Crash Course: Chapter 7 – Money Creation by Chris Martenson
Crash Course Chapter 7 (Money Creation): Understanding how money is created provides a foundation for appreciating the implications of our massive levels of debt, because it tells us how that debt came into being. As John Kenneth Galbraith once said, “The process by which money is created is so simple, the mind is repelled.” Dr. Martenson walks us through this simple process of fractional reserve banking.
http://www.chrismartenson.com
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Also, banks can …
Also, banks can just write in their books the principle of a loan, just because you signed a loan. With a 10% reserve requirement, a bank can write in its books an additional $9000 on that $1000 dollar deposit.
@ …
@FriendsBuyHousesCom
yeah i suspected that and i looked for a comment with the same view.
thump up for the correction.
@milanstoyanov …. …
@milanstoyanov ….. you can’t have a resource based economy. Value is SUBJECTIVE, not OBJECTIVE. Needs are SUBJECTIVE, therefore you need a CONSENSUS to fulfill SUBJECTIVE needs. Markets and money offer this consensus. The Venus project people really me off when they don’t understand the basics, just because they saw STATE fractional banking doesn’t mean it’s a destructive thing, it just means adding STATE to FRACTIONAL BANKING = Destructive. Don’t generalize please.
@milanstoyanov no …
@milanstoyanov no we don’t Mao and lenin tried calculation based economics and dozens of millions of people died.
@milanstoyanov I …
@milanstoyanov I Agree 100%
@formerutuber …
@formerutuber resource based economy dont mean the resources are infinite,it mean the smart use of the worlds resources.
@milanstoyanov …
@milanstoyanov problem is resources are finite, so resource based-economy will collapse too.
@ …
@FriendsBuyHousesCom No I do not believe that Birth certificates are Bonds nor would a prison be traded as a Bond. Do you have any evidence that links An Australian Birth certificate to a stock market. My Birth certificate has no market link. I believe that is religous nonsense but your welcome to prove me worng.
@ …
@FriendsBuyHousesCom Thankyou for your reply, i do udnerstand sovereign Bonds and international debt but why do countries borrow money from other countries if they have different currencies. This would mean they need to ask permission from foreign entities to print their own currency denomination.
@MrMick73 all the …
@MrMick73 all the monetary transactions between countries are done with bonds. Virtually everything is bonded and traded on international markets. Your birth certificate for example is a bond, that is traded internationally. Every person in prison has a “bond’ attached to them, which is traded and monetized, it goes on and on.
One slight …
One slight correction, the original $1000 remains in the bank as the ENTIRE reserve amount, the bank loans out about $9000 that never existed in the first place, thus money CREATION. It is illegal for the bank to lend any of their depositors so-called physical assets. Since the 1930′s our system when from physical currency, to a system of bank credit and debit. By executive order, debt can no longer be paid, only discharged.
does anyone know …
does anyone know how countrires lend money if they haev different currency ???
@Vorlos look for …
@Vorlos look for thezeitgeistmovement and thevenusproject in the net
@milanstoyanov
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@milanstoyanov
…and it will look HOW exactly, when put into practice???
But if I innovate …
But if I innovate and create wealth with the money I borrowed won’t I have the money to pay back principal and interest?
Isn’t that the reason why we couldn’t have a gold standard because money represents wealth and if wealth increases over the long run the money backed by a gold standard would be subjected to constant deflationary pressure.
the money creation …
the money creation part is nothing but marx
simply marx, that’s all the truth
Owners v. Workers
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Owners v. Workers
P+I > P = slavery
Time for interest free sovereign money — this is Freedom’s Vision.
Join the swarm today. The American Party PAC. w w w SwarmUSA com
After a “borrower” …
After a “borrower” signs a promissory note(PN) the “lender” bank sells the PN. The PN is a trust deposit and must be returned unaltered to the “borrower” when the loan is paid in full. As a borrower would you not want your IOU returned to you? That never happens because the “borrower” never expresses the trust. Plus, the bank was already repaid when it sold the PN. It has no lawful or legal valid claim against the “borrower.”
Excellent!
Brevity …
Excellent!
Brevity is the soul of wit.
@jtully79 This is a …
@jtully79 This is a concentrated form of the presentation, the actual presentation is over like 35 hours long, they may mention something about your question in the longer version
Why is there no …
Why is there no mention of Capital Adequacy Ratios, Risk-Weighted Assets or Loans backed by collateral such as a residential morgage?
Correction – with …
Correction – with the advent of agrarian civilizations, the settlement of populations spawned the creation of currency & this system. But agricultural product & livestock was the valued substance represented by the currency. The proprietorship of land & its product & resources of which all men rightfully have equal claim to
Otherwise, you have Loserferians who’s attitude is that they are proprietors of the earth & all of it’s inhabitants. Sounds like Marxism? Because Marxism is Loserferianism
Ultimately this …
Ultimately this system requires continual growth. For the more it grows, more is there required to feed the monster… “exponentially”. But continual growth can be sustained continually, only if resources were infinite. However, they’re not. Thus, within our finite, entropic universe, there must come a day when the bottom will drop out
That day is upon us! The price for not living harmoniously with the natural order of God’s creation. Ultimately, it all comes down to natural resources
For when this …
For when this current system was first concocted, it was within agrarian civilizations & agricultural product was bartered. But all men were created equal. Thus no man has the right to charge another man exorbitant interest for his portion of the resources. Usury!
There is a problem …
There is a problem even before interest. If anyone one of the people tries to take their money out its a bank run and the bank is bankrupt.
In fact if the person that borrows the money buys something and that person tries to cash the check it would be a run on the bank. The check would bounce.
The bank and the borrower have committed fraud against the person being paid with that check.