How Banks Magically Create Money

[@primalspace]

Thoughts on how to improve our monetary system? Shoutout to DeleteMe for making this vid possible - check them out here and use code "SPACE" joindeleteme.com/SPACE

[@ChubbyPatriot17]

so, if the us loans out “money” to banks and corporations and foreign governments, can’t the federal reserve collapse like banks?

[@Aarush.A.S]

Maybe if they lost Trust

[@Aarush.A.S]

But they are Trusted a lot

[@cosmic_koala]

Exactly 💯 ​@@ChubbyPatriot17

[@cosmic_koala]

No it won't, and I think we all can see where this system lead us. The laws are simple, energy can neither be created nor destroyed, and neither can money. These governments make their money by robbing weak countries like Egypt and other third world countries, so we find that these countries have extremely difficult living conditions even for the most basic necessities of life, while we see these countries that claim to make money out of thin air (in reality they stole it) spending it on developing themselves and improving the living conditions of their people only without any consideration to the rest of the world, especially the people who were robbed in the first place, that's why this system will never succeed. Prices will continue to rise until this system, which we call usury in Islam, stops, and usury (or Ribba) is when you lend someone a specific amount of money and ask them to return a value greater than what they borrowed. as you said at the beginning of the video, it fake money bro.

[@familyguyclips-p7v]

It’s crazy that the whole system is based on trust. The bank doesn’t actually have the amount of money to pay everyone, it just hopes that we don’t all withdraw are money.

[@primalspace]

Pretty wild when you think about it.

[@lemster101]

I was surprised to hear that there's no restrictions on handing out money. In the past banks were required to keep a cash reserve, but apparently that's now gone. However, reliable financial institutions (so not FTX despite what they claimed at the time) are FDIC insured, meaning that if a bank has to pay out more than it actually has, that insurance kicks in and ensures that everyone gets their money. It's done to keep trust in the system as in the past banks collapsed and took people's life savings with them. It also helps prevent bank runs, which is when everyone wants to take out their money at the same time. People do that when they lose trust in the bank, so as long as the trust is there bank runs are less likely to happen. It does all increasingly feel like a house of cards.

[@Poorschedriver]

Yep, that's a bank run. Happened in the great depression.

[@TS-jm7jm]

​​​@@primalspace going off a gold standard was unbelievably wicked, i say this because there is a crucial aspect you overlooked, namely, the very act of printing money is inflation, however banks and financial institutions like stock markets particularly but others too, have an assortment of tricks to delay when this inflation is felt as your savings are rendered less valuable by increased money supply, and those tricks are to essentially tie that newly made money up in all sorts of abstractions that diatance them from the real markets, but eventually the house of cards must fall, it is always crumbling and being built atop of, this inevitable repricing of things to more closely align with the reality of the unit of account(i.e money) being devalued by increasing it's total amount, is an inevitable process, it can be slowed down but it is still inevitable, and this is the true origin of what is called, a recession.

[@Aarush.A.S]

Happens with small banks all over the world

[@CruiseAltitudeAviation]

Banks: creates money out of thin air. Me: tries the same thing. Also me: explaining to the judge that I was just following standard banking procedures.

[@primalspace]

😂😂😂

[@Prdimznova]

i mean this is damn big point, banks are in dept but we do have to pay it, socialism 101

[@TodaTruth]

Capitalism at its finest 👌🏾💯

[@nhitc6832]

I see your point. I guess the difference is if everyone is allowed to create their own money, that will definitely leads the hyperinflation even faster and ultimately a crash. But with banks, they have the responsibility to control it.

[@aljawisa]

Commies didn't do any better.

[@hyugahyuga3761]

The wisdom of stoicism is more needed today than ever. The book Memento Mori from Cryptic Lore distills the philosophy into something deeply practical for modern life.

[@johhh2356]

thanks

[@Henry_LiOfficial]

In fact, over 97% of all money in modern economies exists as these electronic deposits, rather than as physical cash. That's crazy

[@baberkhanbk]

3T of that "money" is also in cryptocurrency based on the Market cap

[@ThisRandomGuyYouDidntNotice]

think stocks, do you really think apple could pay out the money it's "worth" to all hodlers?

[@marco-ls9fm]

GUYS i have an idea for a CRAZY PRANK! How about on february 15th, we ALL go to our local banks and CASHOUT ALL OUR MONEY?! Its gonna be SO FUNNY

[@codmnoobtuber]

😂😂 it depends who cashes out, if all the broke lower middle class people cash out their amount of less than a thousand dollars they’ll be fine. But if the upper middle class wanna cash out their sizable savings then they’d probably freak out

[@Henry_D_Russell]

nobody with significant money in their bank acc wants to crash the economy

[@Murphy-j7j]

Ever heard of a "bank holiday?"

