Matthew they don't teach it in schools because then the whole scam would be revealed - School is an Indoctrination system they only teach us what we need to know to go out to the world and work for the Industriul system.
I love to watch this video again & again. It must be watched by everyone especially children's as it will provide them a terrific knowledge on the history of money.
Survival of the Fittest, we are forever slaves too it. Our only HOPE, our only peace, is too understand the WHY. Why is what seperates us... Them from us, you from me.
i love how people think this is bad while its just the execution of a for-ever-lasting rule in ANY system; the rule of "Survival of the fittest". This fictional money doesnt harm anybody, exept those that really made bas mistakes/are at the downside of the pyramid. Even if that downside of the pyramid would be 1-million buck-people, they'ld be poor cuzz they're down, and thats that.
Another interesting aspects is rents, the fact that you have to pay more back than what you orginally rented is a tricky idea as it means all the money will eventually end up in the bank.
But wouldt all the fictonal money that is made eventually cause a huge inflation?
when the guy wants to buy a car and bank are creating money, allowing him to buy it, bank is also having the responsibility of the DEBT, that means there is a 10.000$ debt hold by her, therefor money has been created in exchange of holding a debt, which is fair... not only bank but you and me or anyone is able to CREATE "MONEY" (money as paper with value) just a contract that I will give you a car can be exchanged for anything of same value,just as money ! ... MONEY IS AND HAS ALWAYS BEEN DEBT!
@fannybaba 1) God gave land to everyone 2)Greedy people stole this gift 3)Enforced the theft with violent military occupation 3)Imposed shackled slavery on the earth to increase the wealth of the greedy, 4) created a system by which a person must have a land lord, or agree to be a slave for 15-30 years to be able to afford the land. In case you have not noticed most land and homes cost over a hundred thousand dollars, good luck buying this and paying taxes, it requires slavery to make payments
@HealingVibrations The government actually owns the land. You are paying rent when you pay property taxes. Don't believe me? Who do you pay to? County sheriff. What happens if you don't pay? You get evicted, out on your ass, by the landlord, the government. That is the sad truth. The mortgage tax deduction is another trick to get you to pay more to the elite bankers. You think someone else is paying. Sorry, you are, sheeple.
Well in the very first quote I want to say Woodrow Wilson was a big socialist worse then Obama, his quotes hold no water with me. he tried to transform America just like Obama is doing. Wilson didnt win and neither will Obama...
@leespatch yaaaaaawwn, again, and again. Do your research, by studying from all perspectives, before such idiotic claims: "Capitalism... is the only system that rewards work over idleness". If your theory is right, then I guess that as soon as you stop giving banknotes to the hand of people they turn into a vegetative state automatically.
@leespatch yaaaaaawwn, again, and again. Do your research, by studying from all perspectives, before such idiotic claims: "Capitalism... is the only system that rewards work over idleness". If your theory is right, then I guess that as soon as you stop delivering banknotes to the hand of people they turn into a vegetative state automatically.
@leespatch The tragedy of the commons is a load of bollocks that capitalists use as an excuse for their greedy ways. Its Writer Garrett Hardin has admitted that he got it wrong and actually retracted his thesis..It has been criticized by many who know better about human nature. The truth is that People who have a stake in something that will look after them, will have the sense to look after it!
Do not do business with the NY banks. Do business with your local credit union. Get your credit card through the credit union or some small bank. Do not live in debt slavery. Buy or build a cheap house you can pay off quick or not owe on. If you can't save up the money for a purchase, then how can you pay back more in the form of a loan? Think people think. TRue, True
@timetopk Clearly he means state schools. You know... the schools you go to from the age of 4 or 5 up until 16 - 18 depending on which country you're in. What you're suggesting is some sort of college course that you go to and choose yourself. In SCHOOLS they teach none of this for a reason.
@timetopk No. A college is a college; a school is a school. He's clearly talking about the mandatory part of education, i.e., SCHOOL. College is not mandatory.
@digitised There is no point to continue this conversation if you won't admit your error here. Deflation is a drop in prices of goods and services. This means that the purchasing power of the currency has increased, (the currency buys more). This is a fact. Your description of deflation is actually the definition of inflation. I don't claim to know it all, but I know when I am right.
HOW ABOUT THIS WE GO TO THE BANK YES WE AND THE BANK CREATE NEW MONEY WE GET £10.000.Say AND THE BANK GETS £10.000 SAY .ALL AT THE SAME TIME ON THE SAME DAY..NO ONE OWES..NO ONE..WE ALL GOT OUR MONEY..AS WE CREATED IT.SO THE old WAYS OF BANKING OUT OF Dated.ALL BANKS AM going uder.UK GOVERNMENTS AT TO BUY ALL THERES AND EU AND USA ....AM LIKE GREASE BANKRUPT NEARLY..ITS GOING TO BE A BIG WW3 THATS Y THERE WARS SOMETIMES TO START NEW WORLD ORDERS AND THE ANWER HERE WITH US
HOW ABOUT THIS WE GO TO THE BANK YES WE AND THE BANK CREATE NEW MONEY WE GET £10.000.Say AND THE BANK GETS £10.000 SAY .ALL AT THE SAME TIME ON THE SAME DAY..NO ONE OWES..NO ONE..WE ALL GOT OUR MONEY..AS WE CREATED IT.SO THE old WAYS OF BANKING OUT OF Dated.ALL BANKS AM going uder.UK GOVERNMENTS AT TO BUY ALL THERES AND EU AND USA ....AM LIKE GREASE BANKRUPT NEARLY..ITS GOING TO BE A BIG WW3 THATS Y THERE WARS SOMETIMES TO START NEW WORLD ORDERS AND THE ANWER HERE WITH US
Well all my monies are going to be pulled out of the bank and into stocks...even though stocks are rigged...i get ahead 50% chance of making money more or less....better than them investing with my money
Once the world gives up on the united states in the future, all the rich people with gold and silver are gonna go to china or some other stable country because the US will become unstable with riots? gangs of outlaws and the country will be ruined. GOLD IS ALWAYS GOOD IN ANY COUNTRY
The opening quote attributed to Mayer Anselm Rothschild is an error. It was actually stated by Mayer Amschel Rothschild. Perhaps this was just a spelling error, but to begin an informative piece like this with mistakes greatly lowers their credibility.
Do not do business with the NY banks. Do business with your local credit union. Get your credit card through the credit union or some small bank. Do not live in debt slavery. Buy or build a cheap house you can pay off quick or not owe on. If you can't save up the money for a purchase, then how can you pay back more in the form of a loan? Think people think.
@gringott12 I'm all for small banks, but did you know that credit unions are considered non-profits (even though they clearly make profits, especially the presidents) which means they don't pay taxes. At least small community banks pay taxes which go back into helping the community. But I definitely say screw the NY banks!
@rickopotamus78 My credit union is member-owned, and we vote on the entire leadership of the credit union each year. In addition, we have means of making our feelings known as to how we want the credit union to operate. For example, in 1994 I got a small mortgage to purchase a home, 15 years, 20 percent down, the lowest rate in the area. The credit union held the mortgage until I paid it off. There may be bad credit unions, but mine is not one. Screw the NY-Euro banks & the Fed.
Who said inflation is in check? inflation is the reaction when more and more of something of value is in circulation. For example the price of oil should decrease if more of it is obtained. Like when we discover a new oil reserve the price per barrel should go down. the more rare something is the more value we give it. Now ask yourself how rare is it to find a one dollar bill? Not rare at all therefore it is worth less. Inflation isnt in check. What rock are you under?
@Jononutoob ok then why dont we experinece hyperinflaiton like in some countries like Zimbarbe ( sorry about the spelling) went bank can virutally print unlimited amout of money
@Jononutoob Zimbabwe inflation got so out of hand, it was cheaper to wipe your ass with a $100 Zimbabwe note than to buy toiletpaper with it. Shops were changing item prices sometimes twice a day. They started paying people daily, because tomorrow that money is worth nothing. They printed new currency and ran out of space on the notes for the Zero's I recall they had a 100 billion $ note. Now they are using US $ ans SA Rands as currency.
@Jononutoob Dollar bills have value so long as men agree on them as an exchange medium. They are not worthless. Inflating the supply of these notes undermines their integrity as an exchange medium, which is bad.
People only believe in the dollar because if the dollar fell the world would fall apart. People are backing the dollar and euro because they have no other choice. On the dollar it says "In God We Trust" well god is a big spender huh. Imagine if the treasury made our money.
@Jononutoob The world would definately not fall apart, but life would definately get worse. In these circumstances, people start resorting to spending any money they get as quickly as possible, to reduce the time that their wealth is devaluing. They start to use other trade media, such as metals and direct bartering. These all reduce liquidity, hamper trade, and thus slow the economy. The only solution is to prevent the dillution of the currency, by law.
