What is Credit? 2 of 2

Now, more than ever, there is an imperative need for people to understand the nature of credit in a capitalist society. In a time when we are seeing the high seas of finance increasingly rocked by rolling crisis and systemic instability, from Enron to the sub-prime mortgage debacle to the dot.com bubble to the asian financial crisis- in such a time it is imperative that average citizens develop a useful critique of the way credit functions in the global economy.

full text at:
http://kapitalism101.wordpress.com/what-is-credit/

Category:

Entertainment

Tags:

• credit
• capitalism
• circuit
• of
• capital
• fictitious
• value
• speculation
• speculative
• bubble
• karl
• marx
• david
• harvey
• federal
• rese

[jumpnjza2]

I've heard Russo and Alex Jones say that the FED is a private bank. What's your take on this? Is it true?

I'm not an American, by the way.

[brendanmcooney]

the FEd is privately owned but the head of the FED is appointed by the government and it works with the government on creating monetary policy. It is basically a collective agent of the banking faction of the capitalist class. In this way it is sort of like a mini-state unto-itself.

[1studentoftruth]

Productive capitalist are the businesses and the Money capitialist are the banks, right?

[brendanmcooney]

yes.

[hume12345]

I actually learn something from watching these videos. I have a vague idea beforehand but this and other videos by the author clear up any ambiguity

[vunet]

very good videos... keep them coming

[LOLitsJono]

Would the current cost of Gasoline be considered a 'Speculative Bubble' created by Commodities traders?

[tuberesponder]

MONEY is not CAPITAL.

CAPITAL does not circulate, MONEY and MONEY SUBSTITUTES Circulate.

LEGAL TENDER, BANKNOTES, and CREDIT are Money Substitutes.

The banks don't circulate capital, they circulat

The Federal Reserve is NOT part of the US Government. It is a "not for profit" CORPORATION. Five People, chosen by the CORPORATION, nominated by the president and confirmed by the senate, are not even CLOSE to the real power of the Federal Reserve.

[bergweg]

And ye, a bank since it is a fiction can not create any value therefore it can not loan any, it (actually the people behind the legal mask) can however steal value. Banks/Corporations/The State do that on a daily basis.

[bergweg]

e.g. When someone takes out a loan/mortgage to buy a house and then works (produces value/gives his/her time) but only manages to pay-off 50% of the loan and the bank comes in and confiscates the house, it is actually stealing all that labor(time/life energy) from the living breathing man since it (the bank) did not actually loan anything of value, and technically it was not even a loan. So house foreclosures by banks (the State) = theft.

[jumpnjza2]

Is there a movement to change this?

[jumpnjza2]

You don't need a degree to understand the world. I know people who have completed majors in economics without being able to form a detailed analysis about the global economy.

[jumpnjza2]

So true. You can study aspects of Marxist political economy in most Universities, but never the whole thing. Most business faculties have gone shifted so far right-wing that even Keynesian thinking is considered 'leftist'.