Money As Debt (2 of 5)
Quick and easy way to purchase silver: silversnowball.com Paul Grignon’s 47-minute animated presentation of “Money as Debt” tells in very simple and effective graphic terms what money is and how it is being created. It is an entertaining way to get the message out. The Cowichan Citizens Coalition and its “Duncan Initiative” received high praise from those who previewed it. I recommend it as a painless but hard-hitting educational tool and encourage the widest distribution and use by all groups concerned with the present unsustainable monetary system in Canada and the United States.
7:08 Wrong, wrong wrong. The banking system does not earn interest on 100 times the money or $100,000. You are adding it to the total with each transfer, but forgetting to subtract it from each previous bank. Once you figure that in, it never rises above the 9-1 ratio of $10,000. See my example below.
4:20 Wrong, when the other bank deposits the check, the first bank has to pay that amount to the other bank. So, while the second bank gains $10,000, the first bank loses $10,000, so the net gain by the banking system is zero.
@93N39 No. No need to peg it to anything.
@Gulegilly In a fractional reserve banking system, the deposit of $1000 goes to reserves, allowing $9000 to be loaned out. Now, there is a deposit, a cash reserve of $1000, and a laon of $9000 making $10,000 total, the reserve is 10%.
Nice video. On my channel you’ll find other very interesting videos
Virtually nothing that this video says is accurate. It’s a lie. Don’t believe anything presented in this video. Its an (fraudulent) advertisment for a business.
REJECT THE POLITICAL SYSTEM
there all in for the business,scams(E.T.C)
all these politicians are doing is brainwashing us to VOTE so they can make them self rich, and you don’t even notice.
focus on working to dissolve the outdated system of politics in favor of technological redesign.
MAKE THIS WORLD A SECOND GARDEN OF EDEN by joining the zeitgeist movement,watch the documentary and lets ALL STAND FOR WHAT IS THE TRUTH.
thezeitgeistmovement. com
@Irishfreedom If people werent buying houses that they couldnt pay back then the crisis wouldnt have happened.. and if the home lenders had some form of integrity then the financial crisis wouldnt have happened… and if the banks assessed the home loans then it wouldnt have happened.. it seems humans greedy nature is to blame not the banks.. and the system was to large to allow the “honest” people to see or stop it. thats my opionion
@mikesheen741 except banks dont have money or goverment has to pay to the banks so tax payers are paying to the goverment to pay to banks.
@Irishfreedom Yes but the far majority of tax is paid by the bank.
@Irishfreedom “So a bank can build a skyscraper by magically conjuring and multiplying money”
that is what happens.. Its no coincidence that in most major cities the biggest skyscrpers are owned by banks
Please have a look at:
youtube.com/watch?v=n_bKjVwS_0g
LEAKED NEWS. 1: BERNANKE, TRICHET and IMF reform to NEGATIVE INTEREST MONEY.
@clayp72, that’s why “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
Henry Ford
END THE FED – RON PAUL 2012!
@Irishfreedom Crazy, ain’t it?
@yankeessuck309 no i do not understand those concepts nor i know what u mean by them, especially not by the “m2″
@Gulegilly do you not understand the concept of MB, M1, M2, and M3???? it doesn’t take a genius to understand what you’re saying, which intuitively means that MB never changes. what i’m referring to is M2 when i say that 9x the original loan is created.
@yankeessuck309 money can expand infinitely, but with deposits changing banks not a penny can be created. If if FED would to double the amount of $ in the economy, you’d have more money than goods, leading to the increease of the prices of goods, or the (hyper)inflation. If there’s too little money prices would fall, (deflation).
@yankeessuck309 “9x the original loan is created”: you can not add up the deposits made without subtracting the loans given.if bank A loans 900 of its 1000 deposit, and bank B gets 900 deposit, that’s not “1900 or. loan created”,because the bank A doesn’t have 1000 in cash from the first deposit, but 100 in cash and 900 in receivables. so if bank A has 100$ in cash, and B 900$, there are still $1000 in total of the cash. no money is created.Only receivables get created, cash amount doesnt change
@Gulegilly financially speaking i would agree with your argument. mine is more of a philosophical argument. what i was saying is that the original loan, (which inevitably comes from a central bank), makes its way through various financial intermediaries, roughly 9x the original loan is created. therefore the money supply can expand infinitely regardless of the demand for goods and services.
it seems to me, that you mixed the increase of the asset and the liability side of the balance sheet with the “banks print/loan the money they don’t have”: look for the explanation i posted few minutes earlier.Assets and liabilities increase, but no money is created,because the equity doesn’t change: so if the bank receives 100$ of yours, they have +100$ of cash on their balance sheet, but also +100$ of obligation to you: their fin. position didn’t change. Only if they charge interests, fees etc
@yankeessuck309 that’s very stupid argument! If Bank A gets deposit of 1000 and later gives 900 loan, which ends up in the bank B, then Bank A has 1000-900=100 in cash, 900 in loans, and 1000 in obligations to the depositor. The bank B would have more cash +900, but more obligations to the depositor (also 900). Both loans and deposits just increase the asset but at the same time the liability side of the balance sheet. Only that goes up, but the net difference, or the net equity, doesnt change.
The whole monetary system is a f*#king scam
@93N39 Couldn’t the federal gov mint gold coins pegged to the GDP?