Crash Course: Chapter 8 – The Fed & Money Creation by Chris Martenson

Chapter 8 (The Fed Money Creation): Chapter 7 explained money creation via money loaned into existence by banks, on the local level. Chapter 8 explains money creation by the Federal Reserve, where we learn that it is manufactured out of thin air. Perpetual expansion is a requirement of modern banking. The banking system MUST continually expand, because that is how it was designed. By understanding the requirement for continual expansion we will be in a better position to make informed decisions about what is likely to transpire and take meaningful actions to enhance our prospects.

http://www.chrismartenson.com

Duration : 0:7:23


Technorati Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Friday, August 6th, 2010 Money

16 Comments to Crash Course: Chapter 8 – The Fed & Money Creation by Chris Martenson

  1. bankofenglandact ( …
    bankofenglandact (dot) co (dot) uk

  2. psb87 on August 6th, 2010
  3. Ok, but what does …
    Ok, but what does the fed do with the bonds? You said that the Fed exchanges newly created cash for the bond–which it exchages with the banks. What does the Fed do with the bonds? Do it destroy them? Or do the banks have to pay for the bonds later? And if they do and don’t pay, what happens to the Fed and the bonds? Does the fed have to destroy its own real reserves to make up for the excess in the sytem?
    gogolando 25 seconds ago

  4. gogolando on August 6th, 2010
  5. Ok, but what does …
    Ok, but what does the fed do with the bonds? You said that the Fed exchanges newly created cash for the bond–which it exchages with the banks. What does the Fed do with the bonds? Do it destroy them? Or do the banks have to pay for the bonds later? And if they do and don’t pay, what happens to the Fed and the bonds? Does the fed have to destroy its own real reserves to make up for the excess in the sytem?

  6. gogolando on August 6th, 2010
  7. @TheSpanishJob …
    @TheSpanishJob Capitalism will always create highly corrupt and powerful companies. The need for ever increasing profit and control is what drives them, and whatever form of monetary based economy you have, from communism to capitalism, you will ALWAYS get the corruption and human suffering that comes from this. I advocate getting rid of this inherently immoral system and bringing about a Resource Based Economy where there are no losers, only winners. And we can do that now, today.

  8. skept1c615 on August 6th, 2010
  9. @fiaskolo because …
    @fiaskolo because they are corrupted and/or manipulated.

  10. skept1c615 on August 6th, 2010
  11. Capitalism is …
    Capitalism is defined as a non intervention system, being the individuals the owners of they own rights. Our system is highly manipulated… so why are you blaming Capitalism? We don’t live, and havent met Capitalism!! Because of this intervention, bubbles appear and the poor cannot start their business cause these are overtaxed or illegal or because goverment inflation. The gov is the one who has created the fiat money, and the one that keeps you being poor! Search in youtube Ron Paul.Save USA

  12. TheSpanishJob on August 6th, 2010
  13. ‘When the Federal …
    ‘When the Federal Reserve writes a check, it is creating money. “

  14. jphwacheski on August 6th, 2010
  15. @LazyOtaku
    The …

    @LazyOtaku
    The reason why hyperinflation is in our future.
    Better start stocking canned goods, guns, and precious metals(lead).
    Won’t hurt to have some form of livestock as well….

  16. ziggy2sound4u on August 6th, 2010
  17. Asses(ts) to the …
    Asses(ts) to the left of us, big banks to the right, here I am in the middle with you.

  18. LazyOtaku on August 6th, 2010
  19. you sound sexy
    you sound sexy

  20. meaghanmac1991 on August 6th, 2010
  21. bastards! crooks! …
    bastards! crooks! federal reserve notes are MEANT to be worhtless over a period of time. the criminal financial syndicate called Fed invented this aberrant system of currency and guess what – U.S. government never said a thing – like a good puppet regime it is.
    GOLD and SILVER are the only source of real money that is immune to the fiat disease. so beat them at their own game, buy and hold as much as gold as you can. i suggest you to check out MAX KEISER report here on youtube!

  22. pingadomulatinha on August 6th, 2010
  23. The treasury …
    The treasury issuing the money would lead to massive inflation to finance welfare and warfare. There is no real difference. The government owns the right to create currency, and guess what, they gave it to the fed. The Feds interest is payed back to the treasury as well.
    Your solution then, is not really a solution at all.

  24. 10speech110 on August 6th, 2010
  25. @fiaskolo thank god …
    @fiaskolo thank god you have a brain don’t you wish others would think like you i wish people understood things better

  26. bxccapricorn on August 6th, 2010
  27. @3daughterskillme …
    @3daughterskillme true that. greets from romania

  28. fritzroy15 on August 6th, 2010
  29. @fiaskolo

    The …
    @fiaskolo

    The goal was to make the Fed independent of the Treasury, i.e. independent of political influence. The hope was that their independence could be based on counter-cyclical economics, not popular politics.

    I am not defending the fed, just spreading info. I actually prefer commodity based currency and interest rates set by the market (Hayek).

  30. FrickinLaserBeam on August 6th, 2010
  31. The reserve act …
    The reserve act determines that the reserve determines the ammount of money in supply through advisory capacity to audit office and other government bodies.

  32. CyberAthletethefirst on August 6th, 2010