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Banking "Explained" In 6 Minutes
Banks are a riddle wrapped up in an enigma (as we just described what unsound banking is). Everyone kind of knows that they do stuff with money we don’t understand, while the last crisis left a feeling of deep mistrust and confusion. We try to shed a bit of light onto the banking system. Why were banks invented, why did they cause the last crisis and are there alternatives?
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I don't need a 6 minute video to explain usury.
This video is a contradiction in terms. It describes a Counterfeiting System, not a Banking System.
Here ya go, Chump, this is Banking:
"7. It is presumed by the term fractional reserve banking that the reserves at a bank are money. Our inquiry now brings us to the following question. What is a bank? Banks store money, pool money, and loan money. The purpose of which is to earn a return on that money. Those who provide this service of lending money do so in their own interest. Their interest is that the borrower may use the lenders money at a price such that when the borrower returns the money that they return more money than they borrowed. It is a risk to the lender that their money be returned at all. Therefore, the longer they have this risk then it is in their interest to demand that a larger excess of the borrowed amount be returned to them. This interest then is the price that lenders demand if they are to separate themselves from their money now for it to be returned to them later. The same interest is the price that borrowers agree to pay to meet their demand for the total amount of money now instead of having to wait to obtain it later after performing productive work. What we have just said let us say again with the recognition of our reasoning that money represents productive work. Banks store the representation of productive work, pool the results of productive work, and loan what comes from productive work which has already been performed. The purpose of which is to earn a return on that productive work. Those who provide this service of lending what comes from productive work do so in their own interest. Their interest is that the borrower may use the lenders representation that productive work has already been performed at a price such that when the borrower returns the productive work that has already been performed that they must return the representation that more productive work has been performed than the amount borrowed. This money loaned by a bank, this fact that productive work has been performed and is then stored, set aside, and retained for future use by the bank, is the nature of the bank's reserve. The reserve itself is the total amount of money at the bank. It is a reservoir of wealth that represents the totality, the whole amount, of work which was required to produce it. Just as it would be impossible for the inhabitants of a city to extract from its reserve any more water than is stored in the reservoir, so to is it impossible for a bank to loan any more money than that which is stored in its reserve. Something cannot come from nothing. The reservoirs must be replenished if they are to provide value again. Just as it would not be prudent for the inhabitants of a city to use their water frivolously, especially during times of large draw downs and depletion of the resource, so too must the bankers be wise as to what ventures they allocate their money to be engaged. Therefore, a bank is a business that loans money from its reserve of money as the means of receiving back more money than was loaned and it seeks to conserve its reserve of value for the purpose of maintaining its business of producing value. Therefore, a bank is a business that loans the representation of productive work from its storage of already performed productive work as the means of receiving back the representation that more productive work has been performed and it seeks not to draw down or deplete too much of this reservoir of value for the purpose of maintaining its business of producing value.
8. With respect to the business of banking, values abound. The money stored is a value to those who store it for the safety, for their participation in the bankers same interests, and for its ability to be withdrawn and used as a medium of exchange for other values. The money stored comes from the production of values. The production of values satisfy the demands of living and this satisfaction is a value itself. The money loaned is a value to the lender since it is the means to obtain more money. The money borrowed is a value to the borrower since this is money they can use now instead of later. That the borrower must perform more productive work as the means of obtaining more money to pay back than was borrowed not only meets the value demanded by the lender but it is also of value to whomever else exchanged their money for this extra productive work. The banker is always at risk. The banker must choose wisely as to how the banks reserves are allocated such that the reserves plus their interest are returned. This risk activates the banker to decide which demand for the loan is best with regards to assuring the money's return. The borrower is always at risk. The borrower must choose wisely as to how best manage their ability to perform the productive work necessary to pay back the loan and not have to lose whatever collateral they choose to pledge for the loan. The risk activates the borrower to decide if they can meet the bankers demand or how much they can stand to lose if they cannot. Therefore, even the risk is of value as it determines which demands for the banks reserves are most valuable both with respect to the borrowers ability to perform the required productive work and with respect to the lenders ability to decide that the borrowers performance will indeed be productive and therefore a wise investment from the bankers reserve. Risk is a primary variable in the decision making process as how best to endeavor upon the most desirable course of action. The business of banking then is the business of any business in that all the parties involved are finding that their demands for value are being met. Remember that since money is mediating the exchange of all these values that each participant is therefore receiving full value for their demand. We reiterate. The builder does not demand 1,000 pairs of shoes from the shoemaker for the house he built. Instead, he demands the value of 1,000 pairs of shoes in the form of the unit which measures all value. The shoemaker does not demand a window or a door from the builder for his pair of shoes. Instead, he demands the value of 1/1000th of a house in the form of the unit which measures all value. The house and a pair of shoes are not equal nor is 1 unit and a 1,000 units. The unit of measure equalizes the exchange so that 1 unit equals a pair of shoes and 1,000 units equals a house. This equalization of value determines that both sides of the exchange must be of equal proportion, or of full value. That the bank seeks to gain value by lending value and that the borrower must produce more value as the means of returning the interest on the value affirms that banking is a value performed to meet the demands of living. Everywhere in the interaction of all those involved value is only added. Value is never subtracted. This must be so not just for banking, but the nature of all business is that it adds value to meet the demands of living. That value is never subtracted presumes that the business is successful, that the risk was well mitigated, and that the demands are met. The banker's product is the reserve. To not have a loan returned would necessarily diminish the reserve. Conserving a large portion of the reserve as the means of having any product left to exchange at all is naturally prudent and conservative. Therefore, banks choose to retain a large portion of their product on reserve and not have too much always on loan. In this manner then what is loaned is only a fraction of the whole reserve. The bankers business is to store depositors money, pool the funds together, and loan from the total reserve. If the depositor demands not to have their money pooled but only wants the bank to store it for them so that they can withdraw it at their leisure, then the banker should always have that money on reserve. Not any other money but specifically the exact money that was demanded not to be pooled. It is not to be pooled and loaned unless agreed upon. This is another reason that the banks reserve is never to be drawn down too far. By too far, then logically there is always a one for one correspondence between the banker's reservoir of money and what has been removed from the reservoir for loans. This fact deems that a reserve should never be below 50% if the bank is to be prudent. If 50% of the money were on loan and 50% was still in the reserve, then the banker would also have in possession the agreements that account for the money that is on loan. These are agreements representing that money is on loan. These agreements are not money." -OC Sure
The federal reserve bank of chigaco explains it best with Modern Money Mechanics.
