Fiat Money

Here is the sister video to this - http://www.youtube.com/watch?v=RvL_Dm...

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 (which I co-wrote), explains ...
Written and narrated by Dominic Frisby
Animated by Pola Gruszka

www.dominicfrisby.com

Produced by Renegade Economist
www.fourhorsemenfilm.com

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[NearAbbeyRoad]

In "transactions " you mean debt. When banks do not have enough reserves to fund loans, they borrow off central banks, or other banks at low rates. When they do not have enough funds to give loans money is printed. Everything is predicated on DEBT. They assume that people wanting loans the economy is growing to pay back the loans.

We had a crash. So banks wanted their money back. Money that wasn't there before the loans were given. The debts should have been wiped out.

[Kristian Berg]

Sometimes a bank has to adopt this policy yes, but again, in qualitative easing the central banks are buying financial assets from commercial banks or other financial institutions. They're not just "Printing money". Fiat money means we trust it is worth something, even though it has no inherent value.

[Rob Mews]

I have my own FIAT money except it does not have the same pictures on it as the dollar or Euro or Rand or Yen circulating in the economies of the world. I got mine in a board game named "Monopoly". And when I progress past "Go" I get another 200 dollars. I just have to  throw a dice to get more.

[aviomaster]

DOLLAR is still king USA military IMF and World Bank stand behind DOLLAR monopoly. Which enables USA to spent unimaginable amnounts of Dollars. DOLLAR holders around the world PAY keeping Dollar monopoly alive.

[eddrush209mph]

What are you talking about of course it does! Stop fooling the guy. Lol :P *Jks*

[shizyninjarocks]

Great video, thanks.

[Robert J. Rath]

We have to do somthing about this.. as long as we use fiat currency there will ALWAYS be big problems in the world like the big difference between poor and rich..

[NearAbbeyRoad]

I was stating fact to ram home the level of pubic money poured into banks, not saying give all £1.5m each. The debts should have been wiped out. Read Michael Hudson on this.

[Aussie515]

What would happens if you give everyone in the UK 1.5 mil pound? The bottom 90% of the population who hardly have more than a 1000 pound in their bank account at any one time. What do you think they'll do with 1.5 mil ? The chance of at least 20% of them migrate and retire in a third world country is pretty high. What happen to the exchange rate then? what about the level of inflation, 30 pound for a loaf of bread?The UK is more likely to turn into Zimbabwe than Switzerland.

[Elizabeth G.F.]

YES! We The people "Americans" just screwed and felt Disgustinglyl like Monica L??

[NearAbbeyRoad]

It would have cheaper in the UK to give every man, woman & child £1.5m each than bail out the banks - fact. HMG could have paid all debts in negative equity. A far better solution than to pour money into banks and let them do exactly what they were doing before. The ancient civilizations wiped out debts and they lasted 1000s of years. The post war Germany economic miracle was because ALL debts were wiped out post WW2. DEBTS CAN BE WIPED OUT. and should have been.