[@FrancisFrom254]

Yeah, let's crash our economy, yippee

[@JullianLue]

I like this idea 😂😂😂😂😂

[@azxctr]

Wow, I just learned more about how money actually works in 10 minutes than from 3 years of economics classes.

[@duckduck9487]

economic class don't want you to learn more i am guessing 😂

[@19MAD95]

I’m guessing you missed the first day

[@forgegamer3118]

😂

[@ariel000]

This comment is so cliche by now... If you learn less than a 10min video in 3 years of economic classes that doesn't talk any good about you nor your university.

[@Yavda1]

Same

[@harrisonosgarby6596]

The one thing i love about youtube is that i can just click on a video and walk away with knowledge that i had no idea i needed to know

[@kaueeeeeee]

No one: Primal Space guy: WE MODELED THE ENTIRE THING

[@exactingbirdy]

every documentary channel on youtube

[@Aarush.A.S]

To show you how.......

[@aadhithyamathan]

@@Aarush.A.S it all works

[@rohithkumarbandari]

Well, that's how explanation works.

[@constipatedparker5879]

The juice are behind all of this

[@darkpicles2219]

The part of the money system that shocks me the most is how "imaginary" economy really is. There isn't a solid and physical way to materialize it, so it becomes figurative and everyone just agrees to believe in its existence, thus giving it the importance it has

[@YESCVNT]

The most interesting thing is that the whole system basically works on promises and trust. And the money you put into banks isn't the same one you get back.

[@Giorgio_2466]

The part of the money system that shook me the most is the fact that every bank can create how much money they want at will!

[@primalspace]

Pretty crazy to think about. Thanks for watching and good luck in the giveaway.

[@El-Kompadre]

Yea thats crazy! who controls these banks??

[@kasim7929]

i don't think so. They have to only lend out 80 percent or so of total deposit amount available, They can borrow from central bank more to lend but they'll need more borrowing customers which is risky.

[@Aarush.A.S]

Can they create a quadrillion dollars 💵?

[@ariel000]

No... They can not create any amount of money the want 🤦... If that were the case then why banks you try to lend money or invest it if they can just create it. That's not how it works is much much more complex than a 10min video.

[@modern-knight91]

These videos are amazing. I think what shocks me the most is that our money system is so ephemeral now, how it's evolved from physical items to digital ones and zeros but still maintains the same basic rules.

[@primalspace]

I'm so glad you enjoy them. Thanks for taking the time to leave a comment, and good luck in the giveaway.

[@swankydreams729]

I Hit $32,590 today. Thank you for all the knowledge and nuggets you had thrown my way over the last week. i started with 5k in last week 2025... now i just hit $32,590

[@francisonyige9618]

How did you manage to achieve that level of growth? I've been trying everything I can to improve my investments, I want to retire in a few years and I need a better diversification

[@steliosmormoris1]

Timing is crucial, and as Ms Evelyn Vera suggests, it's often wise to make purchases during market downturns, prioritize acquiring solid assets, and explore options that allow you to generate passive income while yu invest

[@kiemhoangvankiem591]

I'm glad to write her tay I do hope she will help handle my paycheck properly

[@kiemhoangvankiem591]

Can I start with as low as $1000

[@hatruong9077]

YES!!! That's exactly her name (Maria Davis ) so many people have recommended highly about her and am just starting with her 😊 from Northern Ireland🇬🇧

[@ashkeddie-s7o]

The fact that banks give you like 2% interest for YOUR money but then takes YOUR money and gives it to other people for like a 20% interest and also the fact that they can charge you interest for money that doesn't exist

[@ashkeddie-s7o]

Yup

[@vector_747]

You're agreeing with your own comment😭

[@genuinefaux2895]

The difference in the interest rates is due to risk; if you put your money into a bank, it is FDIC insured up to $250k, so there is effectively zero risk; hence, a low reward. But when the bank lends you money, there is significantly more risk (statistically), which is why they can 'charge' you with more interest; it incentivizes them to take the risk, for more reward.

[@heiseheise]

>charge you interest for money that doesn't exist But that's the thing with a loan; if you enter into an agreement with a bank for a loan, then you could walk out with actual physical cash, if you wanted it, to pay for whatever it was you needed the loan for (you probably won't - but you COULD) - so the bank charges you interest to account for the fact you might do that. ...also if you're still making

[@RunnerFills]

I Hit $12,590 k today. Thank you for all the knowledge and nuggets you had thrown my way over the last week . I started with 3k last week now I just hit $12,590…

[@DrierVan]

How please can you explain because I've been making a lot of looses trying to make profit trading.

