Fiat Money - rich poor divide

Despite every effort by governments, the gap between rich and poor continues to grow. It is now the biggest it has even been in history. All sorts of reasons for this have been proffered, but few, however, seem to realise that is a simple, inevitable consequence of our system of money and credit. This video, a shorter version of which appears in the film The Four Horsemen, explains ...
Written and narrated by Dominic Frisby
Animated by Pola Gruszka
Produced by Renegade Economist
www.fourhorsemenfilm.com
www.dominicfrisby.net

Category:

Nonprofits & Activism

Tags:

• fiat money animation
• Dominic Frisby
• pola gruszka
• gold
• independent
• whyoccupy
• occupy wall street

[bamoram]

@LilaDeGr8 You are completely missing the point. We should just git rid of the Federal Reserve, money backed by nothing, and fiat money. We should allow competing currency.

[nalejbank]

@LilaDeGr8 One silly comment deserves another to make a point. We are in our present mess precisely because of collectivist central planning and the manipulation of markets, money and governments. Special tax deductions, incentives, subsidies, expanding transfer payments and wealth distribution, over spending and debt and the tax of inflation to pay for it, undeclared wars than benefit the Mil/Ind complex, and on and on it goes. A subterfuge of graft and theft the world has never seen before!

[nowthatsinteresting1]

@FungalSheep True - but the debate is relevant. If money is not backed by something (whether it's gold or another commodity), then we have the current mess, where most (over 90%) of the money in circulation isn't even printed cash. It literally has no actual value at all - it is entirely virtual, being created, stored and transferred entirely on computers. Who creates almost all of this money? Banks, every time they lend money. There is little or no regulation on how much they can lend, too.

[nowthatsinteresting1]

Superb. The problem with money/banks goes right back to the 1600s in the UK. Then, people deposited gold at goldsmiths for safe keeping, getting a note that showed how much they had deposited. This note was then like a very valuable bank note. The problem came when goldsmiths realised that they could just keep on writing notes, no matter whether they had that total amount of gold in the vault or not. This is the basic fraud of banking, one that underlies every single boom and bust ever since.

[impermanente]

euro is not a FIAT currency

[lflan11]

@nalejbank 

[lflan11]

@FungalSheep

[FungalSheep]

I still can't help but feel that for all the merits or non-merits of different specific forms of money, the debate over fiat or the gold standard is nothing but a panacea distracting from more fundamental questions over the nature of property, labor, and capital.

[aaronmoravek]

It's enough to make you want to through up.

[jsgdk]

join a Credit Union ;)



[LilaDeGr8]

@nalejbank Thank you. At least this was a more thought out response.