Why doesn’t the Bank of England tell the truth?

[@tatianastarcic]

Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.

[@jackson-z7o]

ideally, you should consider financial planning to get the best results with your money, notwithstanding economy situation

[@richardhudson1243]

Well agreed, I'm quite lucky exposed to finance at early age, started job at 19, purchased first home at 28, got married shortly afterwards to raise kids early. Going forward, got laid-off at 40 amid covid '19 outbreak, immediately consulted with an advisor in order to stay afloat and after subsequent investments, I'm barely 25% short of $1m ballpark goal as of today.

[@JacobsErick-u8r]

that's incredible! would you mind if I vet your advisor please? started investing in stocks november 2022, but not confident to make the correct investments as of now, seeking professional help to achieve my financial goals

[@richardhudson1243]

Melissa Terri Swayne is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.

[@winifred-k9e]

She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.

[@kellyeye7224]

It's a big club and we aren't in it.

[@jamesbarbour8400]

They're still happy to take our money, in the form of taxes, to pay for it all, though !

[@edwardpreston3663]

Oh yes we are. Who do you think is going to end up paying for this?

[@johnmcdonnell81]

Yes but, the club can't exist without us, the people. Ironic it's not, it's just a con.

[@patrickkeating7074]

You're not in it .......if you were born a wage Slave........

[@sarahsmith6878]

no where not. but we fund it

[@barbaradeininger9521]

"If the people knew how the monetary system works, there would be a revolution by tomorrow morning" Henry Ford

[@TG-oo9se]

Hd never said that,it was a rockenfelda

[@neveragain1111]

​@@TG-oo9se It was Henry Ford who said in substance this: 'It is perhaps well enough that the people of the nation do not know or understand our banking and monetary system, for if they did I believe there would be a revolution before tomorrow morning'. The above was also published in the 19 April 1938 Social Justice on page 10 where it is attributed to "Representative Charles G. Binderup of Nebraska" The 1957 opinion article by Russell Maguire "How Internationalists Gain Power" in the American Mercury volume 85 pages 79-80 states: It was Henry Ford, Sr., who said in substance, "It is perhaps well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." Later sources may make this sound like an exact quote, but "in substance" makes clear it is not an exact quote. What Henry Ford definitely did write in his 1922 book My Like and Work at page 179 is: The people are naturally conservative. They are more conservative than the financiers. Those who believe that the people are so easily led that they would permit the printing presses to run off money like milk tickets do not understand them. It is the innate conservation of the people that has kept our money good in spite of the fantastic tricks which financiers play-and which they cover up with high technical terms. The people are on the side of sound money. They are so unalterably on the side of sound money that it is a serious question how they would regard the system under which they live, if they once knew what the initiate can do with it. In summary, it seems that a paraphrasing of Henry Ford has been mistakenly identified as an exact quote.

[@adrianchetwynd1334]

@@TG-oo9se Henry's quote is very similar, GOOGLE it.

[@TG-oo9se]

@@adrianchetwynd1334 Henry was a patriot

[@adrianchetwynd1334]

@@TG-oo9se Yes, and now patriots are classed as terrorists! Henry proved who it is in control and that cannot be named.

[@LCD72]

The answer to your question is simply that they don't want to 'turn the whole of politics in this country upside down' (4:20)! They like things as they are, with the plebs in their place.

[@Hickalum]

Nah … That’s too elaborate. It’s money … Its ALWAYS money.

[@Larryh-c4u]

The Bank of England is being sensible. If they announce that there is enough money around to pay for everything then people will stop working. Human action.

[@jimlyon7276]

@LCD72 - Well, @ long last, the question has FINALLY been asked, but seemingly, nobody wants to give a complete answer ! But rather than saying that by answering it "they don't want to turn the whole of politics in this country upside dow'" ( Rather I see that the PRESENT state of politics is upside down & that if only politicians were to be open & honest, ONLY then would politics be turned the right way up ! It's now becoming clear that such politicians have a socio-psychopathic mindset where e.g. MONEY = POWER ! Another part of that evil mindset is they are perfectly happy to inflict child poverty on the majority of children & their parents. - It's the working class that built & maintains civilisation & the elites who benefit most from that ; BUT rather than ANY appreciation, all we EVER get from them is contempt for being what we have become as a result of them quite deliberately having us "dumbed down" by setting up the "education " system according to the PRUSSIAN model so we can be more easily controlled (which just shows how frightened of us they REALLY are (Ref: "Weapons of Mass Instruction" by John Taylor Gatto )

[@MrHughk1]

@@Hickalum There is no money, only currency which is based on debt. You cant buy anything with those digits on a screen as they are not money. You dont own your house or your car or anything else, the government does but it is kind enough to let you use the items.

[@ty194]

That's why they ousted Truss.

[@JoinTheTemple]

I have said it once and I shall say it again: the BoE (or any central bank for that matter) doesn’t need reform or to be replaced, they need to be done away with entirely. No market based economy should have these monstrosities of command economies. They sod everything up.

[@MrHughk1]

UK and USA have been bringing democracy and central banks to free independent states like Libya for years and fucking them up, why though? follow the money, IMF.

[@TavistockLiesBrainwashing]

Have you read Shenanigans Bank?

[@JoinTheTemple]

@ - cannot say that I have. Interesting read?

[@shauneden4229]

In the UK we aren't allowed to know who really owns it by an Act of Parliament.

