The principal problem is that the economy needs to grow so that all this debt can be repaid. But, even if Peak Oil were centuries away, perpetual economic growth in a finite world is impossible. However, we are at Peak Oil now; therefore, the economy cannot grow. Hence the catastrophes we expect are upon us. Isn't this the best and simplest explanation for all of the current crises?
@SilentNoMorePubs14 жыл бұрын
The KZbin video WHY WE ARE IN SO MUCH DEBT provides the much-needed, simple and clear explanation of why our money is destroying our prosperity. It starts slow to build its foundation, but stick with it as the revelations keep coming. Highly recommended.
@ementormike7 жыл бұрын
SilentNoMorePubs Kind of you to make this helpful suggestion. Thank-you. :)
@JohnHumphreys12 жыл бұрын
@MillionthUsername In the current system, base money is created by the government. Nobody else can create base money. But anybody can create credit (measured in dollars). If the credit is accepted by many people as fungible to base money, then it increases what is known as "broad money". That is an outcome of voluntary choice by free people. Counterfeiting is copying base money, which is different. This is all explained in the article. Don't be afraid to learn.
@tothemax0113 жыл бұрын
@Holisticism1 I'm not sure what you mean by 'principle money'. When a bank run occurs, the actual money (monetary base) held in the bank of course does not get destroyed. However, all of the false credit extended against this money does. The effect of interest is in the opposite direction - more credit must be extended so people can pay the required interest.
@JohnHumphreys12 жыл бұрын
@ElsewhereIsHere I'm not forgetting anything -- when you *voluntarily* agree to deal with a bank, then you *voluntarily* agree that they can lend out your deposits. If you don't want to keep your money in a bank, then you can put your money elsewhere. Safety deposit boxes and vaults are legal. Use them. But please don't force your choices on to me. I like the *voluntary* agreement I currently have with my FR-bank.
@JohnHumphreys12 жыл бұрын
@Watermark0n I assume you're taking the piss, but just in case anybody else takes this seriously... the reason why a voluntary society works best is that it rewards productivity, while a plunder society rewards ability to plunder. As you say, incentives matter. And "property" is neither capitalist or socialist -- it just exists. The difference is that capitalists believe property should be transferred without violence or coercion.
@khanacademy15 жыл бұрын
No. Wish I did. My guess is that most of it ended up making the AIG credit default swaps good and keeping Citibank propped up (via debt that they keep turning into equity at inflated prices).
@jasmeetdoesgaming79624 жыл бұрын
Khan Academy hi
@tothemax0113 жыл бұрын
@Holisticism1 By defaults, bankruptcy and bank runs & failures. Indeed, just before 1933 (when the US gold standard ceased), 9200 banks failed over the course of four years. In the absence of this (i.e nowadays), yes, the money supply increases roughly exponentially. If you view an money supply chart, since 1971 (when gold exchange ceased), the money supply has done just this.
@TreachMarkets14 жыл бұрын
Great video. Nice description of a certain economics concept, the technical term is RDB: Rewarding Douchebag Behavior. RDB is an important concept to understand and leads to programs like TARP.
@JohnHumphreys12 жыл бұрын
@MillionthUsername If you actually cared about this issue and wanted to understand, you would have read the article I suggested. The fact that you ask questions, but then refuse to read the answers, says more about you than any of the mindless insults you throw around.
@tothemax0113 жыл бұрын
@Holisticism1 No I think you misunderstand around the 'paid back' bit. The question is, paid back with what? Suppose the simplified situation: All money is in the bank, and by money we mean paper notes (say a total of $10M). The bank then issues $90M of loans for 1 year at ~11%, and this means the bank issues $90M credit, and requires $90M + interest in 1 year. The bank now has issued a total of $100M credit (original deposits + loaned credit). In one year, $100M is due back from the loan.
@Criptodengiru8 жыл бұрын
Hey, does anybody know the software name which is used for that video?
@vinniepaz73015 жыл бұрын
thanks for bringing more banking videos Sal!
@delyparker77712 жыл бұрын
Excellent video-another video to watch is Money as Debt I and II which is about 45 mins and The American Dream Cartoon which is 30 mins. Both videos help you understand the money and the banking system. "Billions For the Bankers, Debts For the People" by Sheldon Emry is also an excellent cartoon. You can find it online and read it for free. Both videos are also right here on youtube. EMPOWER YOURSELF!!
