblically, God didn't give man money. Man became intelligent when he ate the fruit of knowledge. This is obviously referring to hunter-gatherer transitioning into a cultivation, mass production man, thus creating capital, and wealth, which can be called excess. Thing is credit runs things these days, old fashioned savings.

[jberni1]

Obama says "spend your money?"

What do you think about him, then?

[PontiffMystic]

I don't think much of Obama honestly. I think he is a fool. He is pretty much the same thing as Bush except for minor differences. Consumption has actually increased to 71% in the share of the US economy. Things like Cash for Clunkers, etc encourage it, and encourages more debt. Obviously this shows consumption is taking over, while the manufacturing is deteriorating. By no means there is no sign that the imbalance will be corrected in a stable fashion that is. I am a amateur at economics.

[LisaJ4Liberty]

"What do you think about him, then?"

jberni, I don't know a single person (in my real life) who doesn't think Obama is a joke. And plenty of them voted for him! The only people I see who say otherwise are in the mainstream media.

[DavidAKZ]

he is the monkey. Who is the organ grinder though ?

[jberni1]

Well, the snake did not trick eve?

My professor at business school actually believes that the banks tricked the consumers inside. He said "I believe the bankers met somewhere and than made a plan to convince people to max out their loans"

[143DREWID]

Is not that the oligarchy.

Same financial act has occurred repetitively.

Fool me once, shame on you

Fool me twice, shame on me

The masses have chosen to not look, before the leap.

[aw3212]

yes jberni, but the banks are going to be the ones left holding the empty bag, because people are walking away from debts: some by choice, some by necessity.

[nmreich]

If we had an HONEST money system, the banks would be BROKE. But because we have a DISHONEST money system, the PEOPLE are broke.

Fractional reserve banking coupled with INTEREST bearing fiat currency = PEOPLE are screwed, and banks seize the people's assets.

Once you understand our money system you will realize that there isn't enough "money" to go around (because of the interest taken by the banks). The people ALWAYS loose.

[PontiffMystic]

Contrary nmreich, high interest rates encourages savings. If money is expensive it outprices borrowers of the lowest denomination, and lending standards have to be strict to minimize delinquency, but yeah fractional reserve system can ruin savings of people, that is why bank runs occur, because people know their money is gone. The consumer is just as guilty for taking out loans they can't pay off. Savings is the only real sustainable alternative. China is a nation of savers top down, USA not.

[nmreich]

Pontiff,

Nevertheless, regardless of the interest rate, as long as it is ABOVE zero, then there won't ever be enough money to go around (eventually). It is a classic pyramid scheme perpetuating debt on an exponential scale.

[PontiffMystic]

High interest rates is a strong dollar policy. Hence why the US dollar is depreciating on top of spending. The dollar isn't depreciating by shrunken GDP, or anything like that. It's loose monetary policy, and spending. There is no real deflation threat, or "liquidity trap". The money is printed, which is inflationary, and interest rates, and other things are tools for controlling inflation. Paul Volcker did that to control inflation from 70's to the early 80's.

[PontiffMystic]

Also interest rates grow more credit. This means more loans available. Also high interest rates makes things cheaper. The higher the interest rate, the cheaper the overall cost of something. Low interest rates means increased demand with easy money, and thus with the dynamics of supply, and demand increases prices of things. I personally see nothing wrong with interest. Interest is risk assignment if the loan goes bad, that is how banks prevent decapitalization.

[PontiffMystic]

Personally, I am antiloan kind of guy, and anti-credit, but taking out a loan is ok if it facilitates savings. I personally prefer savings. Just as inflation can increase prices, savings can reduce prices, because the demand for money becomes stronger, and your saved money appreciates in value. Deflation is not a threat. People misconstrue deflation with liquidation. Liquidation is something that simply can't be stopped period, and just means things are unproductive to begin with.

[watcher0777]

the serpent beguiled her, that is used her desire to lead her to an intended result, which like the title and theme of your vid was evil. the banks used the politicians to manipulate the playing field, as the politicians manipulated the banks for their own designs. the community reinvestment act is an example. the advertising, marketing of the products to entice the consumer economism/globalism dynamic where the bubble gets bigger and is good for cream taking. fraud, false balance=abomination

[oleskoollover]

The Bank is the serpent!! Got it!

[DavidAKZ]

yes, in my case it appears as a frumpy snake.

[ShillBasher]

I personaly prefer your technical analysis but I appreciate that not everyone is up to speed on this subject so I understand why you've gone back to basics.

Any thoughts on whether or not we would expect some bad news in January regarding high street xmas sales?. Personaly I believe the figures won't be very good and this will start a 2nd wave of job losses and mortgagage default and property price decline.

[jberni1]

Bad news will come 1 week after German gvt. coalition is in place.

to be sure, just take a large enough time frame. So between now and May 2010.

[aw3212]

could you be more specific with this comment?

[jberni1]

If I could, I would.

But clear is that:

Tax income down, deficit spending up, gvt bonds down. => liquidity down, banks down, asset price deflation, huge unemployment => money printing => inflation => interest rates up

[1959flynn]

Thank you for posting such a meaningful thought. It is now the time of atonement!! Please keep your good words coming!!

[winbri5]

Whether you believe in God or not, at this point , I feel he is the only one who could straighten out this mess! Very Nice Video!

[NibiruMagick2012]

You got it.... Thanks for your hard work.

[jailarson]

If God created credit, I think his intent was to see if we were stupid enough to actually use it. Same goes for eating hemlock.