I agree with everything you said except the world not falling apart. After Rome fell the world was chaos. After Greece the same. After France and England the dark ages. It is debatable so I am not saying your wrong. Im just saying from the pattern I see this has happened before and ends with near chaos. The world I see is fragile beyond belief.
@badpanda84 Yes but this 'money' the banks create, through lending, or 'money that is debt' as these videos talk about, is backed by the assets which the debt purchased. Productive assets are superior a backing to money than say, gold is. If the bank puts too much money into debts that are not backed by productive assets (i.e giving out bad loans), then the bank risks failing due to defaults. There is nothing wrong with a state of perpetual production debt, only too much consumption debt.
I always have a hard time to fully understand the whole money system. For me this was a very clear and understandable way to describe. Thank you for making this great video !
Thanks to Paul Grignon for making the DVD set Money as Debt I & II. It is a good primer for people just learning the truth about money creation. There is plenty of background information posted at the blog - The UsuryFree Eye Opener. Do a search for it at any search engine, bookmark it and use the resoruces posted there as learning and teaching tools.
Money, whether backed by gold or dirt, is still a noose around your neck. Inflation wouldn't affect the currency as much but you'd still have those that have a lot and those that have nothing. You'd still have paid slavery.
@residualwealth fair money not attached to debt,eliminating the monopoloy of the bankers,who create money out of nothing and then make us work to pay it back,would mean prosperity for everyone.
Without supporting these pqarasites who steal 95% of OUR wealth there would be4 plenty for everyone.
If you want some heaven without working for it,there is only one way out.
@die What do you mean by 'fair money'? From looking at known history, even if we got rid of compounded interest (ribba), fiat money, high taxes and perhaps raised the bank's requirement for reserves, we'd still have many of the same problems driven by the need for profits/money. How do you propose we eliminate the root cause and not just some of the symptoms?
A non-interest money system sounds decent but you'd still have the problem of people slaving for money and things. Part of the other problem this video doesn't touch on is profits. Companies routinely fail to do things, however pragmatic or logical, simply because it's not profitable. People lie and cheat for profits. Needing less profits doesn't change that. Why not just get rid of money, profits, interest, inflation and credit completely?
" I believe Banking Institutions are more dangerous to our liberties than standing Armies.
If we ever allow banks to control the supply of money first by inflation then by deflation, they will deprive the people of all prosperity. Until our children wake up homeless on the land their fathers conquered"
"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
"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."
@foxygabriella to hate is just not enough. see, the important thing is that we (the people) now know their MOST FEARED weakness. want to beat banksters at their own game? get rid of your credit card. buy gold instead of parking your fiat money in your bank account. do not take any loans. avoid mortgages by renting or leasing a house, so you can buy it in cash later.
In short, 90 % of all money in the world is a hoax and if more than 10 % of if was asked back from the bankers, for loans, materia and real estate, the Capitalist market economy would collapse.
If people took their money out of banks and used cash they system would be forced to change. Eventually we have to get rid of money, banking and credit completely.
I agree that cash is an IOU but the point of taking your money out of the bank is so that the banking system would collapse. Once the system collapses it would be up to us to implement a better system. I propose a Resource Based Economy. I think we're all mature enough to deal with reality instead of the illusions of credit and debt.
in an ideal world with"power to the people" that would work, but most of us get paid (in credit) by the company we work for...and then the credit goes out to pay direct debits for bills etc...we are truly slaves to the system. It is so sad,yet I believe unreversible. I grew up in my father's restaurant and saw year after year his long life hard work go to waste due to the big companies who "work the system" take control of every bit of the industry,and this will happen everywhere in any industry
@cam Your words are of defeat but perhaps you don't realize that it really is your unfounded disbelief in your actions that cause your defeat. Washington Mutual et al went under because people pulled their money out. That's the real world not a fairy tale. Millions of people (& likely your father in the past) pay their bills with cash or money orders. You Do Not Need Plastic. Our parents didn't & if enough commit to this boycott the system will fail. Believe You Can Win
Contractions in the money supply or credit are used so the rich can acquire assets easier but banks can not operate unless they have deposits. Without deposits they lose the ability to extend credit which is a banks primary source of revenue. Without money in 401k, CDs, SEPs, IRAs, IULs, Savings/Checking Accounts, etc banks would fall like dominoes. But the people must not be duped into backing a similar system.
@teemuruskeepaa No the money is not a hoax, that 90% actually does exist, its just not sat in your account gathering dust. Its just doing other things, like building houses, hospitals, paying wages, buying holidays etc
That 90% goes back into the system where it creates more opportunity for society, it grows economies which directly increases GDP.
GDP is the measuring bar of a nations quality of life.
You are being mislead by conspiracy theorists im afraid!
@digitised That 90% once loaned out is recorded as a liability in the account.
It must be paid back and is given a timeframe usually such as a mortgage or HP deal for example. The bank is liable to the customer for that money, it absolutely exists.
Maybe try reading up on this subject from good economics books and not the scare mongering of videos like this.
@digitised Did you watch the whole movie? If you did you would understand that in order for the economy to grow, the debt must also grow along with it. Under the Federal Reserve with its fiat currency and the fractional reserve banking sytem, we can never get out of debt. Thomas Jefferson warned about this very thing. This is not "scare mongering" . And if the Fed is so great for prosperity why do we have 13 trillion dollars in debt which can NEVER be repaid?
@thinkertank1 Yes i have seen zeitgeist all the way through.
You are being falsely told in this section that money is created by a process which creates debt. This simply is not true and i would be happy to explain it on msn, or you could look up money creation from other sources such as academic sites, textbooks or simply phoning up your local universities economics department and speaking to a professor.
13 trillion dollars debt, refers to the national debt, dont confuse yourself further.
@digitised Apologies this isnt the zeitgeist thread, sorry ive had a lot of people talking to me about that. Yes i did watch this video the other day.
I sympathise with people who watch this and think its correct.
Yes it largely is in mechanical terms..but its not what you think. Its far more complicated that what is presented here, and most laymen, even smart maths guys, cant always grasp the key concepts right away.
Money is not wealth, money is an abstract unit which represents wealth.
Wealth is what exists in real terms.
Now if i create money, i can use that money to produce more 'wealth' ie units of a product or service. More than what existed previously.
By borrowing money i can add to societies output (GDP) thus creating additional wealth. Without borrowing, society has to trade all which exists and struggles to grow at all since all wealth is effectively capped.
@digitised The Fed creates money out of nothing. They create paper, (bonds), which they sell to people with a promise to pay interest. this isn't wealth creation. The product they created was paper and the people are FORCED to pay interest on it. The bond holders collect the interest on their bonds sure, but all they did was cooperate with the fake "money" creation of the Fed. Investing in stocks provides capital for a company to grow but these bonds are not a way to create wealth.
@thinkertank1 But the fed does not keep the interest. It keeps a tiny slice for operational costs and the absoltely tiny amount it pays out in dividends to private individuals. The rest of its earnings are put back into the national treasury for use in public investment...conspiracy theorists always forget to tell you that.
They normally tell you that the feds profits are paid to the jewish elites, or the reptilian overlords, along with the gold which doesnt exist in fort knox.
@thinkertank1 You have got this quite wrong, the fed does not create/issue Bonds.
It buys bonds from the government, creating new base currency, this is an inflationary mechanism for creating liquidity to finance all manner of projects.
Base currency can be decreased by the fed SELLING bonds thus taking money out of circulation. Understand?
This is all part of the open market, and you clearly are out of your dept here im sorry to say, its really important that you sort this out for discussion.
@digitised Yes I made a mistake in what I said. The Treasury creates the bonds in exchange for Fed Reserve notes. The Government then forces the people to pay interest on those bonds. My main focus however is the practice of fractional reserve banking and fiat currency. Both these mechanisms are not needed for a healthy or functioning economy.
@thinkertank1 I would stress you are incorrect, but it depends on what type of society you want to live in.
Fractional reserve banking will create money, which in turn will generate additional wealth year on year. This is directly linked to QoL (quality of life) since more goods, lower prices, more services etc means we have better lives.
Also the currency grows with the population, so future generations dont get smaller slices of the same cake.
@digitised Quality of life is dependent upon the natural resources available to the people and the technological advances which allow for the more efficient production and use of said resources. It is freedom and true free markets which drive prosperity and wealth. The U.S. became the most productive country in the world by the late 1800's, without a central bank and without massive national debt or personal debt.
@thinkertank1 Hehe resources are important. But why would i want to bother digging up iron?
First someone has to employ me to extract iron ore, this means someone has an industry for forging steel and is supplying a market of steel products. This market is driven by what people want to buy with their money. If people are limited with what they can spend then im afraid I dig up less iron, and that industry produces less. Meaning i earn less and do less.