[@blackbulldog4897]

@@shauneden4229 which Act is it?

[@Ghengiskhansmum]

Why would they? Politicians don't, MSM journalists don't. So if the bank did tell the truth they would be hounded out of a job.

[@evildrome]

Telling the truth is injurious to your career.

[@jafar4marva]

The origins of this "created" money began of course when the fledgling banks came up with the bright idea of lending the deposits (on promisory notes) many times over to multiple creditors. If the depositors ever were to have simultaneously called in their 'loans' the bank would crash. The system is designed to profit from usurious lending which benefits the wealthy, effortly increasing their wealth. and is ultimately funded by the needy, keeping them in poverty. Thus the system teeters on collapse, being built upon on non existent reserves, a legal ponzi scheme, regulated only in as much as to relentlessly suck the blood from the poor. Not that taxing the poor or usury were new. Apparently the teachings of the Christ were lost along the way.

[@sneezyfido]

I'd add to look into recycled jobs among BoE top management. My gut instinct is that it's one of the places where politicians get cushy jobs after their "service"

[@theyarelying2u]

The BoE, IS THE GOVERNMENT. Anyone who thinks different is a fool & should go to the back of the class.

[@jafar4marva]

@sneezyfido Didn't celebrity Balls start there before politics?

[@samanthadonaldson2246]

Honestly our government has no idea how people are suffering these days. I much feel sorry for the disabled people who don’t get the help they deserve

[@claresmithy4667]

Investing in alternate income streams should be the top priority for everyone right now especially given the global economic crisis we are currently experiencing. Stocks, gold, silver and virtual currencies are still attractive investments at the moment.

[@madiezancanellatl9205]

You’re correct I make a lot of money without relying on the government. Investing in stocks and digital currencies is beneficial at the moment.

[@ningyen1444]

Can you show me how to trade profitably, I honestly need another source of steady income

[@claresmithy4667]

I employ the expertise of a professional for that, Kate Mellon Bruce because it isn’t as easy as it seems

[@claresmithy4667]

She's active on face book @

[@pattayaesl7128]

This is how it works in the US: The Department of the Treasury calls up the US Mint and declares that the Federal Reserve has expressed the need for X amount of dollars to be printed. The Bureau of Engraving and Printing prints the money. The Federal Reserve then buys the bills from the United States Mint for the cost of the printing - say for example 234 dollars per 1000 $100 denominated notes. That would be $2,340 for the cost of 10,000 $100 denominated US bills equaling $1 billion in value. Next, The Fed deposits these bills at face value into their own account. Again $2,340 just bought them $1,000,000,000 dollars. The Fed then purchases US Treasury obligations such as Treasury Bills, Treasury Bonds, and Treasury Notes, and pays the money they just received right back to the US Department of Treasury, which spends it into the economy. The Federal Reserve Banks, previously having nothing, now have the full face value of the money printed in their account. Additionally, they will receive the interest which will be paid on the bonds that were just purchased. It’s the greatest legal organized crime racket of all time.

[@aieverythingsfine]

Its literally just that isnt it, organised crime

[@soyboymotivation]

...and the US Federal Reserve is a private bank owned by ✡️s. One Trillion dollars a year interest payments are being paid by US taxpayers to the ✡️ owners of the Federal Reserve bank.

[@MrZoomZone]

Search "Modern Money Mechanics pdf"

[@captaintruth]

It’s a Zionist model, look who pulled the string for both

[@shabudinjaver4672]

Because we all over the world depend on the U S dollar as the reserve currency and the U S government spending it recklessly causes inflation in the poorer countries.

[@Italanon]

Positive money have been trying to bring this fact to a greater audience for some years now

[@onandon-nq1zw]

Thanks Richard. As an old timer Officer of Customs & Excise collecting the majority of the types of UK taxes, we were actually educated by the Department that tax is simply levied to destroy the money created. In our time, all of us had interactions with local MPS and it was clear they also understood that. We interacted with the toffs - Lord St Oswald of Nostell certainly understood. I can only guess that, with the 1980s selling of kitchen sink government economics by Thatcher, although ridiculous, this has been the knowingly adopted theme by all governments and opposition, excluding the Corbyn years. Time has made clear that this falsity benefits the Establishment and the wealthy. I've spoke out about it for years as a member of the Labour Party but it's become so ingrained in those carrying authority that debate is impossible. I can't believe that they were all thick.

[@sarahann530]

You must have been a senior member of the thieving HMRC

[@DewtbArenatsiz]

Yet here we are with a labour pm cutting benefits for the old

[@edwardpreston3663]

The money created out of thin air is DEBT. See above. It is you that is thick if you can't see that create and spend ultimately ends badly for all.

[@onandon-nq1zw]

@@maximuspennyweather Who are you to question.! Seems you have a stereotypical view of the civil service. C&E, because our remit was so wide ranging was the great trainer of staff, even with its own large computer department in the 60s - one of the first in the UK. And one area was the purpose of taxes. One little taster I recall was at the introduction of VAT the IR accepted a standard 7% profit margin for income/corp tax in the pub and restaurant sectors. Our greater depth of finance and accounting training caused it to throw its standard margins out the window when our reality demonstrated the margin was more akin in those days to 25%. I think you need to revise your prejudices.

