MAD3/1/1 Money as Debt III - Evolution Beyond Money Part 1: Examining the Problem / segment 1

What are the problems with our current money system? Part 1 of Money as Debt III - Evolution Beyond Money, takes a critical look at the fundamentals of today's money system, conceptually and in terms of its design arithmetic.

chapters The Challenge; Interest, Stock & Flow; Money Lent Twice.

Part 1 is a review, and an expansion upon, information provided in Money as Debt, and Money as Debt II - Promises Unleashed. It is advantageous to have seen the first two movies of the Trilogy because it is quite unfamiliar material for most people.

Category:

Education

Tags:

• alternative
• currency
• community currency
• mutual credit
• credit
• debt
• money
• monetary
• reform
• gold
• silver
• Tea Party
• Occupy Wall Street
• Federal Reserve
• dollar
• bailout
• economy
• financial
• collapse
• crash
• crisis
• recession
• freedom
• Money
• Economic
• Bank
• Educational
• Government
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• Federal Reserve System
• United States Dollar

[AcousticDoc]

I've enjoyed your series changing the way I look at money. However, from what I understand in all 3 videos, debt can never be paid off...but how did President Andrew Jackson become the last to do it?

[PaulLWGrignon]

@AcousticDoc Not all money was debt in Jackson's day. Much of it was gold and silver coin. Jackson was able to pay off the debt due to high government revenues in both credit instruments and coins. The elimination of federal government debt caused a severe deflation at that level while rampant unbacked credit issue by State banks caused inflation. So it was a chaotic situation. Today, ALL money is debt. Any slowdown in total debt creation will cause mathematically inevitable defaults.

[JiveDadson]

First the video debunks the notion that interest makes it impossible to pay off all debt, then it claims that all debt cannot be repaid when borrowed money is lent out again. But the exact same argument that refutes the first claim refutes the one made here.

[PaulLWGrignon]

@JiveDadson

Interest can be SPENT back into circulation.

Principal is only LENT back into circulation

There is a huge difference.

See my Analysis of Banking at my website

[Castle3179]

@PaulLWGrignon Just wondering, is there a fundamental difference between lending at interest and charging a very high price for goods while expecting payment over time? Is this an example of how interest isn`t exactly the problem by itself.

[PaulLWGrignon]

@Castle3179 The difference is that when you pay a price the money is NOT extinguished. The "money supply" does not change. When you make a loan payment to a bank, the principal portion IS extinguished. The money supply is reduced. Interest is not the mathematical problem of P<P+I that so many people claim. See my Analysis of Banking on my References Page

[darkyspread]

I've opened my eyes in 2006 thanks to you through Money as debt 1. You've broken many bonds of brainwashing and enslavement. I hope you're aware of that Sir.

[Castle3179]

@PaulLWGrignon Thanx!

[djhaig]

The problem with Money is no matter how much the we fix it there will be someone to manipulate it in time. The best way is to go back to the Atlantis times. Gift economy! No more monetary system where there will be too much gap in between people who cheat on it and manipulate others"New and sleeping Souls"

[gamerunknown]

Oh, Marx also gives insight to the historical precedence for the promise to pay: the existence of wage labour. The labourer signs a contract giving their labour as a forward payment in faith that their labour will be paid for at the end of the duration (rather than before the labour has been utilised by the capitalist). The situation is one sided as the wage labourer cannot charge their manager interest on late payment and their liability for late payment is limited (they won't lose their home).

[gamerunknown]

@ScorpiusIncorruptus

Yes, but global trade makes establishing a national/international standard more desirable. Marx actually wrote a fairly good commentary on why two standards of currency usually don't stand together, as one will tend to be preferred if its value more accurately tracks the labour that went into producing it. As long as participants enter a market as equals then the exchange of goods shouldn't deviate too far from the average labour to produce them.

[boumar19721972]

@PaulLWGrignon RBE FTW!

[ScorpiusIncorruptus]

Thanks, for this...something brought me to this wonderful 3rd installment of your series. Question: could it be assumed that a contributing factor is not how much we've grown, but how fast it's been? When I heard that there are places in the US utilizing their own currencies, like the Northeast using the Berkshare (sp?), it dawned on me that most problems would've never developed if money creation was ALWAYS maintained on a local level, as anything can be used as a currency if agreed on by all.

[Sumac5]

@trufiend138: I just rented the video from Grignon's website. I have already watched it several times. Just fantastic. Pay the four bucks or so and you'll never regret a penny. I'll probably eventually buy several DVD's for friends. @PaulLWGrignon: Thank you, thank you, thank you. What a service to mankind!

[maximus2468]

Hi Paul,

Do you know if your videos are getting any attention withing the occupy movement?

The so called media keeps telling us the problem with occupy movement is that these protesters don't have some unifying agenda. I think your videos would bring focus to the occupy movement on the fundamental problem that is facing us today.

[trufiend138]

anyone have a link to the entire vid?

[abababac1]

THE whole idea of individual debt creation is to swallow the hard earned labor of individuals(public) through direct,corporate and govt giveaways as interest.Public's loss, deprivation & suppression is their perpetual gain unless their lust is satisfied.

[abababac1]

@PaulLWGrignon Great effort,GOD BLESS U and REWARD U WITH COUNTLESS BLESSINGS take good care of yourself.

[PaulLWGrignon]

Thank you

[PaulLWGrignon]

Have you visited my References Page?  More analysis in written form is available.

[PaulLWGrignon]

Glad to hear it. See my Reviews Page for others' comments

[PaulLWGrignon]

The whole project has taken 6 years at about 4000 hours per year (not that I punch a clock or even want to know my hours).

[PaulLWGrignon]

Access the list from my Donations Page.

[PaulLWGrignon]

The unreliability of individuals is why the movie suggests that government and essential industries be the source of credits, not individuals. Individuals have the FREEDOM to issue credits but all credits are refused by default, so how far would any individual's credits circulate? Probably only among those who know the individual, that is to say... within the individual's "circle of trust".

Product or tax credit money would be used by third parties just as money is today. Earn it & spend it.

[tretcherousape]

what happens when someone gets sick or cannot produce for a period of time for whatever reason

[DvTAntiDarWIN]

can some one give me links to this documentary on youtube in an alphabetical order.