@digitised If people want it, and people need it. Give them the ability to buy it and the process will balance out once the loan is repaid. We not only get the steel products, but we get more of them, at lower prices, and we manage to innovate since more people with more skills are involved, who find better ways to make steel goods.
@thinkertank1 The US used fractional reserve banking long before the late 1800's.
But private banks as i have explained are always at risk of collapse, as well as people not always accepting or even RECOGNISING the banknote of some banks.
A central bank is there to offer support, i dont know why you personally object to that?
I hope its not the conspiracy crowd filling your head with silly ideas, but central banking is a lifeline to peoples, savings, pensions and their employers.
@digitised I object to the idea of a central bank setting interest rates in order to increase or decrease the money supply. It is the Fed which has kept interests rates artificially low, and contributed to the recession which is now upon us. In fact Bernanke even admitted that it was the FED which caused the depression. We have been operating under a "buble" economy for quite some time because of the Fed. But I have news for you, there are no more bubles to inflate, the game is over.
@thinkertank1 Okay im going to ask you to seriously spend some time reading up on macroeconomics. You are honestly blundering through most of this making quite outrageous errors that would make even a 1st year econ student feel awkward.
"In fact Bernanke even admitted that it was the FED which caused the depression."
Just to let you in on a little secret...(thats been academic and public knowledge for 50 years!..shhh). Freidman and Hayek were writing about that before man walked on the moon.
@digitised I'm not blundering, I just figured you must be ignorant of that fact since you are so willing to defend an institution which admits that it caused millions upon millions of people to suffer. These people laugh at us and you want more of it. This new financial reform bill has given even more powers to the Fed and I suppose you have hope now that all will be well. The Fed always acts in the interest of the Fed and not the people.
@thinkertank1 The fed is independent, because it needs privacy to handle sensitive problems. Dont you understand that if governments or the public were involved that people would abuse information to gamble, invest, cheat and sink companies?
There are very strict rules in the financial system, it is also the backbone of the US economy so if it needs help it needs it confidentiality.
The fed does not keep any profit, so how is it self serving?
@digitised The Fed is self serving because its policies are directed at benefiting the interests of the entire U.S. banking system and not the people. This video explains the fact quite well, that in any country which has a central bank, that only ONE BANK actually exists. This makes sense since it is the central bank that sets interest rates. I am for ending the central bank model completely, any thing less would be a disaster. If the government ran the Fed we would be in even worse shape.
@digitised If we had a stable currency which could not be devalued, we wouldn't need to worry as much about investing our money or worry about our life savings being wiped out. You quite litterally could just save your money in a safe, and 30 or 40 years from now it would still have the same purchasing power as now. Under the current system it would be insane to do that. Because of the Fed's inflationary policies, we basically have no choice but to put our savings at risk. This is some lifeline.
@thinkertank1 But you dont have to worry about your savings.. your money goes into a bank account where its immune from inflation (because inflation is always lower than the interest rate paid into savings accounts). And to top it off, if your bank cant stump up your money, the FED quietly gives it to your bank... to give to you.
This is why the system is fine, your money GROWS over time. Inflation targets are about 2%Pa, whereas savings accounts pay at least that if not 3-5% above even today.
@digitised Oh and the useful purchasing power would likely increase, not that purchasing power should ever remain fixed (!). Prices fluctuate all the time, usually they decrease for luxury and necessary goods.
E.g a pretty awful 20" TV 20 years ago cost about £500 in the uk, (when my mum earnt £2.50/hr), now a good 32" LCD costs £500 where min wage is £5.85/hr.
If you calculated the real wage and real price, you'd see an increase in purchasing power due to technological innovation.
@digitised There are several variables to consider in your example, where the TV was made, how much was the worker paid to make it, the classic law of supply and demand, etc....The only useful example is "cost of living". Can I sustain the same standard of living now on the same wages I earned 20 years ago? No. I won't argue that some items become cheaper over time, but overall the cost of living increases.
@digitised To say that the cost of living increases over time only confuses people. Those things which sustain life don’t become “more expensive” or “more valuable”, but we are required to purchase those things with more units of currency, because our currency has been devalued. Prices don’t go up; fiat currencies just become more worthless due to the policies of central banking and the countries which collaborate with them.
@thinkertank1 Gold backed systems will still issue banknotes, so you wont eradicate the problem of disproportionate paper to gold. You pretty much tie yourself down with investment too, since you make borrowing expensive. There will not be enough money to finance mortgages for example. So get used to working until you are 50 to buy your 1st house.
The population tends to borrow a lot more money than what exists, and government will likely crowd the market out every other day of the year.
@digitised At least a bank note backed by gold can be exchanged for an actual product which is traded on the free market. Those worthless Federal Reserve notes are backed by nothing, which creates a massive moral hazard to our country through constant expansion of the debt.
@thinkertank1 The banknotes are backed by faith in both cases.
You still never have enough gold, and there really is nothing to stop bankers printing up more notes than money.
I dont understand this "constant expansion of the debt" i know these movies/websites/theorists always make claims that all money = debt, but this is a half truth because they fail to take into account repayment which more than clears any debt.
@digitised "you wont eradicate the problem of disproportionate paper to gold" If there was more paper than Gold, that would still be better than only paper with nothing to back it. Go read what Thomas Jefferson had to say on these matters, He knew that silver or gold were the safest forms of currencies for the people, in the sense that the government could not devalue the peoples money. Thousands of years of history prove his point. And of course I don't think any system is perfect.
@thinkertank1 Jefferson lived in different times to us, you need to understand the context of what he was writing about. You cannot compare those times and conditions to how we live now. We have made great advances in economics government, communication and more significantly...globalisation.
Banks cannot deflate/inflate the currency of the land for their own benefit without effecting the value of exchange with other currencies and the purchasing power of goods in overseas markets.
@digitised Truths are truths and they don't change with time, Is paper currency which is backed by nothing, easier to inflate (devalue), than a currency which is backed by gold, silver, or some other commidity? Yes. The answer is the same now as it was then. It is a Truth. Your vague examples of "advancement in economics" etc.. are ludicrous. Why are we facing a collapse worse than the great depression if we have made such advancements in economics?
We can find more gold in the ground, trade more gold with other countries for their resources, use more gold in electronics and jewellery etc This will make gold stocks fluctuate and affect its price.
Also paper money is still tied with value because its linked to the quantity of currency in circulation. Have you not heard of Fishers equation MV=PT?
I mean seriously its mathematical proof that the quantity of money is directly linked with prices.
@thinkertank1 We are not facing a collapse half as bad as what most people make it out to be. Yes there is a huge shortfall because some big banks decided to act like idiots with CDO's. So you have 2 options, let the banks collapse and millions of people lose their savings, jobs and futures...or the system patches the hole temporarily and everyone pulls together and pays a fraction of the bill.
You have basically have 2 dishes on the menu, and both are dog s**t.
@digitised Consider this story (if you never heard it) about gold. An ounce of Gold at the time of the Roman empire would buy a fine toga, sandals and a sash.
At the end of the American Revolutionary War an ounce of Gold would buy a good tailored suit, a pair of shoes and a belt.
At the end of the Second World War, the same.
Nowadays, well after the end of the Cold War, an ounce of Gold will buy the same goods.
@digitised Borrowing is fine as long as the money being lended actually exists. If a bank has 1 million in deposits, they should only be allowed to lend out 1 million. The bank and its depositors make money off the interest of the loaned money and the borrower is able to put that money to work. But this is not how banking works now. Banks lend out more money than what they have. This is why they are always at risk of "a run on the bank" because they don't have the depositors money in the vault.
@thinkertank1 All banks, even the type you suggest would risk a run, simply because they lend. If i have $1m in deposits, and lend $100k, then i can only pay back $900k.
If my depositors know this, and the papers put out a scare, then im out of business.
As i also explained before (but what obviously didnt sink in) is the demand for money. We borrow FAR more than what exists, if you want to limit loans to your suggestion we wouldnt be able to supply even a tiny mortgage market.
@digitised What we lend out typically is repaid without a problem, unless loans are thrown out carelessly by rogue lenders who are planning to repackage and shift on potentially toxic loans for a quick buck.
The fact is this system has worked across most of the world for 3 centuries or more.
It has grown economies, wiped out poverty, and improved living standards for most of the globe. If it was a scam, it simply would not work at all.
@digitised If the bankers plan is to get rich, then why print money and lend it out?
More money leads to deflation of the currency, and interest brings back tiny amounts of profit compared to just printing money up and keeping it at that days value. If they wanted to screw us all over, they are doing it the stupid and hardest way. This is not a scam vs a perfect system, its 2 systems which both have pros and cons. You have just bought into the idea that the gold standard is flawless.