[@RunnerFills]

Weekly trading is the best way of making money in the market due to lack of experience which resulted in loosing funds... But miss Bernila George, restored hope shes a good woman

[@GamySholy-z4s]

Since meeting Expert Bernila George., I now agree that with an expert managing your portfolio, the rate of profit is high, with less risk.

[@XavierAuru-j4e]

Wow. I'm a bit perplexed seeing her been mentioned here also Didn't know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.

[@FranklinGospel-l4l]

Really you people know her? I was even thinking that I'm the only one she has helped walk through the fears and falls of trading

[@platinum_UA]

The most shocking thing in world's economy is that so little amount of people actually know how it works, and at the same time all of them are using money everyday!

[@zahra-bs2pz]

The most shocking part of the money system is how banks create money out of thin air through fractional reserve banking. When you deposit money, the bank is only required to keep a fraction of it and can lend out the rest multiple times over, essentially generating new money that never physically existed. This cycle fuels debt, inflation, and financial instability while keeping everyday people trapped in a system where they work for money that is constantly losing value. It’s wild how much control a few institutions have over the global economy, yet most people don’t question it. Such a good video!

[@Tennyson-r76]

I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Veronica Hoy

[@Abigailmira34432]

Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.

[@TiffanyHoff54t-u]

She is my family's personal Broker and also a personal Broker to many families in the United states, she is a licensed broker and a FINRA AGENT in the United States.

[@ArchieM.-rl7md]

You trade with Veronica Hoy too? Wow that woman has been a blessing to me and my family.

[@ChristopherAlex01]

I'm new at this, please how can I reach her?

[@sabinemeier2753]

I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much

[@Vishalks007]

This video just made me realize... money is basically a collective illusion we all agreed to believe in! 💰✨ Banks creating money out of thin air feels like the biggest magic trick ever-except I never got the VIP pass to learn the trick!

[@JonGreeny]

Exactly that! People have been subjugated into believing in and accepting the illusion. If majority of humans wake up to this illusion that will be the end of the banking system.

[@ronaldevnija5r477]

Wait, so banks can just type money into existence, but when I try to type up a few extra dollars, it’s called fraud? Sounds like the world’s biggest 'Get Out of Jail Free' card. I think we should all just show up at the bank on the 15th and ask for our ‘typed’ money. So without opening new savings accounts, why not open up banks. Guess I’ve been playing this whole game wrong!

[@abearmi3581]

bank got licence to do

[@braincell4536]

I mean you can own your own bank, theres just a lot of paperwork to do to ensure you dont create so much enw money that it actually destroys the delicate system

[@OnAGoodDayProduction]

Inflation is legal counterfeiting. Counterfeiting is criminal inflation.

[@boltinc2334]

😂😭🫡 too real

[@stickyz4835]

i mean its basically a matrix you can’t do anything

[@iBridgee]

4:04 Who else immediately felt a sponsor coming?

[@oricreation]

A follow up video showcasing the interplay of the whole economic system, financial markets, the role of banks, governments and the average people would be AWESOME. essentially how society functions.

[@WestonShiner-c5t]

The amount of time you guys spent just to teach me how The government uses money and how loans affect the economy is insane i love how much effort, you guys put in to let people learn and my favorite part was when i learned how loan really work and how much it affects thx primal space for teaching me have a good day.

[@NIKOSPORTSreal]

Both of the most interesting channels, Primal Space and Fern, dropped videos within 3 hours of each other. Amazing! I loved the video-I learned so much!

[@ryansnyder4442]

From $10K to $110K that's the minimum range of profit return every week I think it's not a bad one for me, now I have enough to pay bills and take care of my family...

[@AlexanderM837]

I'm celebrating a $30k stock portfolio today. started this journey with 6k. I have invested on time and also with the right terms now I have time for my family and the life ahead of me

[@wesleybowie4704]

Please how do I go about it, am still a newbie on investment trading, please can you guide me through on how you made profit?

[@AlexanderM837]

Finding yourself a good broker is the same as finding a good wife, where you get less stress,you get just enough with so much little effort at things.

[@AlexanderM837]

For me I would say give Mr George a try and you will be happy you did

[@SnewJ.Knows.]

Yeah, 256k from Mr George Bryan , looking up to acquire a new House, blessings

[@thecommenter578]

7:00 this right here is the reason why replacing people for Ai is so dangerous. An inexistent worker is just a missing link of the chain of transactions, and as we know a chain is as strong as it's weakest link

[@fool4563]

It would result in more money being held by wealthy people not distributed between average people

[@meghollows]

​@@fool4563 That's alr happening

[@DarielNolasco-d7y]

What shocks me the most is how much money the U.S. government prints each day, not to mention the additional amount created digitally.