Read it here:
http://www.rayservers.com/images/ModernMoneyMechanics.pdf
I don't need a 50-page .pdf to explain usury.
Right, you are need 141 page Patman Primer on Money, release in 1964 by Congress after assassinate Kennedy.
What a bogus video. This don't explain it at all. Another obfuscation from those who care.
Let's see, savers put their money in the bank and get interest. The banks then loan this money out?
What a bunch of BS.
@OC Sure,
That is bullshit, and is not banking.
This is banking...
Money is created totally out of thin air and is loaned out with interest as usury to oppress people's labor.
No reserve whatsoever is needed.
All funding requirements can be met by the central bank or within interbank operation.
Depositors withdrawing all their savings, by right, do not lead to bank run.
Bank run is just a facade to cause panic.
Interest is charged, with the clear awareness that there is just not enough money supply going around to pay for such interest.
Thus during "good" (read expanding) times, the banks create money at an average long-term rate of 6% to ensure the debtors will be able to service their debt satisfactorily.
During "bad" times (read contracting) times, the banks restrict money creation and money supply no longers are sufficient to repay all debt with interest.
Debtors that fail to be more productive than others will have their properties confiscated.
Through "expansion" and "contraction" (read inflation and deflation) of the money supply through credit, the banks have the opportunity to take advantage of such economic volatility to take possession of public ownership until everything is under the control of the banks.
Even standing armies do not have such influence.
Money/currency is used as a means to store value of "work effort"... makes it easy to carry it from trading partner to trading partner... for this convenience money/currency holder is willing to fractionally dilute the value of their work effort... think of this dilution as a transaction cost, or even a fee and providing insurance (risk management) to have such a convenient way to store work effort.
other dilution in the value of the "work effort" occurs over time (similar to a stock or index option) in that governments increase the amount of currency in circulation naturally ( immorally) over time. Retirees have less true value than at the time they saved or transformed their "work effort" into a currency or other storage method. My father made $13 per hour during his best work years at a brewery... I don't get out of bed for less than $65 per hour today, and yet my father was more able to successfully raise 4 kids and send some of them to college. Note: the currency has been diluted to that great of an extent...
Other dilution occurs due to the "John Corzine affect"... and will certainly continue to occur in the years to come...
at some point your government will choose to confiscate your work effort stores mainly because it's really only a convenience or service your bank/ government kindly provides to you anyway... it's not real... just a concept or tool designed by the money changers... whom by the way of course are just puppets of the kings anyway and will again be taxed 100% of what they legally make. Oh wait, we're not greece!!!.... not yet!
OC Sure wrote: "themselves from their money now for it to be returned to them later." Nonsense: it's not their money, the banks play with other people's money.
That's not really how loans work, loans are created out of thin air, not depositors funds
Yeah.
At least the friendly neighborhood loan shark actually has some skin in the game.
Yes agreed, the video doesn't touch on the most important point that Banks CREATE money as debt Money the moment they make a loan. It is this process of creating infinite amounts of money as Debt (aka counterfeiting if you or I were to do the same) which is at the heart of the problem. The average man on Main Street doesn't understand this and 99% believe that it is "The Government" that creates money.
Currency of citizenry is hard work and is symbolize by specie of money. Sole currency of bank is credibility. Former is create wealth, latter is dilute, skim, and rob wealth of former.
Exactly! Not only that, but fleecing the depositor in the process.
Wells Fargo, with their very best offer gives you %.15 -that is 15 hundredths of 1% interest.
Meanwhile, they charge at least 3.5% for a 30 year mortgage.