[@flakieflake9616]

Go read the book "Fiat money inflation in France" where Socialism began, didn't take long for the first of many failures and deaths of thousands which has been the hallmark of Socialism ever since. It fully explains what happens when you don't destroy the created money and instead carry on printing more of it.

[@mony2934]

Enough is Enough!!!!!!! Wake up Britain!!!!!!!!!!! Get them out !!!!!!

[@misst.e.a.187]

Who and how?

[@aadd3538]

Lol . Another vague comment. Who are you talking about? Stop plagiarising Tommy Robinsons chants.

[@DavidCurvin-p2q]

I'm new to investing, and l've lost a good sum trying out strategies I found in online tutorials. I would sincerely appreciate any recommendations you have.

[@LilyR-s9y]

As a beginner, it's essential for you to have a pro or a very good trader to keep you accountable.

[@LilyR-s9y]

If you can, then get a professional to trade for you I think that way your assets are more secure.

[@LilyR-s9y]

Someone like expert viola patterson

[@Barbara-k3x9j]

The first step to successful investment is figuring your goals and risk tolerance either on your own or with the help of a financial professional but it's very advisable you make use of professional.

[@Martensalberto]

I've seen this name before and l'm now interested. Could you let me know how I can reach her?

[@arthurdixon5890]

Very interesting. Thank you for exploring this subject.

[@JonDingle]

Very interesting, IF an individual OR company director was to behave in such a way then it is branded FRAUD, deception or at the very least fiscal misrepresentation. Its a crime!

[@edwardmclaughlin7935]

If the BofE told the public what they do and why they do it, they would be banged-up for a very long time.

[@misst.e.a.187]

Same as the Federal Reserve. They're all in cohoots

[@ramseybeing]

Thank you for exposing the lie that justifies the dispicable enforced suffering on the people of this country.

[@noahp5871]

I have written to the bank of england to ask how much money has been created - they dont even bother to ask they just give you the handout they print every year.. proper useless and feels very funky. thanks for the good work !

[@MusashiSamurai]

Usury Usury Usury Leave it all!

[@soyboymotivation]

>>>>> ✡️✡️

[@captaintruth]

But it keeps the goyem in check!

[@lespaul2000]

💯 Too much generational propaganda for regular Brits to know to disease that is usury. The whole economic system runs on it. It needs to stop.

[@paulyflyer8154]

Gordon Brown made them independent so that they could be dishonest to their heart's content.

[@blackbulldog4897]

It's a myth. The BofE isn't independent in any way.

[@ncooper8438]

Only a fool would believe that the Boe is independent of government.

[@jamesbarbour8400]

​@@ncooper8438absolutely correct - it's merely the illusion of independance from Government - wish more people were awake like your good self, to see through the veil of BS we're constantly fed by Politicians everywhere !

[@paulyflyer8154]

@ncooper8438 Only a fool such as Brown would do it.

[@jamesbarbour8400]

@paulyflyer8154 indeed ! And onlyva fool such as Brown would sell off most of our physical Gold Reserve at the bottom of the Stock Market - an absolute f@#kwit - but that's Labour for you !

[@em-rg3xf]

Just found this . And subscribed because I'm relieved that someone can convey the truth about the system.

[@nigelp567]

Welcome to the world of central bank USURY Richard! Once you change your thinking to understanding that the central bank is a private institution run for profit NOT owned by the people, operates in a foreign jurisdiction (CofL - see Professor Richard Werner videos) & controls parliament via the “Remembrancer” (the permanent unelected City of London representative in Parliament) then you will see the deception. If the Treasury has the power to create debt & interest free money given to it by the people why does it outsource this power to the BoE who creates money from DEBT & charges usury interest to the people for its own profit !?!? The BoE was created in 1694 after William & Mary were installed as royals in England. They were brought in from Amsterdam and financed by the Dutch bankers who were promised that they could create the Bank of England and therefore end up controlling the money supply… Our money belongs to them whereas it should be state banking owned for the people, by the people, created directly by the Treasury interest & debt free. Please learn the history behind this elaborate scam and understand how it can be changed.

[@scottyfive4319]

The Bank of England was originally a private bank with shareholders, but the government nationalized it in 1946 due to its importance to the UK's economy.

[@nigelp567]

@ This is true however I bet you didn’t know that it didn’t change its operations of money creation and fractional reserve banking (usury) as a state run bank for the benefit of the people would have done, and in 1974 the BoE established the BoE nominees company (no. 1307478) a wholly owned subsidiary with private shareholders taking 50% of the shares. There is a suspicion that this was a reverse takeover of the BoE back to its original shareholders. In view of the fact that certain aspects of the BoE operations are protected by Royal Charter section 27(9) of the companies act 1976 AND the official secrets act 1989 and is therefore not subject to parliamentary or public scrutiny, one can conclude that there is substance to these allegations.

[@aieverythingsfine]

Do "them" have any names?

[@timkelly5602]

@@nigelp567 Totally agree, just wrote similar above with a little more detail, last time i looked, private investors received 77% of profits, the Treasury 23%, which suggests that more shares owned by Goverment initially have been trasferred into private hands, Rothschild speculated to be the biggest holders... We need to end it's mandate and create a fully state owed bank, but no politician is prepared to risk it after Lincoln and JFK, thus it is never even mentioned....