@digitised "More money leads to deflation of the currency" I hope you simply made a typo here. More money and easy credit via artificially low interest rates, leads to price inflation. Note: the housing bubble, easy credit thanks to the Fed, led to inflated real estate prices.
@digitised All businesses in a free market run risks, but there is no free market in the banking industry. The Fed controls all banks in the U.S. via the setting of interest rates. If there was a true free market in banking, banks would compete for depositors and would offer interest rates which reflected economic realities. But as it stands now, people are discouraged to save money due to low interest rates and inflation. Thank you Federal Reserve.
@thinkertank1 When i asked you before to go and read a little more, this is why.
You clearly dont have a clue about interest rates or inflation. You seem to think you do, but really YOU DONT. Im not explaining it here, theres plenty of books and even websites which can explain it.
Im not being rude, or mean, its just you are out of your depth and im actually a little embarrassed for you so take my advice and go and read before you come back with more questions about this.
@digitised I have read and I understand the difference between price inflation and credit inflation. I understand the dangers of central banking and the power of central banks to control interest rates independently of free market forces. I am not out of my depth and the arguments I have made thus far can be backed up with reason and logic. Am I an expert? No. Do I need to be? No. I believe that the Fed is unconstitutional Just as Andrew Jackson said of the central bank which he ended.
@digitised The seller of a house gets money which was created by the buyer’s bank. If the buyer can't pay back the loan. The bank gets the house. The bank only needs to have 10% of the value of the house in actual money to make the loan. If there was no fractional banking and money was backed by gold, banks could only loan out money which was actually in their vault. If the borrower couldn't repay, the bank would be out the money. This system would prevent bad lending practices.
"The bank only needs to have 10% of the value of the house in actual money to make the loan"
The bank essentially buys the house for you (in full) and charges you for having use of its money. The deed of the property is held by the bank as collateral incase you fail to repay your loan, in which case the bank will then sell the house as settlement of the debt. After all you failed to keep up with agreed repayments.
@digitised The bank creates 90% of the value of the house out of nothing. This is fractional reserve banking. If the borrower fails to repay, the bank gets the actual "real world" asset, the house. The bank also collected the interest on the money they created. Yes the bank then sells the house and they get cash from the new buyer's bank. If the bank can sell the house for the amount they created out of nothing, they are happy. Banks never create anything usefull for humanity.
@thinkertank1 This is where you need to get your head around future wealth.
Yes the bank can 'invent' 90% more money. But this means the value of loans is going to match this since it can lend out $9m with only $1m in the deposits.
Over time as the money is paid back, that initial $1m will be repaid to match and surpass the $10m total i show in the books. And that money was usable and benefitted society through job creation, home loans, finance schemes, government projects etc.
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This is one "kindhearted" video. =p
craigclay821 1 week ago
This video went viral on Apia
reggielittle25 1 month ago
Matthew they don't teach it in schools because then the whole scam would be revealed - School is an Indoctrination system they only teach us what we need to know to go out to the world and work for the Industriul system.
SUNNYRHOADES9 1 month ago
I love to watch this video again & again. It must be watched by everyone especially children's as it will provide them a terrific knowledge on the history of money.
debtcc 3 months ago
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Dear all,
Why not take advantage of the system and create Money out of nothing for ourselves? Check how in the video:
MONEY for FREE (1.) The Secret that Bankers don't want you to know. and:
MONEY for FREE (2.) The Secret that Bankers don't want you to know.
Let's get together and start our own bank. It's easy enough.
With kind regards, Adriaan Koreman
Adriaan1950 4 months ago
Survival of the Fittest, we are forever slaves too it. Our only HOPE, our only peace, is too understand the WHY. Why is what seperates us... Them from us, you from me.
ChateauSiran1986 5 months ago
i love how people think this is bad while its just the execution of a for-ever-lasting rule in ANY system; the rule of "Survival of the fittest". This fictional money doesnt harm anybody, exept those that really made bas mistakes/are at the downside of the pyramid. Even if that downside of the pyramid would be 1-million buck-people, they'ld be poor cuzz they're down, and thats that.
ChateauSiran1986 5 months ago
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A biggest public campaign has started to abolish fractional reserve system. Visit POSITIVE MONEY website and support the campaign.
PositiveMoneyUK 7 months ago
Okay so FRB could allow them to loan me, my own money to myself? And they get intrest?
RokkerStu 7 months ago
if the world stop using their paper(money)
they would be worthless.
the one that prints the money rules the world.
this is why we print our money
xuanyiking 9 months ago
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TYPE on your address bar backwards "'Illuminati" and add ".com" on it. See were it take you!
alecfromelatvia 9 months ago
3 People don't like hearing the cruel truth...
baijokull 10 months ago
BEfore we had kings, now we have banks.
Another interesting aspects is rents, the fact that you have to pay more back than what you orginally rented is a tricky idea as it means all the money will eventually end up in the bank.
But wouldt all the fictonal money that is made eventually cause a huge inflation?
Krissdafish 10 months ago
We're facebook slaves, youtube slaves... Money slaves, ego slaves....
salamsucuksosis 10 months ago
.
The new Zeitgeist film is on youtube. It's called Moving Forward
.
Someideasandstuff 10 months ago
want money online??join here..
TheGreendog69 10 months ago
This has been flagged as spam show
check out
Making Money - Consensus
and HELP PROMO AWARNESS, we dont have long ppl
peace
ajhumour 11 months ago
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sabithashasi 11 months ago
So...my questions are? Where does this lead to? Is everybody going to be a slave just to pay their debt? HOW can WE stop this?!
We really need to open a site for people to join HUGE rally's all around the world!
And what is the best possible way to get out of this system without to many people being hurt or killed?
TheRevolutionarySoul 11 months ago
youtube.com/watch?v=nGvhLVI9fck
MylYoulTube 1 year ago
chek ouy
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TJMusicLessons 1 year ago
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blind1105 1 year ago
when the guy wants to buy a car and bank are creating money, allowing him to buy it, bank is also having the responsibility of the DEBT, that means there is a 10.000$ debt hold by her, therefor money has been created in exchange of holding a debt, which is fair... not only bank but you and me or anyone is able to CREATE "MONEY" (money as paper with value) just a contract that I will give you a car can be exchanged for anything of same value,just as money ! ... MONEY IS AND HAS ALWAYS BEEN DEBT!
xorq 1 year ago
Please Check out
Making Money - Consensus
It tells this MONEY MANKING process in the form of SONG.
Help spread the Awarness
Peace
ajhumour 1 year ago
in communist Russia you rob bank,
in capitalist America bank robs you!!!!!!!
ey1990e 1 year ago 17
buy silver from the mint they will send you 99% silver lets beat the bankers
ncbookz 1 year ago
Listen to the song
Making money - Consensus
Spread the message
peace
ajhumour 1 year ago
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Check out the song
Making money - Consensus
It tells this story in 4 minutes spread it to people who dont know
Peace.
ajhumour 1 year ago
I like this video. Thank you for your sharing. Hope to see next your video.
many9662 1 year ago
LOL this video has the Ad- Need money now? Money Mutual, Get $1000 by tomorrow! Apply Now!- Right next to it!
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wendioiso 1 year ago
Use your money,
1 buy enough land to feed you and your family
2 learn how to use it
3 teach others
fannybaba 1 year ago
@fannybaba 1) God gave land to everyone 2)Greedy people stole this gift 3)Enforced the theft with violent military occupation 3)Imposed shackled slavery on the earth to increase the wealth of the greedy, 4) created a system by which a person must have a land lord, or agree to be a slave for 15-30 years to be able to afford the land. In case you have not noticed most land and homes cost over a hundred thousand dollars, good luck buying this and paying taxes, it requires slavery to make payments
HealingVibrations 1 year ago
@HealingVibrations The government actually owns the land. You are paying rent when you pay property taxes. Don't believe me? Who do you pay to? County sheriff. What happens if you don't pay? You get evicted, out on your ass, by the landlord, the government. That is the sad truth. The mortgage tax deduction is another trick to get you to pay more to the elite bankers. You think someone else is paying. Sorry, you are, sheeple.
gringott12 1 year ago
the 1 person who disliked this is a wealthy banker.
NEDMInsane 1 year ago 66
@NEDMInsane HAHAHA Probbo
OHollowTimes 1 year ago
@NEDMInsane agree
keezer1969 1 year ago
@NEDMInsane Exactly.
gringott12 1 year ago
@NEDMInsane EXACTLY!!!
willywillyization 11 months ago
really informative
isabel87adam 1 year ago
Well in the very first quote I want to say Woodrow Wilson was a big socialist worse then Obama, his quotes hold no water with me. he tried to transform America just like Obama is doing. Wilson didnt win and neither will Obama...
