Crash Course: Chapter 8 - The Fed & Money Creation by Chris Martenson

Chapter 8 (The Fed Money Creation): Chapter 7 explained money creation via money loaned into existence by banks, on the local level. Chapter 8 explains money creation by the Federal Reserve, where we learn that it is manufactured out of thin air. Perpetual expansion is a requirement of modern banking. The banking system MUST continually expand, because that is how it was designed. By understanding the requirement for continual expansion we will be in a better position to make informed decisions about what is likely to transpire and take meaningful actions to enhance our prospects.

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[PositiveMoneyUK]

A biggest public campaign has started to end fractional reserve banking, look at the POSITIVE MONEY website and support the campaign ...and spread the word.

[T0B0KKE]

@hrmIwonder The fed creates money out of thin air, there is no counter-argument against that. You can't just argue that this video is misleading, because it is telling the truth that many people don't want to be known.

[doc7474]

"May you live in interesting times" - Chinese curse

[candistyx]

How does the UK make it's money?

[ReviewsByErik]

Obviously the problem is that this system REQUIRES perpetual growth. That's a fatal flaw in itself. You can't have perpetual growth.

[ReviewsByErik]

Damn, all this time I thought banks had to hold 90% in reserves and this video says 10% in reserves? That's insane! No wonder they're at risk for bank runs LOL

[303anzac]

This isn't just in the US it is happing in every western country in the world.

[abhisheksuraj]

@amanvds Well, that`s a wrong comparison. We are talking of 'loan money' and not 'food', whose demand will increase with the increasing population. Anyway, here are my two points on why demand will decrease - as the risk increases (home prices falling, banks crashing) and interest rates increase (money is costlier) demand for loans will come down. The reason why there is such a huge 'debt mountain' in the world, is that the interest rates were dirty low for a very long time - which is wrong.

[christo930]

I hope someone can answer this question! If all money is loaned into existence, how can the gov inflate away the debt? It can only create money by issuing new debt, therefor doubling the money supply to devalue debt can't work, because it had to take a loan equivalent to the existing money supply to inflate the original debt away, but it now owes twice as much

[bangmeister]

it was designed to collapse the US economy

[mentorgratis]

ok get it, Goverment has an outstanding debt for the next year, and it needs money to pay back. So the most probable scenario is borrowing money again, issuing more bonds, just in case goverment does not have money. But what happens if a responsible goverment saves and has surplus of money rather than a deficit, then they wouldn´t need print bonds to face its problems. No money creation from the government. Of course companies also issue debt and banks too, so that´s tricky isnt???

[amanvds]

@abhisheksuraj well abhishek how do u expect a decrease in demand by continues growing world population ... the increasing population will always put a stress on demand in one way or the other