With $1 of your money, thanks to the 'magic' of fractional reserve banking, they can loan $10 (or more these days it seems)
So, every year, your $1 earns .15 cents, or 15 hundredths of 1 cent -while the $10 your $1 allows them to loan earns the bank 35 cents.
It takes you 6 years to earn a full penny off your dollar; while your dollar lets them earn > $1.75 over that same time. In twelve years, you have 2 bright shiny pennies, and the bank has nearly 4X your original deposit, just in interest.
Under fractional reserve banking (because they can multiply your deposit by 9X minimum) they should be paying depositors a bare minimum of 3X the usury they charge on the loans they offer.
Amerikanski bank is lend on 1 to 9 ratio, but after time, asset and liability of same debt is net zero so as can lend 1:99. This rare happen, however, because is repayment of loan over time is lower ratio. But if average stupid head citizenry is understand this concept, rush to bank for withdrawal of cash.
"It is well enough people of nation are not understand banking and monetary system, for if they are, I am believing there would be revolution before tomorrow morning."
-- Henry Ford
LMAO
Even when Boris is of doing quoting, is in broken Russish.
Blue, you are wrong. There is no "money multiplier", that is a debunked myth.
Banks create credit based upon the value of the asset tendered as collateral.
They don't loan reserves or deposits, they create deposits and reserves from loans.
https://youtu.be/YnAtHbDptj8
http://carl-random-thoughts.blogspot.com/
the Frog
I hate to admit it, but the banks could have stratified different businesses and their market areas with proximity to factories and machine shops servicing the Auto Industry or any industry and ... provided credit, lower interest rates, favorable terms... until the factories and business went off shore.
Maybe the Multiplier was just banks extending good terms/easy terms in the neighborhoods and communities????
Banks are in it to make money. Fuck you and your community. Risk? that is for taxpayers!
What was described in the first two minutes is a utility. Something that should be regulated tighter than the electric company. Somehow the bankers have conned the pols (a lot of contributions, maybe?) that they are doing something far more noble. Which is all horseshit. Throw all those fuckers in jail. There will be more to replace them.
missing the essential money creation part
WTF.
Not one mention of the Rothschilds?
What fucking drivel. Not interested.
The Rothschilds - Shares In Waterloo:
https://www.youtube.com/watch?v=9ERcC1l6cRM
I don't need a film about the Rothschilds to explain... oh, wait...
As others have pointed out... there is a glossing over of the merchandise, service, product, and most important those responsible for the the problem.
Oh Lehman caused it all!!
Suck my shit. Lehman & Bearstearns & LTC are the ones. S/
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USA is lucky it did not end up in War with Europe or others.
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And now BB Yellen is hinting... well if you regulate us... your interest rate will go to 5%-6%-8% in a decade.
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Pushback from the Private Stock holder owned Central Bank of Wall Street/London/Frankfurt
- We will eat your lunch with Financial ratings, Audits, and Higher Interest Rates - Blackmail Muthu-Fuckers!!
Edith, it's those damn kikes again!
Its the KIKES game to fleece the goy as taught in their ancient laws. (I have read the annotated translations on their own websites)
The kikes have been gaming the goy for 2000 years and they have not changed because they "think" they are better than the rest of us.It is no wonder why they have been EJECTED from over 100 countries over the last 1500 years. Because of their manipulative, usry and fraudulent ways.
Remember, Shakespeare did not write the Merchant of Venice on a whim... it was inspired by observations of the KIKES standard operating procedures.
Time to boycott the banking system as I have. WAKE UP SHEEPLE, THE KIKES ARE FLEECING YOU!
Only 87 Countries... But 109 times lol
this explains a few things that dont often see the light of day
https://www.youtube.com/watch?v=nnyHtPxBZn0
How did I miss that latest upload? I always enjoy watching anything from Dennis Wise.
Give my channel a look if you want, I make videos on similar topics.
https://www.youtube.com/watch?v=5H2wr0khnJA
This a cartoon I would expect to see in 5th grade.
Please accept that the major business of commercial banks is creating money out of thin air (and charging interest on it). A scientific paper about the empirical evidence: http://www.sciencedirect.com/science/article/pii/S1057521914001070
Yeah, it's called "fractional-reserve banking."
Thanks for that link, rman73,
it stated IMPORTANT POINTS:
From Tragedy and Hope by Carroll Quigley:
"powers of financial capitalism
had another far-reaching goal,
nothing less than to create a
world system of financial
control in private hands
able to dominate the
political system of
each country and
the economy of
the world as
a whole ..."
That system was "to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements. ...The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. ... It must not be felt that the heads of the world's chief central banks were themselves substantive powers in world finance. They were not. Rather they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up, and who were perfectly capable of throwing them down. The substantive financial powers of the world were in the hands of these investment bankers who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful, and more secret than that of their agents in the central banks."