SendinK9 1 year ago
I will say however the rest of the video is great, well done!
SendinK9 1 year ago
"Free market" is ROOT of all problems and impossible
1. how do you eliminate inherent corruption of the profit motive?
2. how do you ensures that everyone has the minimum necessities?
ANSWER
1. FREELY Share ALL resources and knowledge worldwide, NO more money/property
2. Use LATEST technology to create an ABUNDANCE of all our needs, NO more scarcity, waste or theft
3. Automate/localize ALL production and distribution, NO more wage slavery or central control
v=YxPPnCW6sMo
v=yPmHaTirnCc
dontblockmedk 1 year ago
@dontblockmedk Look up "The tragedy of the commons". Your utopian ideas have been tried, and they never work.
Pure Capitalism and the free market system is the only system that rewards work over idleness.
leespatch 1 year ago
@l Please watch the vids because it is obvious you have no idea what I am describing. I will not let you bait me with straw man arguments.
AFTER you watch the vids please let me know if you still don't understand something.
v=YxPPnCW6sMo
v=yPmHaTirnCc
dontblockmedk 1 year ago
@leespatch yaaaaaawwn, again, and again. Do your research, by studying from all perspectives, before such idiotic claims: "Capitalism... is the only system that rewards work over idleness". If your theory is right, then I guess that as soon as you stop giving banknotes to the hand of people they turn into a vegetative state automatically.
gasto5 1 year ago
@leespatch yaaaaaawwn, again, and again. Do your research, by studying from all perspectives, before such idiotic claims: "Capitalism... is the only system that rewards work over idleness". If your theory is right, then I guess that as soon as you stop delivering banknotes to the hand of people they turn into a vegetative state automatically.
gasto5 1 year ago
@leespatch The tragedy of the commons is a load of bollocks that capitalists use as an excuse for their greedy ways. Its Writer Garrett Hardin has admitted that he got it wrong and actually retracted his thesis..It has been criticized by many who know better about human nature. The truth is that People who have a stake in something that will look after them, will have the sense to look after it!
fannybaba 1 year ago
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Do not do business with the NY banks. Do business with your local credit union. Get your credit card through the credit union or some small bank. Do not live in debt slavery. Buy or build a cheap house you can pay off quick or not owe on. If you can't save up the money for a purchase, then how can you pay back more in the form of a loan? Think people think. TRue, True
Northstrar1 1 year ago
to sign a contract with a bank is the same as sell your soul to the Devil...!
tehuan1 1 year ago
I wonder why they don't teach this stuff in schools?
matthew376 1 year ago 47
@matthew376 : Public schools are run by the government, and these days, some "private" ones as well.
buzzclick500 1 year ago
@matthew376 Simple. we've been doctrined for years!
Duranguense000 1 year ago
@matthew376 Why? They run everything, it shouldn't come as a surprise :P
svanberg10 1 year ago
@matthew376
theyre thinking about putting it in the curriculum next year.. naat
sony8877 1 year ago
@matthew376 Why do you think? They need to hold slaves to ensure their own power and wealth.
willywillyization 11 months ago
@matthew376 agreed. Instead we learn some delirious poetry and fiction. Disgusting.
bampaz2011 11 months ago
@matthew376 cause the jig would be up!
MzGreot 11 months ago
@matthew376 They do, maybe you should have taken a macroeconomics course and read the chapter on monetary policy a little bit closer...
timetopk 9 months ago
@timetopk Clearly he means state schools. You know... the schools you go to from the age of 4 or 5 up until 16 - 18 depending on which country you're in. What you're suggesting is some sort of college course that you go to and choose yourself. In SCHOOLS they teach none of this for a reason.
0megaSapphire 6 months ago
@0megaSapphire
You're implying that colleges aren't state schools? HERP DERP THEYRE FUNDED BY THE GOV'T
idiot
timetopk 6 months ago
@timetopk No. A college is a college; a school is a school. He's clearly talking about the mandatory part of education, i.e., SCHOOL. College is not mandatory.
Idiot.
0megaSapphire 5 months ago
The problem is explained, the system is designed to eventually fail.
The problem is our ignorance our failure to demand that our so called leaders (owners) fix it. If they won't the must be replaced.
"Let Them Eat Cake!"
40pscrna 1 year ago
@digitised There is no point to continue this conversation if you won't admit your error here. Deflation is a drop in prices of goods and services. This means that the purchasing power of the currency has increased, (the currency buys more). This is a fact. Your description of deflation is actually the definition of inflation. I don't claim to know it all, but I know when I am right.
thinkertank1 1 year ago
HOW ABOUT THIS WE GO TO THE BANK YES WE AND THE BANK CREATE NEW MONEY WE GET £10.000.Say AND THE BANK GETS £10.000 SAY .ALL AT THE SAME TIME ON THE SAME DAY..NO ONE OWES..NO ONE..WE ALL GOT OUR MONEY..AS WE CREATED IT.SO THE old WAYS OF BANKING OUT OF Dated.ALL BANKS AM going uder.UK GOVERNMENTS AT TO BUY ALL THERES AND EU AND USA ....AM LIKE GREASE BANKRUPT NEARLY..ITS GOING TO BE A BIG WW3 THATS Y THERE WARS SOMETIMES TO START NEW WORLD ORDERS AND THE ANWER HERE WITH US
UTubePressOnline 1 year ago
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HOW ABOUT THIS WE GO TO THE BANK YES WE AND THE BANK CREATE NEW MONEY WE GET £10.000.Say AND THE BANK GETS £10.000 SAY .ALL AT THE SAME TIME ON THE SAME DAY..NO ONE OWES..NO ONE..WE ALL GOT OUR MONEY..AS WE CREATED IT.SO THE old WAYS OF BANKING OUT OF Dated.ALL BANKS AM going uder.UK GOVERNMENTS AT TO BUY ALL THERES AND EU AND USA ....AM LIKE GREASE BANKRUPT NEARLY..ITS GOING TO BE A BIG WW3 THATS Y THERE WARS SOMETIMES TO START NEW WORLD ORDERS AND THE ANWER HERE WITH US
UTubePressOnline 1 year ago
What this video failed to reveal. Was that those medieval "bankers" were Jews!
TheMedievalMan 1 year ago
Well all my monies are going to be pulled out of the bank and into stocks...even though stocks are rigged...i get ahead 50% chance of making money more or less....better than them investing with my money
vseae15o 1 year ago
Once the world gives up on the united states in the future, all the rich people with gold and silver are gonna go to china or some other stable country because the US will become unstable with riots? gangs of outlaws and the country will be ruined. GOLD IS ALWAYS GOOD IN ANY COUNTRY
nolanhartman00 1 year ago
5th grade social studies.. i consider people who don't already know this idiots.
VinnyLT9000 1 year ago
Facebook is blocking this for no reason!
craigrgill 1 year ago
@craigrgill OH SHIT THE FEDS!
VinnyLT9000 1 year ago
Peter Pumpkineater
SeanVictorydawn 1 year ago
The opening quote attributed to Mayer Anselm Rothschild is an error. It was actually stated by Mayer Amschel Rothschild. Perhaps this was just a spelling error, but to begin an informative piece like this with mistakes greatly lowers their credibility.
ValoSGonzalez 1 year ago
Do not do business with the NY banks. Do business with your local credit union. Get your credit card through the credit union or some small bank. Do not live in debt slavery. Buy or build a cheap house you can pay off quick or not owe on. If you can't save up the money for a purchase, then how can you pay back more in the form of a loan? Think people think.
gringott12 1 year ago 16
@gringott12 check out this video on youtube called how to abolish the federal reserve.
marco74361 1 year ago
@gringott12 Unfortunately, if you want to get out of debt, we need to crate a new money completely. Money IS debt. There is now way around it.
joneselius 1 year ago
@gringott12 I'm all for small banks, but did you know that credit unions are considered non-profits (even though they clearly make profits, especially the presidents) which means they don't pay taxes. At least small community banks pay taxes which go back into helping the community. But I definitely say screw the NY banks!
rickopotamus78 1 year ago
@rickopotamus78 My credit union is member-owned, and we vote on the entire leadership of the credit union each year. In addition, we have means of making our feelings known as to how we want the credit union to operate. For example, in 1994 I got a small mortgage to purchase a home, 15 years, 20 percent down, the lowest rate in the area. The credit union held the mortgage until I paid it off. There may be bad credit unions, but mine is not one. Screw the NY-Euro banks & the Fed.
gringott12 1 year ago
The biggest quesiton I have is how exactly dose the goverment control the money supply.
badpanda84 1 year ago
@badpanda84 they dont! watch "The Rothschilds Exposed" its a 3 part documentary right here on YT
varina56 1 year ago
@varina56 Ok then if that is the case if the goverment cant control the money supply then what keeps inflation in check.
badpanda84 1 year ago
@badpanda84
Who said inflation is in check? inflation is the reaction when more and more of something of value is in circulation. For example the price of oil should decrease if more of it is obtained. Like when we discover a new oil reserve the price per barrel should go down. the more rare something is the more value we give it. Now ask yourself how rare is it to find a one dollar bill? Not rare at all therefore it is worth less. Inflation isnt in check. What rock are you under?