@ementormike7 жыл бұрын
delyparker777 Kind of you to make these helpful suggestions. Thank-you. :)
@JohnHumphreys12 жыл бұрын
@MillionthUsername As I already explained once, FR-banks don't create "money", they create "credit". And banks don't do "nothing" -- they match loans of different maturity, which is a huge benefit to their customers. And bank liabilities are not backed by "nothing" but by other financial assets. In a free world, I will defend your right to not deal with an FR-bank. You should also respect my right to deal with an FR-bank. Google "non-aggression axiom".
@tothemax0113 жыл бұрын
@Holisticism1 (Continued). Now the reason the bank can do this is that the credit is just numbers on its sheets, that its customers view as "amount of money I have" rather than "credit to money that doesn't exist". Now when the $100M must be repaid, this is done by cancelling out credit at the bank. But since there is not enough credit to do that (only %90M credit created), the extra amount must be paid (cancelled) with a new loan of $10M, and so on. Hence credit expands until a run occurs.
@tothemax0113 жыл бұрын
@Holisticism1 Well not really; suppose at the start of year, the banks have issued total credit of $100M, at an average interest rate of 10%. This means that in 1 year, $110M is due in total. Suppose then that interest rates (hypothetically) are lowered to 0%. The following year, $110M is still due.
@JohnHumphreys12 жыл бұрын
Mistake in the first 30 seconds. When you give your money to a bank, it is not just for "safe-keeping". You have voluntarily exchanged your money for a financial asset called "credit". If you just want safe-keeping, then use a safety deposit box or a vault. Second mistake just after 1 minute. There is no discrepancy between what the bank tells you and what they do. They tell you that they will lend out the money, and they do lend out the money. Read the bank contract you voluntarily signed.
@JohnHumphreys12 жыл бұрын
@MillionthUsername FRB does not involve having something and being owed the same thing. If you have $10 credit at the bank and then withdraw $10 in cash, you no longer have the $10 credit. Banks don't claim to have the cash. They claim to own financial assets. And they do own financial assets. No contradiction & no conspiracy. You can create credit any time you like by borrowing money. You can trade credit whenever you like by finding somebody to trade with, voluntarily.
@JohnHumphreys12 жыл бұрын
@MillionthUsername If you want to send $10, then that is fine with me. I can see that this is confusing you, and that understandable because these issues can get complex. The article you refuse to read explains all of these issues in simple terms. Some non-economist friends have said that they struggled to understand banking, but the article really helped. Try it. You should never be afraid to keep learning.
@maersklandro12 жыл бұрын
The weak points of fractional reserve banking? That's like talking down the weak points of larceny, fraud and counterfeiting. Except for the slight pitfall of being serious crimes they're actually quite wholesome activities for the family, overall.
@McRocket12 жыл бұрын
What a great video...it explained it SO well. Thank you very much.
@PhilW6612 жыл бұрын
Funny how people state that banks are straightforward regarding lending practices with deposits. I consider myself fairly intelligent, well read, and I have seen "Its a Wonderful Life" hundreds of times. But, I didnt know that the amount of reserves kept on hand was 10% of what was deposited. My simple 100 dollar deposit yields about $1000 of interest bearing assets to the bank. Banks cry when they become insolvent but are strangely silent when profiting from our ignorance.
@rtcell12 жыл бұрын
@johnhumphreys99 yes, they create credit, but not for me. From my relationship with bank, it's a classic demand deposit. I did read my BoA contract (thanks for the nudging btw). there is a bunch of unpleasant surprises there, but they do promise to pay all my funds, on demand. they only reserve the right to decline "an unreasonably large" amount payout *at a banking center*, but they promise to arrange any size payout on demand from "one of our cash vaults".
@JohnHumphreys12 жыл бұрын
@MillionthUsername You can create credit in anything at any time without any special privilege. If you lend me a pen and I give you an "IOU pen" then we have created pen credit. No special privilege. If you lend me $100 and I give you an "IOU $100" then we have created financial credit. No special privilege. You can try and trade using the "IOU $100". Others are free to accept or not, voluntarily. Many people accept bank credit, voluntarily. Free choice.
@ThePeterDislikeShow13 жыл бұрын
8:45 isn't that just like a CD? Is this what happens when you put money into a CD account at the bank?
@dskillz112 жыл бұрын
Excellent video - more should see it.
