Basketballs & Banking

This was suppose to be a response video, but wepollock blocked me, and deleted my comments. WTF? Apparently, he is a religious nut job, and I have undermined his religious ideology.

Anyways... here is the video I was trying to respond to:
http://www.youtube.com/watch?v=us3KvSnvQcg

Category:

Education

Tags:

• banking
• fractional
• reserve
• credit
• debt
• loan
• fed
• federal

[chaingangcharlie]

Shawn : I suggest you try to remain calm. Apparently it is you who doesn't understand fractional reserve banking:

"Fractional-reserve banking creates money whenever a new loan is created." (wikipedia article on 'money creation' . )

"Whenever a bank gives out a loan in a fractional-reserve banking system, a new sum of money is created." ( wikipedia art. on 'fractional reserve banking' )

[jekyllisland7]

your video completely ignores the credit/debt based system we live in. The amount of credit (debt) in the system dwarfs the actual number of dollars floating around. Currently, debt is being defaulted on at a pace never seen--a deflationary spiral.

[theVAGINAntichrist]

MAKE MORE VIDEOS

[sheffieldvids]

THIS IS SO LAME!!!

[923TARA]

LOL, GREAT ANALOGY !

i am still trying to figure out why the banks got bailed out for the bad mortgages yet still hold liens on people's homes. if they get bailed out, should not the people oweing them those same funds be forgiviven of these paid of debts thru use of our tax dollars to the banks ?

[chaingangcharlie]

"John Kenneth Galbraith once famously said, The process by which money is created is so simple that the mind is repelled. Were about to discuss that very thing. Money creation is a bizarre thing to ponder. It is actually a very simple process, but its really difficult to accept.

Money is loaned into existence. Conversely, when loans are paid back, money disappears. "

chrismartenson dott comm

[chaingangcharlie]

"The money supply of a country is usually held to consist of currency (banknotes and coins) and demand deposits or 'bank money' (the balance held in checking accounts and savings accounts). These demand deposits usually account for a much larger part of the money supply than currency.[8][9] Bank money is intangible and exists only in the form of various bank records. Despite being intangible, bank money still performs the basic functions of money.." wikip : 'money'

[chaingangcharlie]

There are two different ways to create money: * manufacturing a new monetary unit, such as paper currency or metal coins (money creation) * loaning out a physical monetary unit multiple times through fractional-reserve lending (credit creation)

reference dot comm

[D4Shawn]

lol

Guess what: A five dollar bill can be used to buy a zillion times that amount. There are even less restrictions on spending money then there are on lending it.

[D4Shawn]

Why is it so hard to understand what bank reserves are and what they are for?

Are you really that deluded by conspiracy theories that you can't understand that banks pay out withdrawals from their reserves?

It's not that frikkin' complicated.