[@captaintruth]

The hairs on my arms are stood on end. I can’t believe so many people are waking up and informed about this. I felt like I was shouting into the void. The 1067 charter for the CofL has enslaved the British people for nearly 1000 years now. The square mile has the blood of an empire and half a millennium of enslavement of the British people on their hands

[@lisaabbwtt6118]

It's worldwide! In South Africa we have criminals stealing millions, and I always wonder where the money comes from? It's not evident in our daily lives. All our governments are doing the austerity thing...but since the gold standard was done away with...money, like history, is a set of lies agreed upon. 😢

[@Dicky104]

It's very rare getting the truth from someone in authority.

[@Drc581]

Real talk finally someone speaking the truth

[@marcokite]

...that has been known for decades,so what?

[@paulbates1167]

​@@marcokitenot by the majority,it isn't taught!

[@Archi-baby]

Respect to you for standing up to corruption 💯

[@harrison-p6g]

Fantastic video🔥🔥! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??

[@williealbert3040]

Trading on a demo account can definitely feel similar to the real market, but there are some differences. It's important to remember that trading involves risks and it's normal to face looses sometimes. One piece of advice is to start small and gradually increase your investments as you gain more experience and confidence. It might also be helpful to seek guidance from experienced traders or do some research on different trading strategies.

[@kirstydouglas-u9r]

If you are trading without a professional guide... Ah, I laugh, because you will stay where you are or even suffer huge losses that will prevent you from trading, this has been one of the biggest problems for new traders.

[@lucyaudrey18]

I think l'm blessed if not I have met someone who is as spectacular as expert mrs Fenella.. Highly recommended🙌

[@Caterinavasile]

Wow, I'm surprised to see Fenella mentioned here as well. I didn't know she had been kind to so many people

[@ismailarif-y7u]

​I'm also a huge beneficiary of her.. I thought myself and my family were the only ones enjoying Fenella trade benefits...

[@HairyCheese]

Yup. I've been in banking technology for 30 years. When I've spoken to the business about creating fiat, most don't understand this. Great video. ❤

[@ThomasVWorm]

All money is fiat.

[@leegarryallen]

There's no wonder the economy is fundamentally broken. Every loan results in a wealth transfer from poorer to richer. It's a trickle up of money. Only ever in one direction. To then refuse to tax this money back from the rich leads us only to one place. A massive gap between the have and have not.

[@gjt2209]

“GIVE me control of a nation’s money supply, and I care not who makes its laws.” Mayer Amschel Rothschild

[@zbawieniejestwieczne9013]

@git that's why they created EU, so they can control countries by euro currency. The biggest scam on earth. Who prints euro controls each country who has accepted euro as currency of their country. Big mistake...

[@michellebyrom6551]

Now there's a name synonymous with real power and control.

[@robocombo]

I know the pieces of this... but never put it all together! Mind blown, thanks for the concise explanation!

[@gaspode505]

To justify privatization of public services and ousterity 😂 Same for council housing transferred into private hands 😢

[@MaRi-Br1984]

Exactly, and not only that, but to privatize it for cheap too, because they made sure to position one of the superpower country as a poor country that was begging for help and that had to sell everything off to the lowest bidders or else they would simply go bankrupt, that was their reasons, it wasn’t because the services were going to get better or be cost effective, they knew it couldn’t possibly be true because bringing in a private middleman was never going to cost less, because it’s the opposite, and now they want to continue clowning the country still with the water companies being one example.

[@captaintruth]

PFI contracts

[@BigReptileCrew]

​@@captaintruthwhat are they?

[@MichaelGreenLagos]

Thank you for telling the truth

[@NoMoreVoxPops]

*Why doesn’t the Bank of England tell the truth?* ====================================== Follow the money....

[@Arbitrary-z6j]

This is just more communist garbage from people working in Universities living off of public money. It also ends up devolving into anti-Semitism which seems to be popular with leftists. Notice all the comments about the "Rothchilds". You people need to get jobs and be productive. This is why Europe is failing. It cannot compete because Europeans are lazy. It has nothing to do with shadowy figures.

[@evildrome]

Cui bono?

[@NoMoreVoxPops]

@evildrome Start in the City of London...

[@soyboymotivation]

....follow the money>>>>> ✡️ Rothchilds and thier ilk who recide in the City of London at the New Court address.

[@MrPetr74125]

BoE did tell the truth and published it on their website in 2014!!!! However without the great publicity. Look for ''Money creation in the modern economy'' quarterly-bulletin/2014

[@Paul-dorsetuk]

excellent thank you Richard

[@Dave68Goliath]

The Bank of England is a private company in a separate state.

[@misst.e.a.187]

Yes, the City of London, which is independent.

[@geoffreyburton2654]

You never stop learning, thank you.

[@d0palwh56]

Really interesting, thanks Richard 👍

[@ultramarine0123]

The bank of England also engineered the removal of lis Truss' government because she didn't follow that assumption

[@gilesleggett]

it was Mayer Amschel Rothschild who said ' give me control of a nations currency (*NOT money btw) and i care not who makes it's laws'. do your homework

[@MaureenDunn-g1n]

Thanks, Richard. It's the same Down Under; I believe most politicians don't actually know that the banks fund the govt not taxes. We are sick of their austerity citing 'not enough money'

[@antonyjh1234]

"Bank" not banks, the RBA, the banks fund us. It's unsettling to realise that debt is created at around 4 cents per hundred dollars to create and we pay it back with our lives, full value. Edit I suppose we fund them with money borrowed from commercial banks, to pay their borrowings, half our life's work efforts go towards the govt through income, fuel, gst "taxes" just to take money out of the system, instead of making our lives easier by doing less, absolutely crazy system.but we have to understand "they" have been trading thousands of years with money and promissory notes and we were born into a debt based system thinking money is valuable without understanding it is just banker debt. Can you imagine any Australian politician coming out and truly explaining money, it makes me think business interests need the dumbest people at the "top"

[@andrewwalsh3744]

All western central banks are private. This is why they keep going after Russia.