@charronfamilyconnect11 жыл бұрын
Sal, you are scaring me now. Sounds like I should pull all my money out of the bank now to be safe and stuff it under the mattress or should I just buy gold and maybe silver to be extra safe in case my paper money gets devalued to zero?
@JohnHumphreys12 жыл бұрын
@MillionthUsername As I said, it is not possible for me to tutor you in monetary economics within YT comments. But if you ever want to learn about monetary economics, free banking, and libertarian philosophy -- I will try to help. All of your questions have already been answered in the article I mentioned. If you have any follow-up questions, I'll try to help further. If you don't want to learn now, that's fine. If you do want to learn, then good luck.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "FR-banking is nothing more than the creation and trading of credit" Credit for what? Apples? Rides on horsies? Babysitting time? Answer the question.
@tothemax0113 жыл бұрын
@Holisticism1 Of course
@JohnHumphreys12 жыл бұрын
@MillionthUsername I'm glad you're asking questions. That issue is explained in the article. You shouldn't be afraid to read it. Trying to tutor you in monetary economics is difficult through YT, so I strongly urge you to read the article, think carefully, and you can ask any further questions in the comments section.
@VickiBee11 жыл бұрын
Excuse me for asking, but where can you find videos on this that are for Remedial students like me. I can't find a place to start. If I start at the beginning it's possible for me to understand a little of what you're saying. But I can't find the first video you made on the topic.
@JohnHumphreys12 жыл бұрын
@MillionthUsername The credit is an IOU for the underlying asset. If person A borrows $100 from person B, then person B has an IOU $100 financial asset. Surely you don't think IOUs should be illegal?! Simple question for you now... should it be legal to create financial assets (ie give loans)? Should it be legal to voluntarily trade in financial assets? Because that is *exactly* FR-banking. I don't blame you for not knowing, but you should get informed before getting angry.
@JohnHumphreys12 жыл бұрын
@rtcell I'm surprised the contract didn't include an "availability clause", which normally states that you only get the money if it's available. But I don't know the details of BoA so I can't be sure. (Side note: breach of contract is not necessarily fraud.) On your other comment, I totally agree that government bail-outs, guarantees and distortions of base money supply are bad policy. This is where Austrian economists and libertarians should be complaining the loudest, not FRB.
@JohnHumphreys12 жыл бұрын
@MillionthUsername Do you think repeating a lie will help it come true? If you weren't scared of learning, you would read the article I mentioned, which answers all your questions. But you don't. Broad money is made up of base money * credit multiplier * velocity. Base money is not the same as credit, but they can be fungible if other people will voluntarily accept them as such. This is all clearly explained in the article that you refuse to read.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "No need for a privilege in law." To create credit in dollars? You mean I can monetize an IOU for $100 by printing out a $100 bill and spending it into the economy just like the banks can? "They are different things." Cash and credit are different things, but the banking privilege is what makes credit spendable money, i.e, the same as cash. I cannot spend your IOU for $10 at the store. I can't print out a $10 USD (or issue a credit/debit card). Banks can.
@neway2004513 жыл бұрын
Great job!!! I'll spread the word... one note: you need to make the writting (and drawing) better :o) thanks! Jim
@tothemax0113 жыл бұрын
@Holisticism1 Well again, the fact of the matter is that mathematically, the banks must steadily increase credit to allow interest to be paid off with new debt. The debt required to pay off interest has itself an interest rate also, hence it is a slowly compounding situation. Thus there is little surprise that one never hears about a 'good bank', and that they are all 'bad banks' needing 'bailouts', 'regulation' etc. In reality, some bankers just need throwing in jail for practicing this fraud.
@Pr0x1mo15 жыл бұрын
Sal, what do you think about Ron Paul?
@JohnHumphreys12 жыл бұрын
@MillionthUsername Anything can be money -- including cigarettes, shells, rum, gold, and bank credit. You don't get to decide what other people voluntarily use. You seem to be confusing the concepts of "broad money" and "base money", which is an understandable mistake for somebody new to economics. I suggest you calm down, read the article I have suggested, and if you have further questions you can comment on that article and I'll try to help. Good luck.
