A short and probably inadequate discussion of the economic role and origin of money.
People will try and tell you all sorts of funny things about money, what it is, where it comes from. A sure sign people are talking out of their arse is if they say something like ‘modern money is just debt’. Debt is owing money. Money can’t be owing itself. Come on…
But even respected economists like to oversimplify things, and I’ve horribly oversimplified a lot here, but in a non ideological way, so hopefully you’ll learn something and be able to deal with strange economic ideas when and if they arise in discussion.
Duration : 0:6:9
October 28th, 2009 at 4:09 pm
what do you make of …
what do you make of zeitgeist addendum ?
October 28th, 2009 at 4:09 pm
Probably. But …
Probably. But forecasting is for saps and attention seekers.
October 28th, 2009 at 4:09 pm
Well, the thing …
Well, the thing about economics is that is is no sure science, otherwise, Economists might have been doing a better job rather than making a mess of things. The london school of economics has a poor record. I think weather forecasting may be more reliable than economic forecasting. Only my opinion.
October 28th, 2009 at 4:09 pm
Life doesn’t teach …
Life doesn’t teach macroeconomics.
October 28th, 2009 at 4:09 pm
“Too bad your …
“Too bad your limited by your 3 degrees”
Keep in mind you may hold 3 degrees( i only hold one measily one in commerce) but all well roundedness has 360 degrees. School teaches theories, Life teaches practicality.Its time you open up your blinders and stop being so tunnel vision.There is color in the world, not everthing is so black and white. Those who view life in such a narrow bandwidth are missing out. I wish you would not such a pompous and get off your highhorse. R u sure your not my prof?
October 28th, 2009 at 4:09 pm
For fecks sake, I …
For fecks sake, I am a university reader in economics, I hold three degrees in the subject. It is what I do for a living. The so called ‘great questions’ that you speak of pale into insignificance compared with the real unanswered questions in economics, and I’m afraid I have to spend time on those. Sorry, but this sort of feeble minded conjecture doesn’t interest me.
October 28th, 2009 at 4:09 pm
By the way, I hope …
By the way, I hope you don’t suspect I am one of those typical conspiracy nuts that are out there. Most of those theories are so far fetched! Please do yourself a favour and view “money as debt part 1 of 5 etc… and view with an open, rational, and intelligent mind. This is an exponential versus the typical linear explanation on not only money but other economic issues which are addressed in that videso series.I look forward to your feedback on this. sorry i sounded rude, I just get frustrated!
October 28th, 2009 at 4:09 pm
Hey man you sound …
Hey man you sound intelligent enough and open minded enough to find more answers to your great questions about the money/credit system. I suggest you and your viewers check out the video series on youtube called money as debt. It comes in 5 parts. This is very well done explained in laymans terms presentation on the history of money and banking. You won’t regret viewing it. Its is so profound and 100% verifiably true!! I am what you call a truth seeker and I suspect you may be too. Enjoy!
October 28th, 2009 at 4:09 pm
But what rules do …
But what rules do they make? they don’t set interest rates, which are determined by the demand and supply of credit. They get a return on the assets they hold, but why shouldn’t they?
October 28th, 2009 at 4:09 pm
You are correct …
You are correct that the financial savvy and literate that are not too greedy and are concervative will tend to do well when they own true assets like gold, land on a good location etc…. The problem is most of the world isn’t that savvy. I am glad that I am savvy and am independently wealthy but I am no elitist. Most people get their education from magazines, television, and mainstream educational institutions which dont teach about financial literacy but how to be a consumer.
October 28th, 2009 at 4:09 pm
I have spent the …
I have spent the last 20 years of my life investigating central banks like the BIS, IMF, bank of England, and Federal reserve, which except for the bank of England(50% government and 50% private owned) are 100% owned by member banks which are private corporations which are owned by surprise Rich people. He who owns the gold unmistakenly makes the rules. Its the way it has been for eons. You just got to do more homework instead of believing mainstream crap(which is supported by elites).
October 28th, 2009 at 4:09 pm
Elite classes? …
Elite classes? Evidence please that the rich ‘control the supply of credit’, that ain’t how it works. Inflation gets everyone, the only difference is that the rich tend to hold more of their wealth in assets and thus don’t suffer as badly proportionately.
October 28th, 2009 at 4:09 pm
But that was …
But that was exactly my point! Increasing the money supply does nothing in theory except erode savings.
October 28th, 2009 at 4:09 pm
As for my other …
As for my other half truth comment, I didn’t mean it that way. What I meant was now you know the rest of the truth making up the whole truth. If you want to appear to be educated on here please make sure you inform all your viewers of the whole truth and nothing but the truth. I hate your half truth comment cause it leaves out a very important issue, inflation erodes the dollars of those who save money, but doesnt do anything to the elite class who control and issue most of the $’s or credit.
October 28th, 2009 at 4:09 pm
In answer to your …
In answer to your response at around 2 min mark, by the fed doubling the money supply, all else being equal, it won’t mean sweet all to the poor retired people who have worked all their lives to save their money to live off in their retirement. The effect of doubling the money supply is that now it takes twice as much$’s to buy something cause like you said prices rise. So you leaving out the other half truth that the middle class and poor will suffer big time. Time to educate yourself!!
October 28th, 2009 at 4:09 pm
Sorry I didn’t mean …
Sorry I didn’t mean to sound rude, you just reminded me(assuming your the voice behind this video) of my snobbish know it all (so he thought)economics professor. What I was getting at about interest and the poor getting…. is the current set up of our monetary sytem/central banking through the practice of Fractional Reserve banking. Are you familiar with Fractional Reserve Banking and its effects on inflation in the economy. Funny thing is this was never taught at my University.
October 28th, 2009 at 4:09 pm
Nor am I saying …
Nor am I saying sustained government deficits are a good idea.
However, whats your linkage with poor getting poorer and paying the interest on debt?
The bullshit about ‘newly created credit money’ I’ll just ignore for now, just watch the video.
October 28th, 2009 at 4:09 pm
Correction: I meant …
Correction: I meant lenders, not borrowers.
October 28th, 2009 at 4:09 pm
Hey I got a …
Hey I got a question for you Mr. British Educated Person.Did you ever wonder how all this money(national debt) is suppose to ever be paid back to the borrowers when the majority of this newly created credit(money or better yet debt) is not correspondingly created with the interest to pay it off?How can you pay back all this debt that is compounded with interest when the interest portion of the money supply is not created at the same time.I believe you can’t. So the rich get richer & poor poorer.
October 28th, 2009 at 4:09 pm
It’s very …
It’s very interesting, and I wish there were more than just the handful of people on YT posting about it.
October 28th, 2009 at 4:09 pm
It’s not!!!! Jebus …
It’s not!!!! Jebus christ almighty… Money is a commodity. Gold is not debt is it?
October 28th, 2009 at 4:09 pm
Well, technically …
Well, technically money IS “debt”; however, the way it’s interpreted in some videos floating around the internet, is confusing
October 28th, 2009 at 4:09 pm
It was also …
It was also fascinating for me, as I’ve heard the “money is just debt” discussion too many times, and I’m glad to hear an economist straighten that one out.
October 28th, 2009 at 4:09 pm
That was …
That was fascinating! I look forward to the next one.
October 28th, 2009 at 4:09 pm
Indeed, thanks for …
Indeed, thanks for the explanations, it makes perfect sense now.