[@fulloftruthguardian5420]

No they don't fund them they lend them money. It's a bit different.

[@antonyjh1234]

@@fulloftruthguardian5420 If I fund you money am I lending it to you?

[@MrPetr74125]

@@antonyjh1234 Money are valuable, because they measure value in GDP part of the economy. In other word, money are underwritten by peoples work creating goods and services traded in the economy.

[@user-gl9iz1bp1r]

“The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.” ~ Lord Action

[@tomjones5338]

The Rothchild bank of England

[@mickgee1661]

I've heard they are the largest shareholders.

[@DewtbArenatsiz]

David lammy is great friends with them

[@eddiexxxx]

--+ Rothschild... means Red Shield in German! They also own The Federal Reserve in America, which is neither federal nor a reserve, it is a foreign owned private bank. These are the people who tell the Pollies what to do!-

[@TheJase8566]

Just grow a spine and say what you actually mean

[@Arbitrary-z6j]

@@TheJase8566 Exactly. This is how antisemitism happens. Leftists never learn, or don't care, about history.

[@SeanConnell-x8k]

I think they don't tell the truth because they don't want the value of their contribution to society reevaluated, showing that the remuneration they receive for their labours should be significantly less.

[@jamesbarbour8400]

As is the case for our Politicians - they definitely don't represent good value for money !

[@Car-guy307]

Some BoE operations come under the official secrets act and resides in the City of London square mile which is a private corporation and not part of the UK !

[@soyboymotivation]

Two Londons by the Black pigeon speaks has a great video on this issue 🧠

[@SuperMickyChow]

Answer: Because it doesn't serve their interests to do so

[@samuilplamenov4749]

The BoE is a public company, meaning that it's owned by the "public", and by "public" they mean only by shareholders in a nominees list. They obfuscate who really owns it like that. It doesn't matter. It's just a company, not a government body. Therefore we are being ruled by an elite class of wealthy individuals hiding behind company names.

[@MG-el4iz]

BoE is also in the coty of london away from uk or eu jurisdiction.

[@notsosuavemate]

Because they are corrupt

[@safirahmed]

The richest don't want the people to become independent through a fair economic system as this means the wealthiest will lose control over the people and mean a massive increase in population.

[@dotpeat1372]

Excellent upload. It also explains the additional definition of tax, theft, as one can only thieving if something, the money, jewels etc., is already present, created before. Tks!

[@bassplayer3974]

The illusion of wealth

[@kensurrency2564]

To tell the truth about banking would be to expose the game.

[@gordonwilson1631]

Another vital video. Loans create deposits. The Bank of England Q1 2014 Bulletin two articles on “Money Creation in the Modern Economy” explain where money comes from. This lying gives government a very bad name. The game is to maintain the status quo, the Establishment and the whole class system.

[@timkelly5602]

That report fails to mention that the Treasury is the backing for new money creation, pretty essential ommision...

[@fgoindarkg]

The Bank of Canada says that 96% of currency is privately created, i.e. checks, loans, direct deposit etc. Only 4% is banknotes, which are actually promissory notes, just like cheques. The U.S. Constitution says only silver and gold are "money".

[@Marek-o3u]

I'm impressed you imagine most politicians could grasp it. Or the electorate.

[@SarahWalker-Smith]

I recently tried to explain to someone on social media that tax was an inflation control not the means of government spending . Laughing emojis followed !

[@Marek-o3u]

@SarahWalker-Smith I've given up trying to explain that things don't cost more, just money is worth less. Seems like quantum physics or something. I wish I'd understood 50 years ago. It took me 30 to understand inflation tbh. I imagine because it isn't desirable to know. The concept of money is a little slippery I guess.

[@wumi2419]

​@@maximuspennyweatherthe need to repay loans. If all the money was loaned out at 4%, you need 4% more money to pay the banks. So total amount of money has to increase by 4%. Which is achieved via printing money and then exchanging goods using international trade so that inflation happens somewhere else (wonders of currency courses). You can't export all inflation, but a lot of it.

[@SarahWalker-Smith]

@@maximuspennyweather I think 400 - 800 billion pounds ( depending who you ask) of government money creation during the pandemic and presumably the lack of goods it was chasing - supply chain shocks thereafter. That was a pretty unusual event .

[@wumi2419]

@@maximuspennyweather or they can up their prices/reduce amount per unit, aka shrinkflation.

[@matthewcox413]

Well that was six minutes I'll never get back. Thanks for repeating the question half a dozen times without trying to answer it

[@grantbeerling4396]

It goes further than just public spending. The myth supports the bond market, which has to 'lend' to the government and, therefore, the interest rates it gains or loses due to government 'borrowing' are affected, which in turn affects the part of pensions and savings in people's pension portfolios ( and other corp portfolios). However, the Bank of England sets the interest rates that the bond market bids to get close to. Unnecessary leverage means the government are subservient to unelected banks, investment corps, etc. This will only change if the gold standard process is extracted from a fiat currency reality. I quote/reference the Bank of England Q1 2014 report constantly. Really excellent video today! I'm still learning, and thanks.