@rtcell12 жыл бұрын
@johnhumphreys99 you claim are verifiable false. When I deposit into a checking account, there is no credit involved - I am promised the "safe keeping" for my money. And no, they do not tell you they can lend out your money, and they certainly do not tell you they can lend out more than you put it. Hiding it in the fine print is a cheap trick - go check with bank customers , and how many of them agreed (or even aware) of Their money being lent out
@JohnHumphreys12 жыл бұрын
@MillionthUsername You're clearly upset, but when you calm down I strongly urge you to read the articles I have suggested for you. They will clear up how banking works. You seem to think that banks can print cash. That just isn't true. I encourage you to ask somebody in a bank whether they can print cash. They cannot. What they can do is create credit, which can be fungible for cash in certain situations. Good luck in your learning.
@tothemax0114 жыл бұрын
@randyguitarman13 Damn straight. Glad more people are starting to know this.
@GenghisVern9 жыл бұрын
Banks don't lend reserves. Keynes said that flushing the system with excess reserves is like trying to push the economy with a string. Sad, but folks think the Fed can stimulate the economy, in spite of Fed chairs saying there is really little they can do other than keep the overnight rate low.
@JohnHumphreys12 жыл бұрын
@rtcell Rothbard is a great thinker and a great writer, but he's wrong on this issue. Read Seglin & White, or just think it through yourself. I strongly urge you to read the *voluntary* contract you signed with your bank. You'll see that they have *not* offered you safe-keeping and guaranteed repayment on demand. They have kept to their word. Voluntary contracts should be allowed. And once again -- they don't "conjure money". They create credit. The difference is important.
@puddingpimp14 жыл бұрын
What is this instead of charging you a fee to store your money, my bank charges me money to keep my money and withdraw it, and makes money loaning it out. I don't get paid anything for the money they loan.
@Hackiesacker00712 жыл бұрын
END THE FED! Ron Paul 2012!
@cepson13 жыл бұрын
Even if banks don't explicitly tell people that they can't cover all of their demand deposits, wouldn't competition drive up the interest rates banks pay on these accounts anyway? Or is there collusion among the banks? I suspect that the miserable rates that most banks pay on checking accounts is close to the limit of what they can afford, but I'm willing to believe they are colluding with each other or, better yet, the government's setting the rate.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "FRB does not involve having something and being owed the same thing" The whole point of the current FRB system is to do just that. If Jack deposits $100 in Bank A, BOTH Jack AND Bank A are able to USE this money IMMEDIATELY. Both have $100. Now if both have $100, that's $200 which arose from Jack's $100. How did this happen? The bank created money by claiming it could - at the same time - loan Jack's $100 to Pete as well as give Jack back his $100 at any time. They cloned it.
@JohnHumphreys12 жыл бұрын
@MillionthUsername Again, you're confusing a few issues. If you would just read the article, you would stop making these mistakes. In your country (and mine) the dominant currencies is indeed a fiat currency. While not quite forced in my country, the government does warp the system in a number of ways which prevents currency competition. Like most libertarians, I would prefer no government currency, and free banking. But that's a different issue to FRB. Please read & learn.
@oiuoiu98815 жыл бұрын
the problem becomes that the person is usually only trying to save this money. if all banks were based on investment with minimal returns there would be demand for depository institutions. right now that demand exists but starting up a depository institution would be a cross between illegal and idiotic in america today...
@deadman1207814 жыл бұрын
Had it happen to me... Went to clean out my savings account but the bank did not have enough cash on hand. What bank doesn't have $18,000? It wasn't like I was trying to withdrawl $500,000. They offered me $4,000 and cashier checks that I would have to try to cash at other bank branches... had to go to two other branches to get my money. It's just wrong.
@JohnHumphreys12 жыл бұрын
@MillionthUsername Touche. I should have written that nobody else can copy somebody else's base money. Of course you are free to create alternative currencies. I suggest bitcoin. But you now seem to be confusing the ideas of "central banking" with "FRB". The former is obviously socialist, while the later is obviously voluntary & capitalist. This is all explained in the article. Don't be afraid to learn.
@JohnHumphreys12 жыл бұрын
@MillionthUsername I just explained to you that there is no special privilege in creating credit. Anybody can create credit. Even you. There is no special privilege required. None. Nada. And there is no special privilege in trading credit. You can trade it if people accept your credit. You can't trade it if people don't accept your credit. It all comes down to a voluntary choice (which you seem to hate). Do you understand yet? Do you want me to use smaller words?
