rather the old, than the capitalist pig Mystic... anyway

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• inmendham
• donotgod

[johntheunique]

A Federal Bank wouldn't be such a bad idea if you could trust that bank 100%. The problem is the same with putting all your money in one stock. If that stock does really well, you do really well, but if it does really poorly then you do really poorly. Multiple banks creates redundancy which in itself is inefficient, but it's necessary for risk management.

[johntheunique]

America is in a quasi-state between capitalism and communism, usually referred to as socialism. If the government controls an industry and the government is controlled by the people (a democracy), that industry is being controlled by the people. That is communism. The question is, Who is really controlling the government? If the wealthy are controlling the government, then it's an oligarchy.

[RibbitAfterMe]

I understand what you are saying. Are you sure that you can call it financial communism though. Even with a "big central bank" and no middle men, it would still be a system where individuals and corporations would be able to borrow money to finance there capitalistic entreprises. I am not preaching for it as I know too little, but as the actual financial system has shown its vulnerability I am wondering what are the options?

[johntheunique]

The problem with capitalism is that it assumes perpetual growth. It's always borrowing against a future that it expects to grow in order to sustain itself. You can't have infinite growth in a finite world. At some point this finite planet just won't have the resources to support all these claims on the future.

[johntheunique]

Yes, you can take out the middle man, but then you have one big central bank. That's financial communism. Since our government still wants to operate under the guise of capitalism, it allows these puppet private bank to run under the Fed. Communism is thriving in education as well. You have all these colleges that are heavily subsidized by the Federal government. They will teach government curriculum because they won't be able to compete against the other schools unless they do.

[johntheunique]

In order for the Fed to create capital where there is no capital, it is borrowing from the future. To do this it needs other countries to buy into our future through Treasury Bonds. China is the primary credit provider to our country since it owns so much of our Treasury debt. Everything works fine unless we default on our loan payment to them, either outright or through substantial inflation. We've seen this same scenario play out before in post World War I Germany.

[DynaCatlovesme]

I think talking about the Fed printing money confuses the issue. The vast majority of money lent by the Fed is not represented by currency notes.

[pronchie1]

I understand your explanation but what is missing for me to get the full picture is the reason of why we need compounded interest. I get the inflation part and so if your salary increases to match, that should somehow balance out. Yet if you look at the rate the banks are lending and calculate over 20 or 30 years like for a house it seems to me that a huge chunk of profit is being made on top of the inflation and admin charge. Just for using currency to do a transaction or is it a risk fee?

[petesangyal2]

f*ck i want a bank...you dont have to have sh*t...so the feds give you free money,with what i buy a house,and sell it for 50% interest...and after all that they still ask for bail out money....man...the systems f*cked up

[EthanJM]

I appreciate the effort in this Gary, although honestly I still don't totally understand it, I will watch the video again in a while.