[@blackbulldog4897]

@@grantbeerling4396 the BofE is subservient to govt. It's all political choice.

[@WarrenPeaceOG]

I've had "Banks are not intermediaries" on my phone since it was published😹

[@blackbulldog4897]

@@WarrenPeaceOG banks provide liquidity.

[@andybrice2711]

This is why I think it's short-sighted for Left-wingers to accept the simplistic narrative that Liz Truss "crashed the economy". I'm no fan of her fiscal policy. But we ought to be more skeptical of the assumption that the bond market accurately reflects the economy. And that governments should be beholden to such markets, or to supposedly neutral institutions such as the BofE or OBR.

[@andybrice2711]

​@@blackbulldog4897 I'm not so sure about that. I think Liz Truss' very brief tenure shows that the BofE will steadfastly pursue its own agenda, even if the Prime Minister opposes them. Perhaps that was a good thing in the case of the unelected Truss' and her radical and questionable fiscal policies. But it does make me wonder whether we should have a central bank with so little democratic accountability.

[@ellentewkesbury5936]

Very illuminating. Thank you.

[@roymillsjnr5172]

True Richard ,always learning even at my age

[@Eptor7Gd]

We the ppl are still bailing out commercial banks via the BoE Asset Purchase Facility Fund Ltd were we are paying off commercial banks bad QE loans.£22Bn in Interest alone on £230Bn to 2032.So lied to since 2008 that No Bail Outs wud ever happen again.

[@NeilStrachan-d9j]

Why do they engage in this conspiracy is the question. What is the economic advantage of increasing the poverty of the majority of our citizens. Labour are simply economically illiterate, Installing a pretend economist as Chancellor is disasterous & following tory dogma is destructive. So why do they conspire?

[@fgoindarkg]

T. Jefferson noted how inflation and deflation are used to transfer wealth from workers to rulers.

[@denisburgess2966]

They don't want us to know the truth shame on them.

[@frankcooper6118]

The whole history of money/currency is a history of sharp practices and sometimes criminality. The level of deceit within the entire financial system, ably assisted by their acountants and lawyers is staggering and much of the behavoiur, if engaged in by ordinary people, would result in jail. The lack of transparency about government finances and the constant sleight of hand makes a properly functioning democracy impossible. CPI for instance is not a great measure of the real impact of inflation on the poorest in our society and it is constantly manipulated and tweaked, yet it is invariably used interchangeably with 'inflation' by government and the media.

[@ollie2054]

The question I would like to ask is: If every country owes so many trillions of dollars debt, then who do we owe it to? Surly a country should be able to name the company or individuals that it owes money to? Or are they just making it all up? Money just a means of controlling the serfs.

[@ogasi1798]

Because they are filthy liars, it's not even a question

[@roshanmathew9443]

This is called fake currency ❤❤❤❤❤❤❤

[@aapje]

Spending without taxation will result in massive inflation, which effectively is just a (very destructive) form of taxation anyway.

[@jimbo4375]

The big things often don't even get a mention, they'd rather have a furious debate about a relatively tiny current matter that will be of no consequence by next week

[@ltmund]

Im not following. If the government claims it cant increase spending because it doesn't receive enough tax, whats the difference between creating the money and then needing to tax to pay for it? They still need to inceasr taxes either way by an equal amount. Therefore, they still dont have enough tax money for the spending.

[@warfish0r]

Exactly. What would be the consequence if everyone talked about it the other way around? Other than confusing people?

[@kevbrown2532]

They don't tax to pay for the creation of money. As Richard mentioned, they tax to deal with the consequences. Those consequences, depend on how much money is actually circulating (being used and moving through the economy). If there is too much money in circulation inflation can increase, tax removes excess money from circulation thereby controlling inflation.

[@ltmund]

@@kevbrown2532 OK, so the theory is that the money created will repay itself via the growth it creates? That tax receipts will increase, not because of an increase in taxes, but from the increase in taxable activity? Is that correct?

[@ThomasVWorm]

​​@@kevbrown2532this is wrong. Money is a bookkeeping system of debt. The debt does not origin in borrowing from the bank. After borrowing your net debt is still zero: you owe 100 and got 100. You are in debt after you did spend 100, since now you owe to who was paid with the money to take back the money and sell for it too. So the government needs debtors in order to be able to spend. The debtors are created by demanding taxes. So the order is like this: 1. demanding taxes 2. create money 3. spend the money 4. recollect the money from the taxpayer 5. destroy the money 6. goto 1 Step 1 is putting the taxpayer into the same situation as if he borrowed money from a bank and did spend it. He now must get the money back and create a supply, which he can sell. So the taxpayer must include government spending in how he makes use of his resources - he can only spend the net income for himself. This way, inflation is avoided. Without step 1, the population can ignore the money of the government at all, making the government unable to spend.

[@kevbrown2532]

@ltmund created money doesn't have to repay itself as it's new money. It's not a loan as such other than on a spreadsheet as it has to be accounted for somewhere. As its created by the BoE for the government it appears as an asset at the BoE and as a liability (loan) at the Treasury. But that is just an administrative record of that money. As BoE is effectively a sub department of the Treasury it's the equivalent of your right hand borrowing from your left. It's a loan in name only.