[@loscredits2235]

6:27 how did he know i was watching this on the 5th Feb😭

[@SahamdariNol]

Top notch, thank you Primal Space! 🙌🏻

[@rishig6561]

This video has changed my entire POV on money and banking. Thanks for dropping this treasure!

[@_yonas]

Look up: Modern Monetary Theory.

[@adam249i9]

Crazy to think something so valuable is literally just numbers on a screen that appeared from someone else, adds a whole new meaning to business

[@primalspace]

It really does!

[@vinblast]

money isn't real

[@MrDarkYT56]

I like that part where you first talk about old method when money didn't exists and sudden shift to connect today's bank situation with that gold coin owners that actually very good and seamless , simple

[@gokulkrishnag.a.359]

These videos are amazing. What shocks me the most is that our money system is so ephemeral now, how it's evolved from physical items to digital ones and zeros but still maintains the same basic rules.

[@tunielmegor]

What shocks me the most is when the corrupt companies and politics take all the interest for themselves, leaving us, the taxpayers, the cost of the transactions

[@Murphy-j7j]

They give us loans with money they did not earn and we pay interest on it. The World Bank works the same way. Its much of the reason the third world stays the third world.

[@gaspardhergault729]

I love how high quality your content is, and how whatever the topic, the animations, explanations and information given are always top notch! I do hope you'll keep making space related videos though, even though the more general stuff is still great

[@Illuminati-Matrix]

Your modeling is amazing, and so is your storytelling! However, at 2:10, you got India's borders wrong.

[@c.jishnu378]

Politics............ Politics.

[@captaintzuyu]

I like how you explained it so nicely, probably the best explanation on the definition of money

[@AmeerAl-WafiqNorazam]

"But how does you fail in your life andd watching youtube until 3am and have no money and no job?" "WE MODELED THE ENTIRE THING"

[@kavpass]

usually i dont watch or even like channels like this but this one speaks to me. its super easy presented. definetly deserves a like

[@primalspace]

So glad to hear that. Thanks so much for watching!

[@dddd-n4c]

What's really crazy is that billions of people like me have never known how twisted and turned banking really is. Thanks for this amazing video like always and the part that spooked me the most is that banks can literally spin their own money up. Sorry if the comments too lame for you giveaway, but Im only an excited 12 yr old

[@sanyambothra6971]

3:00 fake promise notes to generate more money😭💀

[@GamezCodm]

4:15 wtf is the first mail man

[@mentallyfxcked4353]

tig bitties

[@verifeli]

Big time 😂

[@AActionPlayer]

Info at the right time 🎉

[@MilkyWaytub]

this topic is always something I've had surface knowledge about, but fell into the rabbit hole eventually💀

[@SJ-ki1eq]

This is the most easy, comprehensive video i have ever watched about money. Thank you!

[@BarcelPL]

I wish you'd include the gold standard and how (and why) it was abandoned.

[@dariusdareme]

Mainly because gold is just some metal. It can't possibly hold the value of all the mortgages of the world, which is worth $140 Trillions. add to that the value of all the land, factories, cars...etc. You can't just convert everything to gold. Gold would become exponentially expensive, and people would just trade 1 house for 10 cars instead of going through the bank and convert all that value to gold. And why would gold be so special, just trade things in silver, or copper, or oil... That's why the gold standard died, you can use anything to exchange value. There's no point in gold being a middleman. Where it all comes together for states is that all the people MUST pay taxes, and they have to do it by using paper money. And the government has LOTS of it. Because it's so large, it's a much more powerful entity than some metal. And you can trust your government more or less, you see how it behaved in the past. You wouldn't sell food for a Zimbabwe dollar because the inflation is 10000% per year. You would however buy the USD because the US was much more responsible with the value of the food you're selling. Governments also have an army and police with which they can force the will of the parliament (which should reflect the will of the people) , which you might prefer to a dictator.

[@Fiathater]

@@dariusdareme thats why bitcoin is going to replace gold as the hard money for the world , it has the safety and hardness of gold but the portability and storing of fiat money( dollar,euro...)

[@theringsmc]

@@Fiathater Bitcoin is by no means 'safe' or 'hard'. Its value lies purely in speculation and in no way is it 'safer' than gold. Furthermore, it is in no way tangible and serves as a second middleman in 99% of transactions (e.g: I store my money in bitcoin, I need cash to pay in a shop, so I get dollars for my bitcoins and I use the dollars in the shop then convert the change back to bitcoin???). Above all, I do not see a future where businesses and countries implement an uncontrolled, completely decentralised system of value storage to use on the same level as a trusted and regulated currency.