Jononutoob 1 year ago
@Jononutoob ok then why dont we experinece hyperinflaiton like in some countries like Zimbarbe ( sorry about the spelling) went bank can virutally print unlimited amout of money
badpanda84 1 year ago
@badpanda84
I know nothing about Zimbabwe.
Jononutoob 1 year ago
@Jononutoob Zimbabwe inflation got so out of hand, it was cheaper to wipe your ass with a $100 Zimbabwe note than to buy toiletpaper with it. Shops were changing item prices sometimes twice a day. They started paying people daily, because tomorrow that money is worth nothing. They printed new currency and ran out of space on the notes for the Zero's I recall they had a 100 billion $ note. Now they are using US $ ans SA Rands as currency.
Ironpapa007 1 year ago
@Ironpapa007
Thanks for the info. You should tell badpanda84 what you told me.
Jononutoob 1 year ago
@Ironpapa007 I have a 100 trillion dollar zim bank note.
gringott12 1 year ago
@Jononutoob Dollar bills have value so long as men agree on them as an exchange medium. They are not worthless. Inflating the supply of these notes undermines their integrity as an exchange medium, which is bad.
tothemax01 1 year ago
@tothemax01
People only believe in the dollar because if the dollar fell the world would fall apart. People are backing the dollar and euro because they have no other choice. On the dollar it says "In God We Trust" well god is a big spender huh. Imagine if the treasury made our money.
Jononutoob 1 year ago
@Jononutoob The world would definately not fall apart, but life would definately get worse. In these circumstances, people start resorting to spending any money they get as quickly as possible, to reduce the time that their wealth is devaluing. They start to use other trade media, such as metals and direct bartering. These all reduce liquidity, hamper trade, and thus slow the economy. The only solution is to prevent the dillution of the currency, by law.
tothemax01 1 year ago
@tothemax01
I agree with everything you said except the world not falling apart. After Rome fell the world was chaos. After Greece the same. After France and England the dark ages. It is debatable so I am not saying your wrong. Im just saying from the pattern I see this has happened before and ends with near chaos. The world I see is fragile beyond belief.
Jononutoob 1 year ago
@tothemax01 ok but is there a diffrence between inflating the supply of bank notes and merely letting the banks create as much money as they want
badpanda84 1 year ago
@badpanda84 Yes but this 'money' the banks create, through lending, or 'money that is debt' as these videos talk about, is backed by the assets which the debt purchased. Productive assets are superior a backing to money than say, gold is. If the bank puts too much money into debts that are not backed by productive assets (i.e giving out bad loans), then the bank risks failing due to defaults. There is nothing wrong with a state of perpetual production debt, only too much consumption debt.
tothemax01 1 year ago
I always have a hard time to fully understand the whole money system. For me this was a very clear and understandable way to describe. Thank you for making this great video !
RockTheOcean4me 1 year ago
Thanks America for your ignorant credit-card based way of life. You just fucked us all up!
castorini 1 year ago
Thanks to Paul Grignon for making the DVD set Money as Debt I & II. It is a good primer for people just learning the truth about money creation. There is plenty of background information posted at the blog - The UsuryFree Eye Opener. Do a search for it at any search engine, bookmark it and use the resoruces posted there as learning and teaching tools.
usuryfree 1 year ago
Money, whether backed by gold or dirt, is still a noose around your neck. Inflation wouldn't affect the currency as much but you'd still have those that have a lot and those that have nothing. You'd still have paid slavery.
residualwealth 1 year ago
@residualwealth fair money not attached to debt,eliminating the monopoloy of the bankers,who create money out of nothing and then make us work to pay it back,would mean prosperity for everyone.
Without supporting these pqarasites who steal 95% of OUR wealth there would be4 plenty for everyone.
If you want some heaven without working for it,there is only one way out.
dieyoubastards 1 year ago
@die What do you mean by 'fair money'? From looking at known history, even if we got rid of compounded interest (ribba), fiat money, high taxes and perhaps raised the bank's requirement for reserves, we'd still have many of the same problems driven by the need for profits/money. How do you propose we eliminate the root cause and not just some of the symptoms?
residualwealth 1 year ago
A non-interest money system sounds decent but you'd still have the problem of people slaving for money and things. Part of the other problem this video doesn't touch on is profits. Companies routinely fail to do things, however pragmatic or logical, simply because it's not profitable. People lie and cheat for profits. Needing less profits doesn't change that. Why not just get rid of money, profits, interest, inflation and credit completely?
residualwealth 2 years ago 2
" I believe Banking Institutions are more dangerous to our liberties than standing Armies.
If we ever allow banks to control the supply of money first by inflation then by deflation, they will deprive the people of all prosperity. Until our children wake up homeless on the land their fathers conquered"
---Thomas Jefferson
SmokePropaganda 2 years ago 4
Permit me to issue and control the money of a nation, and I care NOT who makes its laws.
Comprehend that statement.
EndTheFedRes 2 years ago 2
"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
"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."
- Lord Acton
Tressco 2 years ago 4
warning
U.K. external debt
12,670 BN (us$)
174,167 per capita
374.96% GDP
vlockLee1 2 years ago 3
China is the biggest owner of U.S. Treasury
vlockLee1 2 years ago
watch?v=jEL0d5ynFZg
Please help me share my message and plug the holes in the ship we are trying to Bail our-selves out of...
The monetry system is an arse and it is in our power to do something...
Watch my video to see what I feel that something is !!
GlobaliseThis 2 years ago
I saw Zeitgeist last night and it reminded me of this. If people aren't scared by this video, they don't understand it properly.
Phloxicon 2 years ago 4
I hate banks.
foxygabriella 2 years ago 19
@foxygabriella to hate is just not enough. see, the important thing is that we (the people) now know their MOST FEARED weakness. want to beat banksters at their own game? get rid of your credit card. buy gold instead of parking your fiat money in your bank account. do not take any loans. avoid mortgages by renting or leasing a house, so you can buy it in cash later.
pingadomulatinha 1 year ago
@pingadomulatinha Well, I guess? If you don't know their weak spot, you don't know how to break them...
foxygabriella 1 year ago
@foxygabriella It's not banks. It's bond holders. Banks are used BY them. They're only a symptom.
joneselius 1 year ago
In short, 90 % of all money in the world is a hoax and if more than 10 % of if was asked back from the bankers, for loans, materia and real estate, the Capitalist market economy would collapse.
teemuruskeepaa 2 years ago 25
If people took their money out of banks and used cash they system would be forced to change. Eventually we have to get rid of money, banking and credit completely.
residualwealth 2 years ago
@residualwealth
Cash is just another I OWE YOU to the bank... and if the peolple in power decide to make it worthless then it would be no differevt really
camaruzzo 1 year ago
I agree that cash is an IOU but the point of taking your money out of the bank is so that the banking system would collapse. Once the system collapses it would be up to us to implement a better system. I propose a Resource Based Economy. I think we're all mature enough to deal with reality instead of the illusions of credit and debt.
residualwealth 1 year ago
in an ideal world with"power to the people" that would work, but most of us get paid (in credit) by the company we work for...and then the credit goes out to pay direct debits for bills etc...we are truly slaves to the system. It is so sad,yet I believe unreversible. I grew up in my father's restaurant and saw year after year his long life hard work go to waste due to the big companies who "work the system" take control of every bit of the industry,and this will happen everywhere in any industry
camaruzzo 1 year ago
@cam Your words are of defeat but perhaps you don't realize that it really is your unfounded disbelief in your actions that cause your defeat. Washington Mutual et al went under because people pulled their money out. That's the real world not a fairy tale. Millions of people (& likely your father in the past) pay their bills with cash or money orders. You Do Not Need Plastic. Our parents didn't & if enough commit to this boycott the system will fail. Believe You Can Win
residualwealth 1 year ago
but isn't that what the Bankers want, a collapse in the economy, so they can do it all gain, save the day and take even more control ?...