[@MSinclaire]

thank you!

[@WarrenPeaceOG]

The aristocracy has a man behind a curtain, operating the projector that shows there's no more gruel for Oliver

[@samuelmoffat2874]

Thank you Richard Ive followed you since your preseence on the Pileus Pod Cast. If Loanable funds existed then by extension tax payers would fund government because by logical extention all citizens would be sitting upon endless funds ready for the pesky government to aquire, so...wouldnt hyper inflation already happened a long time ago and therefore no government. Once MMT gets out of the bag everything makes sense.

[@charles-mr4oz]

Question: If the money creation comes first and then tax revenues are the tool used to balance the treasury books and hit inflation targets. What real difference does government spending make to individuals ? I may want to see government spending on essential things like public services and infrastructure but whether or not taxation comes first to allow for that spending or secondly to balance books and prevent runaway inflation is it not the same for fred blogs in that to have the public services he wants, he still must accept higher taxation ? If so does it not still come down to who it is that pays that tax.

[@physiocrat7143]

Wrong sort of tax system. It has sent the economy into a slow motion death spiral starting in 1945.

[@jeff__w]

The two situations are not equivalent in terms of tax. If taxation comes first to allow for the spending, spending by the government is revenue-constrained and we’re in the classic “Where are we going to find the money?” situation. We _have_ to tax in order to spend, unless we want to “deficit spend,” which is “bad.” If taxation and spending are unlinked and spending by the government is only inflation-constrained, that opens up the “fiscal space” and the government can spend up until it hits some inflation target-although, ideally, the government spending would account for and head off inflation. Taxation then becomes one tool (out of many) to help fight inflation (although it has other uses as well).

[@Durnyful]

​@jeff__w Why has inflation been v high while services have dismissed?

[@jeff__w]

@@Durnyful Overall, inflation in Europe and in the UK has not been the result of government spending but of supply chain disruptions, mostly in energy arising from the war in Ukraine.

[@physiocrat7143]

@jeff__w Official money is created as it is spent and passes into circulation. The purpose of tax is to complete the cycle by withdrawing it. Unfortunately, most tax systems give rise to massive costs and losses. These have taken economies into a death spiral.

[@davidgleeson9225]

Brilliant concise and very informative

[@taipizzalord4463]

Any university still teaching loanable funds theory should be shut down.

[@dsmith657]

That means all University would be shut down. According to Steve Keen they all teach loanable funds

[@Oligodendrocyte139]

Err, you might want to refine that statement....

[@DewtbArenatsiz]

*temples of marxism

[@regsanday137]

Loanable funds theory is the prevailing dogma of many govt’s and CBs around the world

[@vihodanyet]

That’s basically every Univeristy lol. An economics degree at all the top Unis is basically an indoctrination of fantasy land propaganda

[@BrandOdyssey]

Devastating. At last. Someone who understands something.

[@michaelmayo3127]

It would be more interesting to know, why they aren't telling et the truth!!

[@helenheenan3447]

Cui bono? Who benefits?

[@kevinsyd2012]

How do you know it's the truth? Just because Prof Murphy says it it?

[@DewtbArenatsiz]

​@@kevinsyd2012because its the only thing that explains the terror our politicians show when they talk about israel

[@martynholden3478]

​@kevinsyd2012 the proof is in the name of the system, The DEBT based monetary system all currency is DEBT somewhere in the system

[@ianpuddick]

US is doing really well with this ‘model’ $34 Trillion and growing

[@imbonkers3629]

$36 trillion 😮

[@sailawayteam]

Maybe it would be good if you tried to answer your own question, just as an excercise. When the budget is made, the taxes are written in to balance the spending (to a certain extent at least). I don't know why anyone in government would deny this, as taxes _do_ come after spending even in government practice. The "taxpayers money" is just what is written in the budget - which may or may not (mostly not) come to realization - depending on many factors which are outside the grasp of the government or BOE. I wish you would take the discussion from this rather high and frankly simplistic level to a bit more substantial, since that's where it gets difficult. I mean we are here to learn, right? I would like to see a discussion (not a debate) in good faith with you and someone who could push back on your ideas a little bit, just to get a bit more rounded view on the problem.

[@physiocrat7143]

The tax system as we know it today is an engine of destruction.

[@blackbulldog4897]

I'm not sure what you mean. Spending comes via the supply process, taxation is laid out in the finance bill.

[@sailawayteam]

​@@blackbulldog4897 Could you elaborate a bit more on the "spending comes via the supply process", what specifically is your point (now I'm not sure what you mean, and therefore don't know what your confusion is).

[@garethhumphries4039]

The conspiracy aspect, and whether the BoE independence should be revoked could be a meaningful discussion. The core premise here is MMT and that is just a description of how the economy works, there is no rational or empirical argument against it, it is just counting. Finding someone with an opposing view is essentially platforming a flat earther.

[@blackbulldog4897]

@sailawayteam maybe we are talking across each other. I'll try to elaborate. Govt spending and taxation are separate functions and they are not operationally dependent. All govt spending, except that which is saved (somewhere between 10 & 15%) is returned to govt via taxation.

[@elakarczewska9042]

I've heard it before from other sources.... it confirms what I've already thought was the case

[@franhaw3019Ireland]

Corrupt, comes to mind. ..

[@SarahWalker-Smith]

Thanks Richard- lightbulb moment .