[@Murphy-j7j]

I have a quick answer for why it was abandoned. The Primal Space guy mentioned that the Gold Storehouses started to issue gold redemption vouchers even though they didn't have enough gold to redeem everyone. He did not elaborate on what this would ultimately lead to, the goldsmiths would get more aggressive with their fraud. Eventually the public would catch on and start to all withdraw their gold in a panic. These storehouses were the first banks, their gold receipts were the first paper currency, and these panic withdrawals were the first bank runs. These early banks really liked to buy government bonds, and governments really liked how the banks could fund all their spending by just issuing more gold vouchers, eventually the government suspended the redemption of gold declaring the Banks' fraud legal. They of course sited all kinds of excuses, "antiquated gold system does not work with modern society" and all that spin. So now we have the Federal Reserve, it prints dollars for nothing and funds all of the government's spending. So the quick answer is: state coercion. You can look up Executive Order 6102, this is when FDR suspended the redemption of dollars for gold and ordered all Americans to turn in their gold. Britain also has a lot of colorful bank history from like the 1860's to the final removal of the gold standard in like 1930 or so. This happened gradually.

[@Filippenzen413]

​@@dariusdaremeAmen brother. We are not free. We are slaves in different times.

[@christianplay4041]

4:17 I read through each one of the emails I was left laughing so hard 😂

[@tiempo9855]

The video was really good up untill 7:40 . You yourself say that money is created when a loan is made (i.e. created out of nothing and a liability to the bank -which is correct), but then directly after you say: "banks have to limit how much money they create. In the past, they could only lend out a portion of the actual cash they had in their backup supply". Do you not see the obvious error? There is no such thing as a "backup supply of cash" since all money is credit (i.e. liability on the banks' balance sheets). Then you go on to perpetuate another huge misunderstanding by saying that "they can go to the central bank and ask for more money" Again, that is completely contrary to your previously correct statement and is factually false. Please read: Money creation in the modern economy Quarterly Bulletin 2014 Q1, Bank of England And please issue a correction to the video. I can give you more sources and explanations if you need.

[@Maleriandro]

if there was no "backup supply of cash", wouldn't that mean that no one could withdraw cash?

[@primalspace]

Sorry, but I stand by my explanation. At some point, many countries followed the fractional reserve method of having to retain a certain percentage of the digital money they were lending out in cash form, but this is no longer the case. It's true that physical cash is essentially just credit and essentially meaningless (like I explained in the transition from gold to paper notes), but in the modern age, most people still think of cash as "real money", a kind of anchor, just like gold was in the past. Instead of the fractional reserve system being used to limit how much a bank loans out, there are more specific requirements banks must have before they can lend out money. But if they need more money to up those reserves, they can take out a loan from the central bank.

[@tiempo9855]

@@primalspace Please read the official bulletin published by the Bank of England that I mentioned in my comment, it will help you understand more clearly. "At some point, many countries followed the fractional reserve method of having to retain a certain percentage of the digital money they were lending out in cash form" -> Banks have historically been restrained from lending based on the liquid assets that they hold (this is not the same as cash). In the USA this was natioanlly mandated by the National Bank Act in 1863 to ensure liquidity. Over time, and especially with digitisation of currency, the reserve requirements have changed and are now used as a part of monetary policy (although not an important aspect). --> This is not at all the same as them "being able to lend out a portion of the actual cash they had in their backup supply". "But if they need more money to up those reserves, they can take out a loan from the central bank." -> No, banks do not take out loans from the central bank. The central bank does not create money. Here are some additional sources you can read: Sheard, P. (2013). Repeat After Me: Banks Cannot And Do Not “Lend Out” Reserves. Can Banks Spend Their Reserves? - Fed Guy, 2020

[@primalspace]

A couple of quotes from the “repeat after me” source. “Central banks don’t constrain the amount of bank reserves they supply. Rather they supply whatever amount of reserves the banking system demands given the reserve requirements and the amount of deposits have been created.” Also, “If bank lending increases and the associated increase in bank deposits leads, as it will, to a higher level of minimum required reserves, the central bank will supply those reserves”.

[@tiempo9855]

@@primalspace It seems that my comment from before was deleted by youtube, so here it is again. Please read the official bulletin published by the Bank of England that I mentioned in my comment, it will help you understand more clearly. "At some point, many countries followed the fractional reserve method of having to retain a certain percentage of the digital money they were lending out in cash form" -> Banks have historically been restrained from lending based on the liquid assets that they hold (this is not the same as cash). In the USA this was natioanlly mandated by the National Bank Act in 1863 to ensure liquidity. Over time, and especially with digitisation of currency, the reserve requirements have changed and are now used as a part of monetary policy (although not an important aspect). --> This is not at all the same as them "being able to lend out a portion of the actual cash they had in their backup supply". "But if they need more money to up those reserves, they can take out a loan from the central bank." -> No, banks do not take out loans from the central bank. The central bank does not create money. Here are some additional sources you can read: Sheard, P. (2013). Repeat After Me: Banks Cannot And Do Not “Lend Out” Reserves. Can Banks Spend Their Reserves? - Fed Guy, 2020