@EvilEddtheRed12 жыл бұрын
There's a problem right from the start - if 'giving you back what is yours' is described as a 'liability' there's a fundamental flaw in the concept. Ditto when an unpaid loan can be listed as an asset.
@JohnHumphreys12 жыл бұрын
@MillionthUsername I agree that you have repeated yourself a dozen times. But that does not make you correct. Banks cannot print cash. They create credit, which can be fungible for cash. Being fungible for cash does not make credit the same as cash. Whether something is fungible for cash is entirely up to the voluntary choices of free people. This is all explained in more detail at the links, and I strongly encourage you to read and learn. Good luck.
@JohnHumphreys12 жыл бұрын
@MillionthUsername Banks do not magically turn "I owe you $1" into an actual dollar. You are just wrong about that, but I can understand your confusion. If you actually want to understand (instead of just shouting insults) then I urge you to start at the beginning and learn how the banking and monetary systems work. My article "the unforigvable stupidity of anti-banking libertarians" provides an easy introduction for non-economists. Whether you learn or not is up to you.
@EGarrett0112 жыл бұрын
Can we just call it "Fictional Reserve Banking?"
@JohnHumphreys12 жыл бұрын
@MillionthUsername No need for a privilege in law. You only need voluntary contracts (which you seem to hate). The borrowers and depositors can't withdraw more cash than the bank has. Whoever withdraws the money has the money. Whoever has a bank account balance has credit. They are different things. They don't even rhyme or start with the same letter, so I'm not sure why you're so confused. You're quick to insult, but slow to learn.
@khanacademy15 жыл бұрын
You would still have the bank run problem.
@JohnHumphreys12 жыл бұрын
@MillionthUsername Sure, if it makes you feel better you can consider this me "running away". I can see you're angry now... but perhaps in the future you will become curious about the monetary system and try to become educated. When you do want to learn, my offer to help explain monetary economics and free banking still holds. Peace. "To deal with men by force is as impractical as to deal with nature by persuasion" -- Ayn Rand
@MillionthUsername12 жыл бұрын
@johnhumphreys99 In any rational economic system, you can't be owed something and have that very thing at the same time. That's called a contradiction. In our crazy world, reason is overridden by law (decrees backed up by force). This law allows banks to claim to have dollars they lent (make them dollars). The law also keeps you and I from doing what banks do - creating (actually multiplying) money because it would instantaneously DESTROY the currency altogether. Do you understand why?
@JohnHumphreys12 жыл бұрын
@MillionthUsername There is no "new cash" being issued. When I give you the $10 cash, it comes from my cash reserves. Where do you think it comes from? It is hard to explain these issues to you in YT, so once again I strongly urge you to go and read up about banking first. Look for the article I suggested earlier, and that should explain all of the issues you are currently confused about. When you get stuck, ask politely and I'll explain. Good luck.
@JohnHumphreys12 жыл бұрын
@MillionthUsername Calm down. The FRB system is voluntary because all it requires is the existence of voluntary contracts. In an entirely free-market system, I would set up a voluntary FRB and people would be allowed to voluntarily interact with me. The only way to stop me would be with your "goons with guns" to stop trade between consenting adults. Please leave me alone to make my own free choices without your violence. Thanks.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "Should it be legal to voluntarily trade in financial assets?" Surely you don't think it should be illegal to trade financial assets??!!????!??
@jerkasmo12 жыл бұрын
Guess what? Wells Fargo wants to charge me a $15 monthly service fee for my checking account (the fee is no longer waived with a monthly $75 auto transfer from my checking account to my savings account). Guess making money from loans isn't enough for them anymore. Now they want me to have at least 3 accounts with them and park a couple grand with them at all times in order to avoid the monthly service fee.
@JohnHumphreys12 жыл бұрын
@MillionthUsername They are not creating "money", they are creating "credit". You can also create credit by lending $10 to your brother and receiving an IOU. Do you really want to make it illegal to give loans? At a recent Mises Seminar a friend and I engaged in FR-banking by giving each other a $10 IOU... do you want to violently prevent us from engaging in such voluntary actions? Now *that* would be fascist.
@Flows23411 жыл бұрын
Can you tell me your views on the banking system? I assume you believe it's a honest, trustworthy, legitimate system?
@JohnHumphreys12 жыл бұрын
@MillionthUsername You don't need a "privilege in law" to be able to create and trade credit. You can do it. And you certainly are allowed to on-sell your IOU if you like. It is up to the recipient to decide whether they will accept it. Many people accept bank credit. You don't have to if you don't want... but you shouldn't try to control my choices. You seem to be against the concept of trading in financial assets. That's a dangerous type of socialism.