I don't know man... I don't know
camaruzzo 1 year ago
Contractions in the money supply or credit are used so the rich can acquire assets easier but banks can not operate unless they have deposits. Without deposits they lose the ability to extend credit which is a banks primary source of revenue. Without money in 401k, CDs, SEPs, IRAs, IULs, Savings/Checking Accounts, etc banks would fall like dominoes. But the people must not be duped into backing a similar system.
residualwealth 1 year ago
@teemuruskeepaa mh thats scary
Zukhov1945 1 year ago
@Zukhov1945 Why not encouraging?
teemuruskeepaa 1 year ago
@teemuruskeepaa No the money is not a hoax, that 90% actually does exist, its just not sat in your account gathering dust. Its just doing other things, like building houses, hospitals, paying wages, buying holidays etc
That 90% goes back into the system where it creates more opportunity for society, it grows economies which directly increases GDP.
GDP is the measuring bar of a nations quality of life.
You are being mislead by conspiracy theorists im afraid!
digitised 1 year ago
@digitised That 90% once loaned out is recorded as a liability in the account.
It must be paid back and is given a timeframe usually such as a mortgage or HP deal for example. The bank is liable to the customer for that money, it absolutely exists.
Maybe try reading up on this subject from good economics books and not the scare mongering of videos like this.
digitised 1 year ago
@digitised Did you watch the whole movie? If you did you would understand that in order for the economy to grow, the debt must also grow along with it. Under the Federal Reserve with its fiat currency and the fractional reserve banking sytem, we can never get out of debt. Thomas Jefferson warned about this very thing. This is not "scare mongering" . And if the Fed is so great for prosperity why do we have 13 trillion dollars in debt which can NEVER be repaid?
thinkertank1 1 year ago
@thinkertank1 Yes i have seen zeitgeist all the way through.
You are being falsely told in this section that money is created by a process which creates debt. This simply is not true and i would be happy to explain it on msn, or you could look up money creation from other sources such as academic sites, textbooks or simply phoning up your local universities economics department and speaking to a professor.
13 trillion dollars debt, refers to the national debt, dont confuse yourself further.
digitised 1 year ago
@digitised Apologies this isnt the zeitgeist thread, sorry ive had a lot of people talking to me about that. Yes i did watch this video the other day.
I sympathise with people who watch this and think its correct.
Yes it largely is in mechanical terms..but its not what you think. Its far more complicated that what is presented here, and most laymen, even smart maths guys, cant always grasp the key concepts right away.
digitised 1 year ago
Money is not wealth, money is an abstract unit which represents wealth.
Wealth is what exists in real terms.
Now if i create money, i can use that money to produce more 'wealth' ie units of a product or service. More than what existed previously.
By borrowing money i can add to societies output (GDP) thus creating additional wealth. Without borrowing, society has to trade all which exists and struggles to grow at all since all wealth is effectively capped.
digitised 1 year ago
@digitised The Fed creates money out of nothing. They create paper, (bonds), which they sell to people with a promise to pay interest. this isn't wealth creation. The product they created was paper and the people are FORCED to pay interest on it. The bond holders collect the interest on their bonds sure, but all they did was cooperate with the fake "money" creation of the Fed. Investing in stocks provides capital for a company to grow but these bonds are not a way to create wealth.
thinkertank1 1 year ago
@thinkertank1 But the fed does not keep the interest. It keeps a tiny slice for operational costs and the absoltely tiny amount it pays out in dividends to private individuals. The rest of its earnings are put back into the national treasury for use in public investment...conspiracy theorists always forget to tell you that.
They normally tell you that the feds profits are paid to the jewish elites, or the reptilian overlords, along with the gold which doesnt exist in fort knox.
digitised 1 year ago
@thinkertank1 You have got this quite wrong, the fed does not create/issue Bonds.
It buys bonds from the government, creating new base currency, this is an inflationary mechanism for creating liquidity to finance all manner of projects.
Base currency can be decreased by the fed SELLING bonds thus taking money out of circulation. Understand?
This is all part of the open market, and you clearly are out of your dept here im sorry to say, its really important that you sort this out for discussion.
digitised 1 year ago
@digitised Yes I made a mistake in what I said. The Treasury creates the bonds in exchange for Fed Reserve notes. The Government then forces the people to pay interest on those bonds. My main focus however is the practice of fractional reserve banking and fiat currency. Both these mechanisms are not needed for a healthy or functioning economy.
thinkertank1 1 year ago
@thinkertank1 I would stress you are incorrect, but it depends on what type of society you want to live in.
Fractional reserve banking will create money, which in turn will generate additional wealth year on year. This is directly linked to QoL (quality of life) since more goods, lower prices, more services etc means we have better lives.
Also the currency grows with the population, so future generations dont get smaller slices of the same cake.
digitised 1 year ago
@digitised Quality of life is dependent upon the natural resources available to the people and the technological advances which allow for the more efficient production and use of said resources. It is freedom and true free markets which drive prosperity and wealth. The U.S. became the most productive country in the world by the late 1800's, without a central bank and without massive national debt or personal debt.
thinkertank1 1 year ago
@thinkertank1 Hehe resources are important. But why would i want to bother digging up iron?
First someone has to employ me to extract iron ore, this means someone has an industry for forging steel and is supplying a market of steel products. This market is driven by what people want to buy with their money. If people are limited with what they can spend then im afraid I dig up less iron, and that industry produces less. Meaning i earn less and do less.
So put more money in, get more money out.
digitised 1 year ago
@digitised If people want it, and people need it. Give them the ability to buy it and the process will balance out once the loan is repaid. We not only get the steel products, but we get more of them, at lower prices, and we manage to innovate since more people with more skills are involved, who find better ways to make steel goods.
Lower prices better products = better living.
digitised 1 year ago
@thinkertank1 The US used fractional reserve banking long before the late 1800's.
But private banks as i have explained are always at risk of collapse, as well as people not always accepting or even RECOGNISING the banknote of some banks.
A central bank is there to offer support, i dont know why you personally object to that?
I hope its not the conspiracy crowd filling your head with silly ideas, but central banking is a lifeline to peoples, savings, pensions and their employers.
digitised 1 year ago
@digitised I object to the idea of a central bank setting interest rates in order to increase or decrease the money supply. It is the Fed which has kept interests rates artificially low, and contributed to the recession which is now upon us. In fact Bernanke even admitted that it was the FED which caused the depression. We have been operating under a "buble" economy for quite some time because of the Fed. But I have news for you, there are no more bubles to inflate, the game is over.
thinkertank1 1 year ago
@thinkertank1 Okay im going to ask you to seriously spend some time reading up on macroeconomics. You are honestly blundering through most of this making quite outrageous errors that would make even a 1st year econ student feel awkward.
"In fact Bernanke even admitted that it was the FED which caused the depression."
Just to let you in on a little secret...(thats been academic and public knowledge for 50 years!..shhh). Freidman and Hayek were writing about that before man walked on the moon.
digitised 1 year ago
@digitised I'm not blundering, I just figured you must be ignorant of that fact since you are so willing to defend an institution which admits that it caused millions upon millions of people to suffer. These people laugh at us and you want more of it. This new financial reform bill has given even more powers to the Fed and I suppose you have hope now that all will be well. The Fed always acts in the interest of the Fed and not the people.
thinkertank1 1 year ago
@thinkertank1 The fed is independent, because it needs privacy to handle sensitive problems. Dont you understand that if governments or the public were involved that people would abuse information to gamble, invest, cheat and sink companies?
There are very strict rules in the financial system, it is also the backbone of the US economy so if it needs help it needs it confidentiality.
The fed does not keep any profit, so how is it self serving?
digitised 1 year ago
@digitised The Fed is self serving because its policies are directed at benefiting the interests of the entire U.S. banking system and not the people. This video explains the fact quite well, that in any country which has a central bank, that only ONE BANK actually exists. This makes sense since it is the central bank that sets interest rates. I am for ending the central bank model completely, any thing less would be a disaster. If the government ran the Fed we would be in even worse shape.
thinkertank1 1 year ago
@digitised If we had a stable currency which could not be devalued, we wouldn't need to worry as much about investing our money or worry about our life savings being wiped out. You quite litterally could just save your money in a safe, and 30 or 40 years from now it would still have the same purchasing power as now. Under the current system it would be insane to do that. Because of the Fed's inflationary policies, we basically have no choice but to put our savings at risk. This is some lifeline.
thinkertank1 1 year ago
@thinkertank1 But you dont have to worry about your savings.. your money goes into a bank account where its immune from inflation (because inflation is always lower than the interest rate paid into savings accounts). And to top it off, if your bank cant stump up your money, the FED quietly gives it to your bank... to give to you.
This is why the system is fine, your money GROWS over time. Inflation targets are about 2%Pa, whereas savings accounts pay at least that if not 3-5% above even today.
digitised 1 year ago
@digitised Oh and the useful purchasing power would likely increase, not that purchasing power should ever remain fixed (!). Prices fluctuate all the time, usually they decrease for luxury and necessary goods.
E.g a pretty awful 20" TV 20 years ago cost about £500 in the uk, (when my mum earnt £2.50/hr), now a good 32" LCD costs £500 where min wage is £5.85/hr.