From Silent Weapons for Quiet Wars:
"Energy is recognized as the key to all activity on earth. Natural science is the study of the sources and control of natural energy, and social science, theoretically expressed as economics, is the study of the sources and control of social energy. Both are bookkeeping systems: mathematics. Therefore, mathematics is the primary energy science. And the bookkeeper can be king if the public can be kept ignorant of the methodology of the bookkeeping. ... In this structure, credit, presented as a pure element called "currency," has the appearance of capital, but is in effect negative capital. Hence, it has the appearance of service, but is in fact, indebtedness or debt. ... if balanced in no other way, will be balanced by the negation of population (war, genocide)... They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor ... War is therefore the balancing of the system by killing the true creditors (the public ...)"
From Debt, the first 5,000 years, by David Graeber
"If history shows anything, it is that there’s no better way to justify relations founded on violence, to make such relations seem moral, than by reframing them in the language of debt — above all, because it immediately makes it seem that it’s the victim who’s doing something wrong."
Indeed, almost all of our public "money" is created out of nothing as debts. However, the video embedded in the article above did not refer to that fundamental fact at all!
I reread that article you linked again, and think it deserves more emphasis:
http://www.sciencedirect.com/science/article/pii/S1057521914001070
Can banks individually create money out of nothing?
— The theories and the empirical evidence
"... According to the financial intermediation theory of banking, banks are merely intermediaries like other non-bank financial institutions, collecting deposits that are then lent out. According to the fractional reserve theory of banking, individual banks are mere financial intermediaries that cannot create money, but collectively they end up creating money through systemic interaction. A third theory maintains that each individual bank has the power to create money ‘out of nothing’ and does so when it extends credit (the credit creation theory of banking). The question which of the theories is correct has far-reaching implications for research and policy. Surprisingly, despite the longstanding controversy, until now no empirical study has tested the theories. This is the contribution of the present paper. An empirical test is conducted, whereby money is borrowed from a cooperating bank, while its internal records are being monitored, to establish whether in the process of making the loan available to the borrower, the bank transfers these funds from other accounts within or outside the bank, or whether they are newly created. This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, "out of thin air". ...
2.4. Conclusion of the literature review
Since the 1960s it has become the conventional view not to consider banks as unique and able to create money, but instead as mere financial intermediaries like other financial firms, in line with the financial intermediation theory of banking. Banks have thus been dropped from economics models, and finance models have not suggested that bank action has significant macroeconomic effects. The questions of where money comes from and how the money supply is created and allocated have remained unaddressed. ...
5.2. The empirical evidence: credit creation theory supported
The second contribution of this paper has been to report on the first empirical study testing the three main hypotheses. They have been successfully tested in a real world setting of borrowing from a bank and examining the actual internal bank accounting in an uncontrolled real world environment.
It was examined whether in the process of making money available to the borrower the bank transfers these funds from other accounts (within or outside the bank). In the process of making loaned money available in the borrower's bank account, it was found that the bank did not transfer the money away from other internal or external accounts, resulting in a rejection of both the fractional reserve theory and the financial intermediation theory. Instead, it was found that the bank newly ‘invented’ the funds by crediting the borrower's account with a deposit, although no such deposit had taken place. This is in line with the claims of the credit creation theory.
Thus it can now be said with confidence for the first time – possibly in the 5000 years' history of banking - that it has been empirically demonstrated that each individual bank creates credit and money out of nothing, when it extends what is called a ‘bank loan’. The bank does not loan any existing money, but instead creates new money. The money supply is created as ‘fairy dust’ produced by the banks out of thin air. The implications are far-reaching. ...
5.4.1. Implications for economic theory
The empirical evidence shows that of the three theories of banking, it is the one that today has the least influence and that is being belittled in the literature that is supported by the empirical evidence. Furthermore, it is the theory which was widely held at the end of the 19th century and in the first three decades of the twentieth. It is sobering to realise that since the 1930s, economists have moved further and further away from the truth, instead of coming closer to it. This happened first via the half-truth of the fractional reserve theory and then reached the completely false and misleading financial intermediation theory that today is so dominant. Thus this paper has found evidence that there has been no progress in scientific knowledge in economics, finance and banking in the 20th century concerning one of the most important and fundamental facts for these disciplines. Instead, there has been a regressive development. The known facts were unlearned and have become unknown. This phenomenon deserves further research. For now it can be mentioned that this process of unlearning the facts of banking could not possibly have taken place without the leading economists of the day having played a significant role in it. The most influential and famous of all 20th century economists, as we saw, was a sequential adherent of all three theories, which is a surprising phenomenon. Moreover, Keynes used his considerable clout to slow scientific analysis of the question whether banks could create money, as he instead engaged in ad hominem attacks on followers of the credit creation theory. Despite his enthusiastic early support for the credit creation theory ( Keynes, 1924), only six years later he was condescending, if not dismissive, of this theory, referring to credit creation only in inverted commas. He was perhaps even more dismissive of supporters of the credit creation theory, who he referred to as being part of the “Army of Heretics and Cranks, whose numbers and enthusiasm are extraordinary”, and who seem to believe in “magic” and some kind of “Utopia” ( Keynes, 1930, vol. 2, p. 215). ...