[@Kscopes8888]

These video was a great visual example of how it works. Im going to have to save this to show other people

[@techlife-101]

"So you're telling me banks just type money into existence? And here I am, typing every day but still broke. Clearly, I'm in the wrong profession!" 2025

[@aarav8407]

Yeah you didn't know? When you take a loan from any bank unless you specifically ask for cash they would just press few numbers and Enter and done congratulations your loan is credited to your account, In fact even the Federal Reserve creates money the same way since the crash of 2008 The fed has injected more than 8 Trillion dollars into the economy and the fun thing about all of that is this money first goes to the rich guys which drives up the prices of all hard assets such as stocks, properties etc thus making rich richer and since your broke ass can't afford to buy them you stay broke🙂

[@Murphy-j7j]

You work for money that another man can print for free. Most people must provide value to society to earn money for trade (like that farmer and the tool maker), but the banker at the federal reserve gets to print dollars and buy all our stuff with it.

[@techlife-101]

@Murphy-j7j exactly

[@thisiszubayer]

Wow! This video cleared out all my confusions about the monetary system! Great video!

[@KenRiiiii]

Dang, great content. Well-researched and insightful. Learned more about how money works than what I initially thought off.

[@antespect]

PRIMAL SPACE DROPPED ! ! ! ! ! ! 😍😍😍😍😍😍😍😍😍😍😭😭😭😭😭😭😭😭😭😭😭😭

[@LEGENDAYUSHjee]

I knew for the first time that Bank creates new money to give loans . Btw whole video was interesting, thanks for delivering such a good content in a few minutes. 🙂

[@arhiyasiddiqui8347]

I have a 11 year old son who likes learning about things and money is one of his favourite things. When I showed this video to him, he liked it and started to tell me his favourite part of the video. He said “I like the part when people used items in the medieval times because even though coins were not invented, people actually trusted each other and gave equal amounts when there was not that much law in place. Also, when banknotes include UV ink to show patterns, show culture and also give security I look through it to see any Easter eggs and history. Thank you Primal space for this video! My son loves your channel and always likes to watch previous videos.

[@William.Kjerulff]

We all know damn well that this did NOT happen

[@zSyrex]

Please do more finance related videos.

[@Makeitwithkelly]

One of few channels I enjoy watching on KZbin 🤝❤️

[@Aarush.A.S]

Me too ❤

[@primalspace]

That means a lot! Thanks for watching 🙏🏼🙏🏼

[@Biyu-m8w]

Thanks for your continued updates, I would rather trade the stock market as it is more profitable. Even though I barely trade myself, I make an average of $34,500 per week.

[@MarkSteven-s5k]

I was financially favored and thank God I was making $32,000 a week in profit no matter how bad the economy was.

[@AndreaArthur-o1x]

Thanks to Grace, I have become rich and I am no longer a debtor but a creditor.

[@NathanAmir]

how …? I am new to cryptocurrency investing could you please guide me on how to make a profit?

[@JanetKenneth-l9j]

+1

[@JanetKenneth-l9j]

4502

[@CrowdReview]

Loan creation was the most shocking and fascinating at the same time. That you can just type a number and create a loan. Thanks for enlightening us.

[@benmcreynolds8581]

Our country is in complete DENIAL about how crappy things have become. Basic Living should not be unaffordable here in the US. So many people are barely able to afford rent. ~Serious question: WHY has our country allowed things to get THIS bad? How is Nothing being done about it? Unaffordable cost of living is the #1 issue we need to fix in order to keep our society functioning. This obsession with Perpetual growth & perpetual profits is impossible. Yet our country acts like its completely normal. There is no way things can function like that. A huge amount of people struggling to afford Rent.. Of course this affects small towns & local businesses because the rent on these shops increases too. Our country basically requires everyone to become wealthy. Remember this is just to afford the cost of basic living. It's not possible for us to live in a system where everybody can be wealthy. So lots of store fronts are becoming vacant. Average people cannot afford rent. There is absolutely no help for our citizens who are now stuck dealing with poverty.. (and worst of all, we have to wake up everyday and see that our country is completely ignoring that any of this is happening. The media just acts like none of this is going on. They just continue to show us clips on the news and statistics in the media like "Look how many new jobs were created last month, Look at how well our economy is thriving") Homes are so expensive, Yet Our country has NO SYSTEM that helps someone if they lose their home.. This corruption will DESTROY our country. It has made our country a country that lacks sympathy. We've forgotten what the soul of America is made up of.. It came from a thriving multilevel system.. Where even the lower income brackets had obtainable living options.. if the lower income citizens cannot afford to exist, the system that we know will begin to breakdown..