[@thomasfoot3023]

"Give me control of a Nations money supply & I care not who commands her armies."

[@michellebyrom6551]

Said by the head of the banking family who funded both sides in Europe in WW2.

[@oakbellUK]

It's not an 'either/or, Richard. The deposits and loans are parts of the system. However, you can have money without loans. It's what happens in a cash-only economy.

[@fylbike]

This way, they can continue with the fallacy that a country's budget has to be run like a household's budget, which is what most people believe, allowing them to keep welfare low to please Daily Mail readers

[@DewtbArenatsiz]

​@@maximuspennyweatherif only newspapers were controlled by the ministry of truth, then all would be well

[@Yazz2014]

Excellent 👍🏻

[@badabing8884]

A conspiracy of silence.

[@MegaHaywire]

Thanks for educating me! I am learning important things from you!👍

[@highpath4776]

OBR , Bank of England and what about their full economic analysis of Brexit

[@DewtbArenatsiz]

The obr is full of career civil servants desperate to jump aboard the EU gravy train. All of their predictions are wrong

[@HuxtableTV]

These are very smart observations, albeit a little complex to follow for someone not too trained in finance. It has felt for a while that there is much uneasy problem with the system.

[@frederickfred2714]

If every government creates debt as money through the financial system it supports then every government can always pay its debt to the financial system..when it also monetises that debt the inflation of the currency moves out of the financial system into the wider community as a loss of buying power ..

[@GaryKennedy-g7p]

brilliant Channel .... well done

[@andielines]

JUST YES!!! Been saying it for years! This should be on mainstream news. When the penny finally drops, and the public realise that fourteen years (and still it continues) of austerity was no more than economically illiterate dogma, buy shares in pitch forks and flaming torches.

[@antonyjh1234]

And then what?

[@andielines]

@@antonyjh1234 Think it through, mate. I was alluding to the fact some people may, quite rightly, feel a little bit miffed.

[@715andy715]

Great video and something I've been thinking about too. As someone who works in accounting myself, its never sat right with me either. I might be wrong but an idea I've been playing with is that, in much the same way that gold was in the gold standard days, the underlying asset for fiat money is literally human labour, owed to a bank. The credit netting off against the debit on the banks balance sheet has come from something taking place in the outside world, despite what some would have us beleive and there's only one possible middle bit. The value of money can't be money, itself. We don't create it as if that were the case either. The value of money the bank is allowed to create for you is judged on the value of human labour you have the rights too, be it your own or someone else's. I have more arguments but its KZbin. The problem is, looking at it that way, we've all been buried under a pile of debt that our children's great grandchildren won't be able to work off. Maybe someone else can think about it too, is all. Even if it turns out to be wrong, its the only thing I see making sense. Its even worse.

[@alphaomega1089]

Yes, based on labour. Yes, banks keep ledgers. Yes, governments have tapped into this pool. Yes to debt management for future generations. Every government is indebted to its shareholders (taxpayers). We can only vote to remove them from the board of directors, yet have no say on the policies shaping society. I can excuse banks, not governments. We allow them to gamble (play executor) in our name. Our fault.

[@715andy715]

@alphaomega1089 if it really bothers you, instead of calling it "tax" call it "profit" (for the government) instead. Apparently, thats all it takes to fool you.

[@alphaomega1089]

​@@715andy715 governments are meant to operate on a non-profit bases. These organisations seek donations. They don't impose a tariff or levy or some other taxation measure to enforce your contribution. I don't have to spend with McDonald's or Walmart. I don't have to deposit with, or accept a loan from, any high street bank. The world of business is innocent. Religious orders like governments - who are even worse than those with imaginary gods - dare claim own you. Who is the fool: seeking a bank loan or a government handout?

[@thpark8189]

Even if this were true, the shortfall in tax received vs funds spent by government just shows how inefficient government is.

[@WarrenPeaceOG]

What you are describing is the money supply

[@jamesbarbour8400]

Particularly Whitehall - a complete money pit and not fit for purpose !

[@forbesb8125]

The trouble is we (UK people/politicians) have no control over the Bank of England because its not in England, its in its own City state, with its own laws therefore its employees dont answer to the people of the UK and they are immune from prosecution by the UK courts.

[@Frygon]

True, but if money printer goes brrr, then inflation goes 🔥

[@Marek-o3u]

@@Frygon depends partly on where the money goes. I think our government used it to buy back bonds or some paper thing. Not invested in production.

[@WarrenPeaceOG]

Also, if US decrees sanctions on Europe's energy supplier, inflation goes 💥

[@VinOptimaxxx]

Exactly. This video only tells half the story. It is technically true that the govt and BoE could just print money to fund public spending, but we'd all pay in other ways. You can print money but not value.

[@Marek-o3u]

@@VinOptimaxxx i think they already do....

[@themrmarshallmathers]

@@Marek-o3u If growth is greater than the rate of money creation, then it isn't inflationary

[@darthvader56]

Sir please write an extensive book on the financial knowledge you have not just about finance but something that spans the financial system of UK and also USA. Please sir. It will be a great service to mankind and I volunteer to help you with anything you need in the process. I really enjoy watching your videos.

[@dougselby7592]

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." - Some Fascist

[@sufyanaliyu7212]

Amazing content 🎉🎁

[@MrMigido]

They have always told untruths.

[@Truth_above_everything]

Totally agree with you Richard