To the contrary, the empirical evidence presented in this paper has revealed that the many supporters of the financial intermediation theory and also the adherents of the fractional reserve theory are flat-earthers that believe in what is empirically proven to be wrong and which should have been recognisable as being impossible upon deeper consideration of the accounting requirements. ...
5.4.2. Implications for government policy
There are other, far-reaching ramifications of the finding that banks individually create credit and money when they do what is called ‘lending money’. It is readily seen that this fact is important not only for monetary policy, but also for fiscal policy, and needs to be reflected in economic theories. Policies concerning the avoidance of banking crises, or dealing with the aftermath of crises require a different shape once the reality of the credit creation theory is recognised. They call for a whole new paradigm in monetary economics, macroeconomics, finance and banking ..."
what about the jews? they are the core of finance
Banks, the fraudulent-reserve type, are really a continuation of the world's real oldest profession, theft and fraud.
First there were shamen, milking the people by way of focusing and building the people anxieties about life's fragilities.
Then there came the pols and crats, "slithers," milking the people with promises of a share in loot stolen from others.
Then there are the banksters, and Zion, plundering the people utilizing the people's own wealth stolen from them.
Liberty is a demand. Tyranny is submission..
except a real shaman will serve the community and possess healing potential. shysters, not so much.
no such thing as spiritual welfare - you do the work or you do not accumulate the potential.
Gosh and I always thought banks were in the business of enslaving people with debt, thereby controlling them and then parasitically taking a disproportionate portion of their labor earnings to keep people from ever freeing themselves from debt.
Banks act as government mandated monopolistic arbitrage systems that sell money for more than they buy it for and since they control the money supply they can always ensure that the rest of the world can never receive fair value for their money.
Today's banks also directly and indirectly control prices of all commodities, equities, properties, jobs (including politician jobs) and currencies. Given this vast self-appointed responsibility, it is no wonder that they often cut corners to ensure they maximize the benefit to themselves.
Heads we win, Tails you lose!
Bad day. I try to refrain from drinking spirits ( brandy's my tipple ) in the summer. So i'm on my third beer and since the GEEK ReferenDUMB Adverse there's this sour taste in my mouth that refuses to go away. I'm giving it 3 more chances to disappear or that's it for tonight.
Even the casino's can expect a bad year, not these fucking bankers.
Heads we . . . .
Submit a few lineups in the millionaire maker and watch the British Open tonight. Getting shit-faced and watching people smack the small ball around will get rid of the sour taste.
This explains it better. "Southpark Banking and it's gone..."
https://www.youtube.com/watch?v=-DT7bX-B1Mg
It wasn't very accurate. Left out a lot of key items, like fractional reserve banking, for one. The role of the central banksters. Artificial suppression of interest rates and the role that had on blowing bubbles etc.
I think this video by Auburn economics professor Roger Garrison at least shows why that central bank intervention is so deleterious to an economy and the society that depends upon it:
Austrian Theory of the Trade Cycle | Roger W. Garrisonhttps://www.youtube.com/watch?v=zhoFOyy7rbo
What the fuck was that? Not one word about the creation of money through the extension of credit?
Damn.....
Just ask yourself (and any banker) what happens to their business when INFLATION is guaranteed to be zero ... all the time ... everywhere.
To meet this guarantee is trivial.
To meet bank's resistance to a process that can deliver zero INFLATION is truly enormous.
The solution is to form small trading groups that employ the proper management of the Medium of Exchane (MOE) they trade with. Banks cannot compete with these groups. If there are enough of them, banks wilt on the vine.
And having multiple groups is no problem. When INFLATION is guaranteed to be zero, exchange rates between the groups are guaranteed to be constant.
We really need to start.
Worst explanation of banking EVER - classic propaganda perpetuating the great myth of banking, deliberately conflating full reserve & fractional reserve systems. At 1:26 an "explanation" is offered of how it supposedly works. Good citizens DEPOSIT money, and the bank then LOAN is out making money on the difference in interest rates, "So banks take funds that are unused funds by saver, and turn them into funds that society can use" No mention of the credit creation process that creates loan out of thin air on which interest is subsequently charged.
There are myrid informational videos on youtube pertaining to banking. I wonder what the author's thinking was on choosing this one to post here.
What cause the last crisis can't be covered in 6 minutes. I do not have a problem with money being lent with interest, so what is the bugaboo about that with some folks? Even mohammedians take interest on loans even though they don't call it interest. I'd take Barnhardt's The Economy is Going to Implode series of videos over this any day.
Just a bunch of Pablum to remove the truth that banksters were, and continue to be, criminals and major scumbags and should be thrown in jail or killed for amusement.
Actually the author deserves being thrown under a moving bus for taking part in the crap.
Literally the worst explanation of banking I've seen. Flies through the history of banking in a couple seconds, is flat out wrong about how modern banking works, then goes into extreme detail about the "financial crisis", which shouldn't have been mentioned at all in a 6 minute video about banking, money and credit. Points fingers, then blabs on about a bunch of modern fads like crowd funding.
Banking explained in one word.
FRAUD.
Bitcoin users are not affected by our inherently fraudelent banking system.
Horrible video. Doesn't even come close.
What a piece of crap.