[@Spirit_Circle]

This is the result when governments can create currency out of nothing

[@燧發槍]

As an Indian we pray every day for first worlders like you to keep your luxurious lifestyle and love to hear complaints about not being rich enough or not having enough opportunity. Sorry healthcare is expensive, I have never had it at all. Love from Kota ❤️

[@Murphy-j7j]

The system is functioning as designed. The PrimalSpace guy described how banks print money, but failed to mention the implications of this. Money is a claim on wealth, not the wealth itself. So when bankers at the Federal Reserve print money they are granting themselves the right to consume all our resources and stuff without contributing anything in return. This is known as the Cantillon Effect. Inflation is a massive wealth transfer scheme from the poor to those who control the money printer. This is the origin of the inequality you cry about.

[@wmcyohan]

The fact that banks literally create money out of thin air blew my mind! 🤯 I always thought they just loaned out deposits, but realizing that most money doesn’t even physically exist is wild. This system makes me wonder, if money is constantly created through debt, is there ever a way for the world to be truly debt-free? Also, that space shuttle Lego set looks amazing! 🚀🔥

[@ratatui900]

3:23 - eventually the customer will payback, where does he take money to pay back his loan as he probably spent his landed money(which is obviously the reason he takes a loan), so he probably gonna make some item or service that other people could buy thus creating a value for society, which practically means that he's expanding economy and those money wasn't fake money at the first place, it's more like a delayed money. So doesn't it mean fake money is created when you don't pay back your loan or pay back with the money that you scammed off of others(created no value for society or even decreased it)? If true it means that global debt could be indicator of amount of scam or rent seeking in the global economy?

[@xriginwashere]

Nice, I never realized money could be made so easily! Also another W upload from primal space :)

[@primalspace]

Thank you. I'm so glad you enjoyed it! Good luck in the giveaway!

[@xriginwashere]

Thank you!

[@rachmadsuhartono]

If bank's digital loan is just typed out fake money out of thin air then shouldn't it means that our digital return (and its interest) is also just fake money which adds nothing for the bank? This doesn't feel right

[@なおなお-y2s]

normal people can't print fake money and have to work every day to repay the interest that forced labor is "real" profit of banks

[@pordilos]

This explains the financial system so well. This should be played at schools.

[@krishivrastogi9463]

I really never thought about the whole financial system in this way, it's kinda scary and genius at the same time!

[@battleground1123]

scary and stupid.

[@sehzad4761]

The part of the money system that shook me the most is the fact that every bank can create how much money they want at will!

[@braydenthebear]

The part about the Central Bank and Government Bonds really shocked me. I can't believe that my tax dollars are being used to cover the government's debt, while they keep creating more and more bonds while borrowing even more money.

[@tiempo9855]

The US government doesn't use your tax money to pay it's debt. It creates new debt to cover the old one.

[@FunkyJeff22]

@@tiempo9855 Does it matter?

[@_yonas]

​@@FunkyJeff22 Yes. - Who else but the government can create its own currency? Nobody. Banks are only allowed to create new money because the government allows them to. Anything else is counterfeit. The money must come from the government. Every single dollar in your bank account is there because the government allowed it to be created. So what money basically represents is goods produced in a country, and when that relationship starts to get out of whack, you've got something called inflation. Secondly, the government could simply create new money without selling bonds. This is a holdover from the days when the currency was backed by gold. It's completely unnecessary today.

[@KunyangRoom]

Very very very good video bro, 🎉🎉🎉🎉🎉🎉

[@primalspace]

Thanks so much. I'm so glad you enjoyed it.

[@madboii648]

4:18 AHM!! 🤨

[@MacAlmario22]

What shocks me the most is that the promise note system which is being used by the banks-I didn't realized this until I watched it this video. Thank you for making such amazing content. God bless.

[@Nightscape_]

My money came from my parents. Now I get to retire at thirty eight.

[@tudormuntean3299]

Same, I'll retire at about 30 based on my calculations

[@TJ-W]

Must be nice.

[@rosegold-beats]

Adding more money doesn't work cause the value drops. Those 4 people with a 100 dollars have the complete supply of all the money, making them super rich. The only reason a country can get in debt is to keep the value the same while increasing money, so the US sacrificed itself to keep the same value. But the funny thing is that value is an opinion now that we are flooded with money since we have no issue buying whats actually valueble like food, water and clothes. So as long as we accept the price of the dollar then it will be a fact that a dollar is really a dollar. Value is only in the mind

[@Omprasadmunde]

We have a money plant at our garden , that's the source of money for me .😅

[@YESCVNT]

So basically a tree.

[@sandindesoysa4868]

2.57 literally giving way a piece of paper and getting back the value mentioned with an interest. Crazy yet mind blowing exponential type of money gain.