@Torgo196914 жыл бұрын
@deadman12078 Last summer I made my own little bank run over several weeks and turned 90% of my dollars into precious metals, but I only took out 500 at a time. I hope you turned your toilet paper into real assets like PMs or canned goods.
@JohnHumphreys12 жыл бұрын
@MillionthUsername Just not true. FRB is nothing more than the voluntary creation and voluntary trading of credit. Despite what the statists tell you, trade is a *good* thing. If you don't want to put your money in a bank, then don't put your money in a bank. But please don't force your choices on to me.
@KingSolsticeWRX11 жыл бұрын
Sal is awesome
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "Where do you think it comes from?" I dare you to take my challenge and let me establish an account with you. You know damn well that you can't issue me $10 after having given me and IOU and loaning the cash out to someone else! You know that! The only way you can do that is to get the cash from another source. This is no different than Madoff or any Ponzi scheme. Liquidity is not the issue. It's the creation of two equal demands for the same original dollar.
@RiechoMedia13 жыл бұрын
Who speeks?
@MillionthUsername12 жыл бұрын
@johnhumphreys99 The way you use the concept of fungibility here is just another ploy since you know damn well you cannot give MY money away to someone else and then return THAT MONEY to me at the same time. You created a placeholder for that original money, but it isn't a simple IOU. It is "dollars." They are digital dollars, spendable dollars. They are not IOUs for dollars. THAT is how banks can do that, and we can't.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "If the credit is accepted by many people as fungible to base money, then it increases what is known as "broad money". " OMG. You're talking about gov't fiat money. You do realize that, don't you? People are FORCED to use the worthless paper issue of the Fed in at least some circumstances since it is decreed (and backed by force) "legal tender for all debts public and private." It is required for the payment of taxes (also backed up with force). Guns, not economics.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "I just explained to you that there is no special privilege in creating credit." No one said anything about needing a special privilege to issue credit. Does that matter to you, or do you just ignore everything that people say to you and create your own version of an imagined conversation in your head? Do you realize that the world exists outside of you? Do you understand that I am not in your head? Why are you not able to recognize and respond to what I have said?
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "You don't need a "privilege in law" to be able to create and trade credit." No kidding. The privilege in law I mentioned did not refer to credit. "You seem to be against the concept of trading in financial assets." You seem unable to read.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 The FRB system is a fascist system of state granted privilege. The credit you say they "voluntarily" create is only marketable because the state says it is lawful money. Otherwise it would just be worthless paper.
@ElsewhereIsHere12 жыл бұрын
@johnhumphreys99 You forget that banks are doing this with other people's money. If banks and investors want to do this, they should be put in their own little sand box, isolated away from everyone else. There you can consent all you want. Just leave me and my assets out of it. I do not consent.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "If you want to send $10, then that is fine with me." And you are going to follow those instructions and issue me new money?
@JohnHumphreys12 жыл бұрын
@ChristiansMustLearn The banks, like everybody, should have the "power" to engage in voluntary trade with consenting adults. FR-banking is nothing more than the voluntary creation and the voluntary trading in credit. Trade is a good thing, and you should not be trying to ban my voluntary and peaceful actions just because you don't like them.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "This is all clearly explained in the article that you refuse to read." I understand the way the fascist monopoly scam works, so I don't need to you "clearly explain" it. You refuse to define terms such as "money" and "dollar." You refuse to even acknowledge the privilege in law that the banksters enjoy. You just deny any influence of law, which makes you look insane since this is what protects the cartel and allows it to practice what you think is normal business activity!
@Pr0x1mo15 жыл бұрын
I think a funnier question would've been, "what do you think about Glenn Bekkk?"
@MillionthUsername12 жыл бұрын
@johnhumphreys99 How are you going to issue me new money when you have given my money to someone else? With FRB, you will only have $1 in reserve after loaning the $9. How will you give me $10? You can't cheat and get it from somebody else. This is to prove your claim that you can do the same thing banks can do, that is, you can make the IOU for $9 or $10 dollars actual money.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "they don't "conjure money". They create credit. The difference is important." They create credit for DOLLARS. DOLLARS ARE MONEY. They ISSUE DOLLARS (either cash or digitally) for the original deposit as well as the credit they created based on it. This can be done AT THE SAME TIME, which means - to people with functioning brains - that they have increased the money supply since where once there was $1 there now is $2 in circulation. Deny that, creep.