I've seen better on Sesame Street re-runs.
You should call this, "Control of the masses explained in 6 minutes."
Arrest anyone with over 10,000,000 and launch them from the pyramids.
Enough is enough! Nationalize the banks and requisition them to serve the People and throw the fascist bankster criminals in prison!
If the criminal banksters were prosecuted for American mortgage fraud back in 2000 the criminals would have been in prison instead of destroying the economies of the world with their New World Order. What is the difference between the $140,000 each American citizen owes to the banksters and the few thousands owed by Greek citizens?
FASCIST (government of, for and by the multinational bankster corporate monopoly) TAKE-OVER is foreign to American representative democracy and Greek direct democracy (government of, for and by the People).
The modern fascist are criminals to our democracy Justice System that the fascist criminals have overthrown by the criminal tools of corruption and theft: fraud, forgery, bribery, bunko and Ponzi schemes, cohesion, extortion, embezzlement, theft, murder, and any other criminal act to farther their control and power over the People.
The central bankster criminals have declared war on the Peoples of the World with fraudulent debt implemented and foisted on the leaders of democratic nations.
Fraud by representative debt on to the People was the bankster criminal plan from the beginning of the European Union and American debt. The central banksters have set out to bankrupt nations by debt and take over the country assets; to hell with the People.
The People have said emphatically and democratically “NO” to criminal fraud and debt. It is time to hold a Peoples Court for Justice and arrest and charge the criminals with their crimes. Seize all bankster multinational assets until the end of the trials and forfeiture of the assets if found guilty. The criminals have destroyed your democracy set of criminal laws, so a Peoples Kangaroo Court is your only civil defense to restore your universal criminal laws.
Don’t destroy your own civic property, seize their property.
Good job.
Pathos, Logos, Ethos.
Simplify, Streamline, Standardize.
Cronyism shrinks with the above principals.
Nice job Tyler. It will sink into the minds of muppets.
After glancing through the other comments posted previously above, I was not surprised to agree with most of those comments. That video was worse than useless! Any discussion of the established monetary system that does not focus upon the central facts that governments are enforcing frauds by privately controlled banks is deliberately deceptive BULLSHIT!
I am surely NOT going to add that video to my collection of Excellent Videos on Money Systems ... Most of those videos whose links I have collected there have previously been featured on Zero Hedge ... However, a lot of those LINKS tend to BREAK, and so, one has to search to see if one can find some new ones.
E.g.:
http://www.zerohedge.com/news/2012-10-14/top-15-economic-truth-documentaries
Zero Hedge’s collection of economic truth documentaries.
About half of the LINKS there have now been BROKEN.
I REPEAT some of what I previously commented there:
The overall situation continues to be that more rational evidence and logical arguments mean nothing to systems based on lies, backed by violence. After we figure out what has been happening, there is still nothing practical that can be done to stop the established trillionaire mass murderers from punching their debt engines on through hyper-drive! The banksters and their buddies already dominate the mass media, and control their political puppets. Any miraculously successful politicians, that might be able to change things, would end up being discredited or destroyed in order to prevent that. Moreover, in my view ALL the videos of this kind that I have ever watched fit the pattern of "reactionary revolution." They usually spend 90% of their time doing good historical analysis, then followed the last 10% presenting bogus "solutions" based on impossible ideals, that depend upon false fundamental dichotomies.
I have never yet seen any video of that kind which continues to be consistent through its ending, with what it demonstrated before that ending. The history has been the triumph of the methods of organized crime taking control of governments: LEGALIZED LIES, BACKED BY LEGALIZED VIOLENCE. The general abstract pattern demonstrated by the historical facts are based on SUBTRACTION and ROBBERY. The only genuinely realistic solutions would be based on changing the organized systems of lies, to operate a differently organized system of robbery. The best we might hope for is to try to more effectively fight bullshit with bullshit, in order to change the social rates of robbery to bring them back into better ecological balance.
The most "successful" people were those who are the best at being dishonest, while appealing to their particular viewers. As in the case of the video above, the main technique is LYING BY OMISSION. Since almost nobody likes more radical truth, that radical truth almost never gets made into videos. Instead, we have mainstream morons making videos for other mainstream morons, and reactionary revolutionaries making videos for other reactionary revolutionaries, ... and pretty well nothing else could be actually made, and presented, because there is only a fringe of a fringe of a fringe audience for more radical truth.
The funding to make videos about the monetary system is just another subset of the overall problems with respect to funding the political processes in general. The trillion dollar mass media make trillion dollar videos, (practically all the mainstream movies and TV shows) to support their view ... and then proportionally less money is spent to make videos for the fringe market, and then the fringe of the fringe market, and then, the fringe of the fringe of the fringe market. Ironically, the more times one goes through that process of going through the infinite tunnel of deceits, regarding the runaway fraudulence of our financial accounting system, the closer to the economic truth one gets.
The economic truth follows the pattern of that radical truth. Economics is a dismal science, and the more one knows the more dismal it becomes. Thus, dismal squared, dismal cubed, and so forth. Similarly, the more radical economic truth becomes fringe squared, then fringe cubed, and so on ...
