Money as Debt - Fractional Reserve Banking part 2 of 5

Money as Debt - Fractional Reserve Banking

Do you know where money comes from? How it's created? How it's Valued?

Did you know that Money is Created out of Debt and how that works?
A great way to teach your children the value of money is this very interesting and educational animated... video. It is... an engaging animated production that everyone should see.

Video set consists of 5 videos totalling 42 minutes.
Click here for Auto Playlist to watch the entire series
http://www.youtube.com/watch?v=csHJqfLBk2M&feature=PlayList&p=D94A93E...

What is "Injecting Liquidity"?
Do Deficits matter?
Where is the US Dollar going with this war spending and Debt?

See more: Paul Grignon's 47-minute animated presentation of "Money as Debt"

"Deficits mean future tax increases, pure and simple.

Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers."
- Congressman Ron Paul

"The abandonment of the gold standard made it possible for the welfare statisticians to use the banking system as a means to an unlimited expansion of credit... In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value... Deficit spending is simply a scheme for the 'hidden' confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statisticians' antagonism toward the gold standard."
---Alan Greenspan

Category:

Education

Tags:

• Money as Debt
• Fractional Reserve
• Banking
• monetary system
• federal reserve
• money
• borrowing
• lending
• mortgages
• lender
• borrower
• Inflation
• debt
• yirmaster
• Greenspan
• Stock Market
• US Dollar
• Bernanke
• House of Cards
• debt as money

[hahaha44602]

I think we should go back to the time when we consume what we produce and exchange what we produce for other produce, for example exchanging fish for rice and so forth. That has more logic to it than selling our labor for income and working as slaves for the rest of our lives. Wants become needs and people end up wasting their money on what they don't need, while the bankers get richer as the rest of the planet grows poorer. Money is worth nothing now. Inflation is wat we end up with

[pipem4n]

Fractional reserve is not wrong per se. It's not with gold money.

Peter Schiff: the Fed, fractional reserve banking, FDIC, health insurance, and education 8/7/09

and blow your mind for free ? :D

Peter Schiff debates David Epstein of Columbia University -- Nov 11 2009

The truth delivered to You from dark place in soviet EU.

[SkipLaC]

@gorealestate There is no such thing as think for your self. All conscious human thought involving "words" is a trained phenomenon. Humans can't think for themselves. Humans can "only" put together things they've heard previously in combinations they haven't heard yet. Thinking in words requires that a human has been influenced by others previously. I agree it is not a good idea to believe everything heard but it is impossible to ignore repeated information from multiple sources as well.

[gorealestate]

@schoolboy4321 Yes, I agree. Nice chat. It's nice to have a debate. (the freedom of speech!) No disrespect on this part either. TTYL

[gorealestate]

@schoolboy4321 Oh brooother! Why are you trying to talk AT me as if I don't know and need to be educated? The sad thing is that you are talking like a sausage!

[schoolboy4321]

@gorealestate Modern money -- typical, paper-based fiat currency -- typically does not have any inherent value; its only value is in the head of whomever is doing the buying and selling. Outside of that frame of reference, it's usually pretty much worthless. Lots and lots of items have been used as currency throughout history, although before the past 100 years or so, commodity currency was the standard, meaning it was currency that had worth in and of itself.-Discovery summary, better than mine

[schoolboy4321]

@gorealestate Sir no disrespect again, but bottom line is when legal tender paper dollars are backed by something in actual value it is very difficult to devaluate that currency. When the money supply gets flooded by new currency that are not backed by any value, the value of each individual dollar decreases, simple fractions. I have to go back to work now but great chat!

[schoolboy4321]

@gorealestate Ok well lets start with the basics. The reason why gold, and other metals are valuable, is because they have several industrial uses. Not to mention the fact that we cannot create gold out of air. Those who mine gold are therefore mining something of value. I work so I can paid money to but things that I need. You can obtain gold by buying it or finding a mine. Third, as I had previously stated , although not redeemable for any value it is still a measure to purchase goods.

[gorealestate]

@schoolboy4321 Yep, yep, yep. That is absolutely true! Beleive that please! More reason to send me your dollars! They are worthless anyway and hopefully your confidence in the dollar is low enough to expect me to do any service to you for all your worthless dollars. Go ahead....send them to me! Please?

[gorealestate]

@schoolboy4321 : You didn't answer my question.....HOW do YOU obtain gold? Do you go out and mine it yourself?? My point is...you have listened to to many of these yahoos who think paper money has no value.

Please answer the question: 1) Why do you work?___________ 2)How do YOU obtain gold/silver?____________ 3) So if your "current legal tender" is not redeemable for any true value, why will you not send it to me? _________