Money as Debt - Fractional Reserve Banking part 4 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

[explik]

@EziekielNightwind it's not the Canadian Government who owns the Canadian Bank Note Company or GEISEC ;P

[EziekielNightwind]

Um... Canada's central bank, the Bank of Canada is owned by the Government of Canada. It was created in a private entity in 1934, but in 1938 became a Crown Corporation run by the government of Canada. Technically, the Royal Family own the bank, but it's Parliament who runs it.

[scrappmutt2]

One problem. I want to buy a widget machine, need a loan to do it. Gov says that's a stupid idea, tells me no on the loan. In private banking, I could keep shopping for a banker who believed in my idea or had a high enough interest rate to offset the risk of lending for my stupid idea. I don't think a gov monopoly on banking is in the best interest of it's people cause there is nowhere else to go if they say no, aside from friends, family and black market loan sharks.

[MrFerrariF360]

@rightsideofhistory If you listen carefully, your literal interpretation of what is being said in this video is not correct.

The video says to *counter* deflation, the government would in effect, increase the money supply.

You're saying the same thing as the video, it is simply using more real world terminology to get the point accross.

[rightsideofhistory]

The writers of this video series didn't really understand what inflation & deflation are. At least not how they are portraying it in the video. (1:40) Deflation is NOT the "phenominon" of lower wages and falling prices. It is the *circulating money supply being shrunk* (dollars in existence - being shredded or destroyed). Movement on prices is *incidental* to deflation. Inflation is expanding the money supply (printing), deflation is shrinking the money supply (shredding).

[ecnerwal999]

This is ridiculous. GOLD AND SILVER ARE THE BEST TIME OF MONEY. Resource costs are tiny. Gold has worked phenomenally as a money. If you allow government to print and spend money there would be tyranny. They would waste money on war and enslave the people. There's a reason the Constitution says only gold and silver should be money.