We should make videos about economic truth that are consistent with energy laws and general systems theory, and especially consistent with evolutionary ecology. However, the number of viewers for that is way too small to sustain making those kinds of videos. Generally speaking, the REAL systems are based on lies, backed by violence, and so, the REAL solutions could only be changing to different systems of lies, backed by different systems of violence. ... So far as I am aware, better videos about that have never been made yet, and it is hard to imagine how they could be paid for, to get made. Those who most benefit from running their degree of participation successfully within the established systems of fraud and robbery, in proportion to that, do not want to face the radical economic truth any more, and neither would any potential audience. The relative wealth and power of those who have the means to communicate were due to the proportions to which they were successfully dishonest, to themselves, as well as others.
The economic truth about the money system is buried as deep as the truth about war. The history of war has always been that success in war was based on deceits, and that spies were the most important soldiers. The money system depends on the same factors. The history that made War King, then morphed to make Fraud King.
I REPEAT: the 6 minute video featured in this article above was EXTREMELY BAD, since it did not mention whatsoever the most important social facts, which are that GOVERNMENTS ENFORCE FRAUDS BY PRIVATELY CONTROLLED BANKS.
Straight from the horse's mouth. Bank of England Q1 Bulletin 2014:
http://www.bankofengland.co.uk/publications/Pages/quarterlybulletin/2014...
"In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money. The reality of how money is created today differs from the description found in some economics textbooks:
• Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits.
• In normal times,the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits."
Loans beget deposits.
It's right in front of your fucking face.
I must say that by having supplied that quote, you have provided an oddly warm and comforting service.
Simple man, simple dreams.
Modern banking has nothing to do with banking at all. That is why the brokerage firms and investment houses were allowed ro convert to "banks" during the "crisis." Modern banking is all about trading and creating other transactions that are trading but designed to look like something else, and manipulating markets and regulators.
Trading is money creation. Levered on a 8% capital charge, buying in all kinds of crap is creating money. Duh. That's now the role of central banks. Buy up all the crap that the treasury is printing along with all the mortgage paper that the agencies are guaranteeing. Create vast oceans of free money for the "banks" to buy other crap so they can make spread income and pay themselves huge bonuses, until the bloated balance sheets collapse again.
Explain to me again how inflation impacts the cost to the Treasury of repaying all those bonds they issued??? What if inflation comes with higher interest rates???
Hey!! The Treasury actually extended its maturity at the lows! It's a miracle!!!
No, banks do not lend out deposits, that's a myth.
When a bank makes a loan, the level of deposits in the bank is unchanged.
What HAS changed is that a fraction of those deposits have now been promised as collateral against the loan that was just made. So if the loan defaults, then the deposits are lost (to the bank, not the system). The money lent out was created out of thin air which is inflationary. When it is repaid, the effect is reversed: the money is eliminated into thin air and the effect is deflationary. (Overall inflation depends on the ratio of lending to repayment, the ratio of available goods and services to available money, the number of defaults, and the transactional velocity of money in the economy. Ie, stock AND flow).
Money is created when banks make loans meaing that deposits are created when banks make loans and deposits are destroyed when loans are repaid. But at no point are deposits ever "loaned out", that is simply not the way modern banking works and the video has it wrong.
No debt, no money, that's the world we live in, one in which we are told that governments can't be trusted to control money stock and that democratic elections can't be relied upon to evict govenments that are poor inflation managers, so therefore we must privatize money creation to banks. Subsequently deprived of the ability to create money (even though it's in the Constitution!), governments must then borrow it into existence like everyone else (or raise it in taxes / fees), hence allegedly imposing discipline on government spending and it's all supposed to be unicorns and rainbows from there.
No mention of the fact that the private banking cartel is even more reckless than governments when it comes to creating money, and has a terrible track record of managing inflation.
No mention of the fact that, removed from government control and privatized, there is no avenue for citizens to punish poor inflation management because banksters do not have to face elections.
No mention of the fact that governments, deprived of money creation power, will instead raise taxes to fund operations, thereby creating an entirely new expense to add to (now privatized) inflation meaning everyone gets poorer. (Why do you think income tax appeared with the creation of the Fed?).
No mention of the fact that governments, deprived of money creation power and unable to raise taxes due to voter backlash, will instead run up massive debts to retain service provision, subsequently subjugating the nation to lenders.
No mention of the fact that the only other option for a government (after borrowing or taxes) is to cut expenditure and shrink, creating a power vacuum that is rapidly occupied by other powers who are not accountable to elections. Frying pan to fire.
No mention of the fact that if a government chooses to cut essential services then provision must be taken up by the private sector. In the case of natural monopolies (such as networks for water, power, communications, transport, sewerage etc), a public monopoly under the oversight of democracy becomes a private monopoly under no oversight at all leading to even shittier service at a higher price (aka Oligarchy / Plutocracy).
The answer is right there in the Constitution:
- To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
- To provide for the Punishment of counterfeiting the Securities and current Coin of the United States.