If you calculated the real wage and real price, you'd see an increase in purchasing power due to technological innovation.
digitised 1 year ago
@digitised There are several variables to consider in your example, where the TV was made, how much was the worker paid to make it, the classic law of supply and demand, etc....The only useful example is "cost of living". Can I sustain the same standard of living now on the same wages I earned 20 years ago? No. I won't argue that some items become cheaper over time, but overall the cost of living increases.
thinkertank1 1 year ago
@digitised To say that the cost of living increases over time only confuses people. Those things which sustain life don’t become “more expensive” or “more valuable”, but we are required to purchase those things with more units of currency, because our currency has been devalued. Prices don’t go up; fiat currencies just become more worthless due to the policies of central banking and the countries which collaborate with them.
thinkertank1 1 year ago
@thinkertank1 Gold backed systems will still issue banknotes, so you wont eradicate the problem of disproportionate paper to gold. You pretty much tie yourself down with investment too, since you make borrowing expensive. There will not be enough money to finance mortgages for example. So get used to working until you are 50 to buy your 1st house.
The population tends to borrow a lot more money than what exists, and government will likely crowd the market out every other day of the year.
digitised 1 year ago
@digitised At least a bank note backed by gold can be exchanged for an actual product which is traded on the free market. Those worthless Federal Reserve notes are backed by nothing, which creates a massive moral hazard to our country through constant expansion of the debt.
thinkertank1 1 year ago
@thinkertank1 The banknotes are backed by faith in both cases.
You still never have enough gold, and there really is nothing to stop bankers printing up more notes than money.
I dont understand this "constant expansion of the debt" i know these movies/websites/theorists always make claims that all money = debt, but this is a half truth because they fail to take into account repayment which more than clears any debt.
digitised 1 year ago
@digitised "you wont eradicate the problem of disproportionate paper to gold" If there was more paper than Gold, that would still be better than only paper with nothing to back it. Go read what Thomas Jefferson had to say on these matters, He knew that silver or gold were the safest forms of currencies for the people, in the sense that the government could not devalue the peoples money. Thousands of years of history prove his point. And of course I don't think any system is perfect.
thinkertank1 1 year ago
@thinkertank1 Jefferson lived in different times to us, you need to understand the context of what he was writing about. You cannot compare those times and conditions to how we live now. We have made great advances in economics government, communication and more significantly...globalisation.
Banks cannot deflate/inflate the currency of the land for their own benefit without effecting the value of exchange with other currencies and the purchasing power of goods in overseas markets.
digitised 1 year ago
@digitised Truths are truths and they don't change with time, Is paper currency which is backed by nothing, easier to inflate (devalue), than a currency which is backed by gold, silver, or some other commidity? Yes. The answer is the same now as it was then. It is a Truth. Your vague examples of "advancement in economics" etc.. are ludicrous. Why are we facing a collapse worse than the great depression if we have made such advancements in economics?
thinkertank1 1 year ago
@thinkertank1 Both can be devalued or inflated.
We can find more gold in the ground, trade more gold with other countries for their resources, use more gold in electronics and jewellery etc This will make gold stocks fluctuate and affect its price.
Also paper money is still tied with value because its linked to the quantity of currency in circulation. Have you not heard of Fishers equation MV=PT?
I mean seriously its mathematical proof that the quantity of money is directly linked with prices.
digitised 1 year ago
@thinkertank1 We are not facing a collapse half as bad as what most people make it out to be. Yes there is a huge shortfall because some big banks decided to act like idiots with CDO's. So you have 2 options, let the banks collapse and millions of people lose their savings, jobs and futures...or the system patches the hole temporarily and everyone pulls together and pays a fraction of the bill.
You have basically have 2 dishes on the menu, and both are dog s**t.
digitised 1 year ago
@digitised Consider this story (if you never heard it) about gold. An ounce of Gold at the time of the Roman empire would buy a fine toga, sandals and a sash.
At the end of the American Revolutionary War an ounce of Gold would buy a good tailored suit, a pair of shoes and a belt.
At the end of the Second World War, the same.
Nowadays, well after the end of the Cold War, an ounce of Gold will buy the same goods.
thinkertank1 1 year ago
@digitised Borrowing is fine as long as the money being lended actually exists. If a bank has 1 million in deposits, they should only be allowed to lend out 1 million. The bank and its depositors make money off the interest of the loaned money and the borrower is able to put that money to work. But this is not how banking works now. Banks lend out more money than what they have. This is why they are always at risk of "a run on the bank" because they don't have the depositors money in the vault.
thinkertank1 1 year ago
@thinkertank1 All banks, even the type you suggest would risk a run, simply because they lend. If i have $1m in deposits, and lend $100k, then i can only pay back $900k.
If my depositors know this, and the papers put out a scare, then im out of business.
As i also explained before (but what obviously didnt sink in) is the demand for money. We borrow FAR more than what exists, if you want to limit loans to your suggestion we wouldnt be able to supply even a tiny mortgage market.
digitised 1 year ago
@digitised What we lend out typically is repaid without a problem, unless loans are thrown out carelessly by rogue lenders who are planning to repackage and shift on potentially toxic loans for a quick buck.
The fact is this system has worked across most of the world for 3 centuries or more.
It has grown economies, wiped out poverty, and improved living standards for most of the globe. If it was a scam, it simply would not work at all.
digitised 1 year ago
@digitised If the bankers plan is to get rich, then why print money and lend it out?
More money leads to deflation of the currency, and interest brings back tiny amounts of profit compared to just printing money up and keeping it at that days value. If they wanted to screw us all over, they are doing it the stupid and hardest way. This is not a scam vs a perfect system, its 2 systems which both have pros and cons. You have just bought into the idea that the gold standard is flawless.
digitised 1 year ago
@digitised "More money leads to deflation of the currency" I hope you simply made a typo here. More money and easy credit via artificially low interest rates, leads to price inflation. Note: the housing bubble, easy credit thanks to the Fed, led to inflated real estate prices.
thinkertank1 1 year ago
@digitised All businesses in a free market run risks, but there is no free market in the banking industry. The Fed controls all banks in the U.S. via the setting of interest rates. If there was a true free market in banking, banks would compete for depositors and would offer interest rates which reflected economic realities. But as it stands now, people are discouraged to save money due to low interest rates and inflation. Thank you Federal Reserve.
thinkertank1 1 year ago
@thinkertank1 When i asked you before to go and read a little more, this is why.
You clearly dont have a clue about interest rates or inflation. You seem to think you do, but really YOU DONT. Im not explaining it here, theres plenty of books and even websites which can explain it.
Im not being rude, or mean, its just you are out of your depth and im actually a little embarrassed for you so take my advice and go and read before you come back with more questions about this.
digitised 1 year ago
@digitised I have read and I understand the difference between price inflation and credit inflation. I understand the dangers of central banking and the power of central banks to control interest rates independently of free market forces. I am not out of my depth and the arguments I have made thus far can be backed up with reason and logic. Am I an expert? No. Do I need to be? No. I believe that the Fed is unconstitutional Just as Andrew Jackson said of the central bank which he ended.
thinkertank1 1 year ago
@digitised The seller of a house gets money which was created by the buyer’s bank. If the buyer can't pay back the loan. The bank gets the house. The bank only needs to have 10% of the value of the house in actual money to make the loan. If there was no fractional banking and money was backed by gold, banks could only loan out money which was actually in their vault. If the borrower couldn't repay, the bank would be out the money. This system would prevent bad lending practices.
thinkertank1 1 year ago
@thinkertank1 Could you be a little clearer here?
"The bank only needs to have 10% of the value of the house in actual money to make the loan"
The bank essentially buys the house for you (in full) and charges you for having use of its money. The deed of the property is held by the bank as collateral incase you fail to repay your loan, in which case the bank will then sell the house as settlement of the debt. After all you failed to keep up with agreed repayments.
digitised 1 year ago
@digitised The bank creates 90% of the value of the house out of nothing. This is fractional reserve banking. If the borrower fails to repay, the bank gets the actual "real world" asset, the house. The bank also collected the interest on the money they created. Yes the bank then sells the house and they get cash from the new buyer's bank. If the bank can sell the house for the amount they created out of nothing, they are happy. Banks never create anything usefull for humanity.
thinkertank1 1 year ago
@thinkertank1 This is where you need to get your head around future wealth.
Yes the bank can 'invent' 90% more money. But this means the value of loans is going to match this since it can lend out $9m with only $1m in the deposits.
Over time as the money is paid back, that initial $1m will be repaid to match and surpass the $10m total i show in the books. And that money was usable and benefitted society through job creation, home loans, finance schemes, government projects etc.
digitised 1 year ago