All About the Money (Part 1 - Problems)

http://www.positivemoney.org.uk/dvd

When the chief economics editor at the Financial Times writes that the essence of the contemporary monetary system is:

"the creation of money, out of nothing, by private banks..."

then it might be time to pay more attention to where your money comes from.

This talk, delivered by Ben Dyson of Positive Money, explains why almost everyone is in debt, why the financial crisis continues, and how the current banking system (which the Governor of the Bank of England described as the worst possible) is at the root of most of the social and economic problems that we face today.

Discover the few simple changes to banking that would reduce debt, poverty and economic instability and that would ensure that the reckless behaviour of banks could never threaten the global economy again.

Join the campaign for real reforms to banking at
http://www.positivemoney.org.uk

Category:

Education

Tags:

• money
• money as debt
• banking reform
• positive money
• financial crisis
• debt
• poverty
• inequality

[monkeybrainsmediauk]

I have a question that is bugging me. If I have a credit card with a zero balance but £10,000 credit limit, does the bank behind the card get to trade and gamble with this credit limit as if it has an asset value despite the fact I have not really used it or "borrowed" against that limit on the card? i.e. was 0 money created in this process because the balance is 0 or 10,000 because I have promised to be liable up to that amount?

[PositiveMoneyUK]

@monkeybrainsmediauk

With credit cards, the 'money' in the form of bank deposits (numbers in your account) is only created when you actually spend something on the card, no matter what your credit limit is. So no, they don't get to trade or do anything with your credit limit.

[python178]

i think its important to note that this banking system or" fiat money system" is used all over the world. as a matter of fact i cant think of one economy that uses a system backed by .... well by anything

[reevolutionable]

the systems broken and completely insane!

so basically everyone lose? 

[SOSTacoJohnson]

You guys just aren't doing enough to get this video out there. I don't care if you make a secondary video and spam it out, knowing it will be rated down for spamming. People need to understand how to change the banking system, or all revolutions will be exercises in futility.

[supplementcouponcode]

a brilliant video - well done!!!

[jsd23]

I just spent two hours transcribing this video, before remembering it's possible to extract a video's captions to a text file. No regrets though because copying down the words myself makes it easier for me to remember what was said and ask questions, such as:

It was said the banks decide where the newly created money goes in the real economy. But surely their options are limited to organisations that are asking to borrow?

[tallicalad]

Businesses cannot just continue to grow... You cannot have infinite growth within a finite world.

[tallicalad]

You say in this video that Robert Peel passed a law which meant the BOE could only generate money, bringing it under control of the state but the BOE was private until the late 60s, early 70s.

[monkeybrainsmediauk]

@Wulfyn99 You a right of course that it would be a gamble to lend me something they actually had but remember, if they can create something out of nothing before 'lending' it to me then they aren't actually 'lending' something in the traditional sense that most people assume is the case. This is what is so counter intuitive about this whole monetary system. Most people assume they are actually lending, not creating, so the absurdity and dangers remain hidden to most.

[Wulfyn99]

@monkeybrainsmediauk

They are gambling with the 'money' by letting you borrow it.