The Fed is illegal. Bank creation of money is illegal. They get around it with lawyer weasel words by essentially arguing that the Constitution only refers to Coin but modern money isn't coin. Hence Treasury still retains minting rights for coins, but digital money is all banks (97% of all money). Even note printing is now the domain of the Fed, not Treasury.
So return money creation to the government under democratic oversight, as the Constitution obviously means (which in today's money system means nationalizing banks). Taxes and government debt could be slashed to almost zero overnight without any technical necessity for inflation or a necessary modification of the international exchange rage.
Of course it wouldn't happen that way, because if the US citizenry were to demand the Constitution be enforced and the private Money power curtailed, then the US dollar would come under immediate attack from foreign bankster powers who would dump their reserves to trigger extreme inflation and strong-arm their enforcers (controlled governments) to hit US exports with tariffs. Living standards would fall precipitously and if the US people could not rapidly adapt to be self-sufficient then violence would follow.
We see something similar going on in Greece. Challenge the Private Money Power and face the economic hitmen. Failing that, face the coup.
Mediocritas - thanks for taking the time to put this together.
You got the thoughts in my head down in words and some i hadnt thought of, thankyou. Will go old school and print that out tomorrow, half tempted to send it to my countries treasurer. Hang on, he is a banker to.
Their is no need to lend out deposits, as most banks require 10% down, and are allowed to legally create the rest out of thin air based on that deposit. Now saying that they do take those deposits and "invest" them in "safe" blue chip companies like Enron or Worldcom
Kinda fast, but let me say we should consider Public Banking and if Credit and Money are Utilities(opposite of Privatization).
Repost:
Banking seems to be missing some answers and the EU also seems to be missing a key about Urban Renewal, Reindustialization, or Grand New Programs.
How does the Troika plan to move from Debt, Collapse, or War into a new Marshall Plan or regional Recovery?
What the EU has no Memory of History?
- Depressions happen
- War Happens
- Countries Collapse
- Dark Ages Happen
- New Diseases can whip out everything
Creative Destruction needs Financing Eventually
- Old Cities Like Rome need Renewal, New Ages in Technology need Financing, Cities Grow too Large and New whole new Transportation Systems
So European Commission, ECB, IMF... how is Debt removed and how do we Rebuild Cities?
Greece is typical even of the USA where we have the same 8% of our working population employed by our Governments. US and Greece share the same huge Debt & Liabilities.
- Deindustrialization, Brain Drain from Industries
- Capital Flight overseas
- Off Shore Production, Outsourcing Overseas, Reflagging of Corporations to off shore Jurisdictions
- Chaotic Regulations which grow Each Year, Laws on top of Laws on top of Laws
The fact is that Banks just pick the Weakest Link, the Political Underdog, or the Socialist/Communist as the Loser... but there is no plan on how to finance rebuilding Industry, Cities, Countries, Highway or transportation systems.
THE USA, THE TROIKA, the Private Banks all have no Idea how to build a future, begin a new Era... There is NO PLAN.
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- Debt for loss of the Opportunity to fund Urban or Industrial Renewal in a Collapse!!
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The DEFAULT is to pick on Liabilities, low Financial Ratings, and ruin one Entity after another... Capitalism's Destruction coupled in intercourse with Cronyism and Corporate Socialism/Corporate Subsidies.
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-- Wait... What about the Middle Class??
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The Middle Class must be a fluke that they never planned for... You needed Industrialization with limited Labor Force OR Free Land to Join the Wealthy or the Middle Class!!
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-- With no more free Land, Open Borders, Open Migration, and Free Trade with the British Economic Model, Monopoly Powers by the Transnational Corporations, there is no chance for a new Middle Class... Today they don't even have Credit Cards or Business Trade since the Credit has Collapsed
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There is no Plan for the Middle Class in Europe or the USA.
- Cronyism, Power, Control, Geopolitics, War, Propaganda, Illusions, Butter & Circuses... the offer of Debt for Prosperity
- Debt for Prosperity
- Debt for loss of Sovereignty
- Debt for loss of running your own business
- Debt for loss of Freedom of Speech so you can keep your Job
- Debt for loss of Political Freedom to be left or right
- Debt for loss of the Opportunity to fund Urban or Industrial Renewal in a Collapse!!
Never a lender or borrower be.
WRONG! WRONG! WRONG!
LOOK HERE - STRAIGHT FROM THE HORSES MOUTH ->>>>
http://www.bankofengland.co.uk/research/Documents/workingpapers/2015/wp5...
Wow no mention of fractional reserve lending,..what a crock
Really? Not a single mention of fractional reserves, "printing" money out of thin air to loan, reduction of the value of everyone elses money and, last but not least, the FACT that virtually every modern bank is actully bankrupt and could collapse any day, taking much, if not all of your money with it under the new international banking collapse template!! Instead of what appears to be a propaganda piece from the banks themselves, I suggest the following for the actual facts of banking, which takes a good bit longer than 6 minutes to properly explain...
https://www.youtube.com/watch?v=iYZM58dulPE
not sure it even touched on the money vs. currency topic.... oh well, no one cares, just keep printing