@JohnHumphreys12 жыл бұрын
@rtcell Read your banking contract, then come back and apologise. And if you don't know that banks lend out the money they receive from depositors, then you are in a very small minority. That is common knowledge. Your ignorance of banking does not justify your desire to ban the entirely *voluntary* actions of consenting adults. If you want to keep your money in a safety deposit box, that is your choice. But don't impose your choices on me.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 You are nothing but a troll. You deny that the banking system creates money. You deny that the credit issued is for USD. You also deny that banks are allowed legally - and we are not - to turn their IOUs for USD into USD. If anyone else does that, they will be arrested and tried for counterfeiting. Anyone who knows anything about banking and law knows this. The fact that you sit here and repeatedly deny basic facts shows just how far you will go in your quest to troll.
@JohnHumphreys12 жыл бұрын
@MillionthUsername FR-banking is nothing more than the creation and trading of credit. If you don't know this very simple point about banking, perhaps you aren't the best person to be commenting on the financial system. Ignorance is not a virtue, and being proud of your ignorance is not a good look.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 This isn't about alternative currency either. You are defending FRB and you are using the current banking system to do so! You have never answered my points. All you can do is distort them and pretend I said something else. That reveals your character. I tried to deal with you in the beginning, but you NEVER addressed the issue of banks MONETIZING IOUs, turning "I owe you $1" into an actual DOLLAR. Then you say, "ask me questions" like a psycho.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "But you now seem to be confusing the ideas of "central banking" with "FRB". No, I'm not. You are talking about what banks do now. When you talk about "credit" and "money," you're talking about current system "dollars" and how they are "fungible." You are the one who can't separate the concepts. You are using current fascist examples calling them "voluntary" and equating banks calling IOUs "dollars" with you and I "issuing credit" for pens. It's obscenely stupid.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 The practice of keeping only a fraction of deposits in reserve is irrelevant. It is the privilege in law of monetizing the IOU which creates money. The proof that money is created is simple: Both the depositor and the borrower can withdraw cash from their accounts at the same time. There are two claims for the same "dollar." This then becomes TWO dollars. You should acquaint yourself with these basic facts before you go shooting your mouth off like an ignoramus.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "but then refuse to read the answers" Your "answers" are nothing but sophistry. I quoted you directly where you claimed banks don't create money, but credit. Then I asked you what the credit was. I tried to converse with you to no avail. The credit is dollars. Dollars are money. Money by law, not by acceptance. Today you admitted credit is money. You can't even keep your story straight. You're caught up in the whole delusion of the scam because you have never seen through it.
@dwaindibley41377 жыл бұрын
That's not how fractional reserve banking works.
@Jwill191412 жыл бұрын
as of the time of this post, 2 central bankers have watched this video.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 "I'm glad you're asking questions." Try reading one and answering it without red herrings, lies, distortions, word games, and this idiotic posing.
@JohnHumphreys12 жыл бұрын
@MillionthUsername What you write just isn't true. I strongly urge you to read the *voluntary* contract you signed with your bank. But I should also apologise. Many of my comments were based on an assumption that you understood the basics of economics, but perhaps that was a wrong assumption. I can't explain 200 years of learning in YT, so I won't try. But if you want to learn more, google "The unforgivable stupidity of the anti-banking libertarians John Humphreys".
@JohnHumphreys12 жыл бұрын
@MillionthUsername Really, you would save a lot of time, learn some valuable things about banking, and save yourself the need for constant insults, if you just read the article I suggested. Google "the unforgivable stupidity of anti-banking libertarians John Humphreys". You deny saying banks issue dollars, and then say banks issue dollars. No. They issue credit, measured in dollars. Anybody can do that. Whether the credit is accepted by shops is up to each shop.
@MillionthUsername12 жыл бұрын
@johnhumphreys99 You have fallen into the trap of equivocation. People routinely yet erroneously refer to "the law" (legislation) to make arguments. You do this unconsciously when you refer to "dollars" and "money" here. You are mixing concepts in economic theory with their wicked distortions created by "the law," which is an attempt to override economics! This is why you are so off base. You take statist crap as a given, so you're hopelessly entangled.