[@joythought]

Sorry but you've missed out the history of writing (starting with cuneiform) created specifically to describe money (debts) in the form of clay tablets which were receipts and promissory notes. There was no significant history of bartering. That is a myth. Money in the form of debt has been there for the last 6000 years or so. Again that was the basis of humans creating writing!

[@mrsecurity4068]

That's not a discussion of a systemic implementation, more like an extension of bartering as an IOU. It's not as you could take the "IOU" to anybody and get compensated, especially not neighboring civilizations, it was for the like of keeping track of who owed what in times of bartering. Yes the video was abridging history that to describe the mechanic of the modern financial systems now.

[@primalspace]

This is a video about money, not writing. It's definetely an interesting fact, and I read a lot about how writing and debt were related. And I totally agree, it seems like bartering was never really a significant part of transactions. What I showed at the start of the video is a debt based transaction.

[@Mdfan3071]

Wake up babe, new primal space video

[@elitep0ol720]

I was somewhat familiar with the idea that banks create money out of thin air to lend, but I’m still shocked by the sheer scale of it and how much is generated every minute. This video is incredibly well-made and does a great job of explaining everything. The animations were also really helpful!

[@primalspace]

Thank you so much. I'm so glad that you enjoyed the video - it really means a lot. Good luck in the giveaway!

[@ortana-v2]

I think this is actually my favorite video of yours.

[@primalspace]

I'm so glad that you enjoyed it! Thanks for watching.

[@Anas_Sherif]

As a coin collector, I've always wondered why some of the old Banknotes wrote "I promise to pay the equivalent of ... in exchange of this note" or something similar And also there is a thing called "Rice coupon" that was used in china and I never really understood why it isn't just called "Money", maybe it's the same thing but with rice instead of gold! Loved the 3D animations in your videos btw!

[@TylerR909]

3:36 the idea of Velocity of Money is such an interesting concept. I pay $100 to a grocery who pays $100 to a farmer who pays $100 to a tractor company who pays $100 to a pencil manufacturer who pays $100 to a lumberer who pays $100 to a saw mill who pays me $100 for whatever my job there is. The same $100 just generated $700 worth of economic movement. Super interesting stuff.

[@Tech-YOYO]

The cool thing about money is that it both exists and doesn't exist. Money can be both imaginary and not imaginary. 😮😮😮

[@louwe_1747]

The part that really got me was how much the whole system relies on trust. It's a crazy thought that it's all built on the idea that everyone won't try to withdraw their money at once.

[@EzraSJZ]

This video explained the system so fluently and helped me understand economics so much more… amazing video!

[@nirshadnijam2291]

This video had very new information for me. And, it is crazy, how humans on a floating rock manage to create system that is virtually present everywhere.

[@KiddyTales071]

According to me banks are main pillar of any country.

[@TvMi-l5x]

I was more shocked at 2:39 in the invention of loans. I just love the way you explain it I watch your video's in tv like cinema

[@SupremeMediaYT]

A shocking fact is that banks can generate it essentially "out of thin air" through the process known as fractional-reserve banking

[@foravilaexpresscfm2644]

The fact that debt literally generates money changed my whole perspective on the financial system. Great video, super eye-opening!

[@user-ml8ld1kl6b]

The creators of this video ARE NOT suicidal. I repeat THEY ARE NOT SUICIDAL. Thank you for making this as transparent as you have!

[@NateBaxley]

I never thought about the fact that individual bank loans create money in a way very similar to the federal reserve creating new bonds. Great video.

[@Mr.Adorable]

I like the analogy when you used it to explain that Bank promise thing with goldsmith promise note

[@Kevin-di1ce]

Great video! It was nice seeing such a clear explanation of the system. Country debt is sick.

[@mr.random4836]

This is a mind blowing system based on creating money out of thin air! Really puts into perspective how little about the world we know. The fact that I have to rely on a yt video to learn about this shows that maybe the world doesn't actually want the average person to know about this.

[@ChrisFranklin.2260]

I feel like it's always more complex than even explanations like this make it out to be, but the bottom line is if the government is always spending more than it takes in, that's totally unsustainable and something needs to be done about it. Love the style of your videos!

[@Lion_4-7]

The most shocking aspect of the money system is that human greed is only satisfied by the soil on dead body

[@DrTrax1887]

It’s important to highlight that this system is indeed not a bad thing in general. Giving out new money as it’s mentioned in the video, thrives the economy and creates new things and the society gets better living standards.

[@daniraks345]

Wow man this video was probably the best video i have ever watched on youtube

[@Biggu-TV]

Another banger, gives a great outline of how fractional reserve banking works

[@primalspace]

Thanks so much. I'm so glad you enjoyed the video.