Money As Debt

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IrvineRenter_IHB

IrvineRenter_IHB

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<a href="http://video.google.com/videoplay?docid=-9050474362583451279" linkindex="98" set="yes">Money As Debt</a>





With all the discussion of the FED and interest rates, many of you might find the video link above interesting. It describes how money is created.
 
<p>Lending money really is a racket.... You're either very small or you're very, very big. Although I think a bank with solid returns, no nonsense investing and GOOD ETHICS would do very well. </p>

<p>good luck</p>

<p>-bix</p>

<p> </p>

<p>p.s. in my opinon, all curreny is debt, its really an IOU issued from specific govt. Unless it is something like gold...</p>
 
<p>IR:</p>

<p>Good find! Very thought provoking video. Makes me want to buy more gold and silver! </p>

<p>If I had to do over again, would definitely have chosen a career in banking. </p>

<p> </p>
 
<p>Indeed, a very thought-provoking clip. I had no idea that most of the money created is by debt.</p>

<p>The video kind of implies that the banks have it easy by making all of this money. It may be no accident that "banker's hours" refers to an easy work schedule. But then again, I imagine it takes a lot of work to make the lending happen and I'm sure a lot of folks who have careers in banking spend a lot of time at work, like any other professional who wants to excel.</p>
 
I. Am. Shocked.





This is literally the most educational thing I've read or watched in years.





I <strong>implore</strong> everyone that doesn't have an intimate knowledge of how our money system works to watch this video.





Thanks for the link IR.





P.S. awgee is officially NOT a nutter.
 
jw - Thanks, but my wife and those who know me best may disagree.<p>


I keep on trying to push a book which explains the backround, the workings of the Federal Reserve, the people, and their motivations. Here goes again:<p>


"The Creature from Jekyll Island" by G. Edward Griffin
 
awgee, this same book was the topic of a Slashdot article only yesterday: <a href="http://books.slashdot.org/books/07/09/26/1432203.shtml" target="_blank">http://books.slashdot.org/books/07/09/26/1432203.shtml</a>





I'm glad to hear you endorse it. It's on my list now :)
 
I looked for it on Amazon when you posted it originally and it seemed out of print. :(





Funny it was on /. I usually read /. every day but missed that yesterday.
 
jw - I think you are right. Here is the link to the outside vendors who have copies:<p>




http://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/0912986395/ref=pd_bbs_sr_1/102-6173127-4112117?ie=UTF8&s=books&qid=1190911655&sr=8-1
 
Is there anyone who thinks the CPI is a measure of either inflation or consumer price increases?<p>




http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2SUCQ3Bslk0
 
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.

-- Henry Ford, Founder of Ford Motor Company
 
did anyone click on the link on the video's webpage though? <a href="http://www.socialistworld.net/" target="_blank" style="color: green;">www.socialistworld.net</a>


we dont want your pinko propaganda here, IR! j/k





speaking of all this debt money though, has anyone seen just how much of it is held by japan and china alone? what happens as the dollar continues to weaken and other countries start dumping us bonds?


http://www.ustreas.gov/tic/mfh.txt
 
acpme - That is the question most ask, but I think that what most don't realize is that the majority of treasury notes held by China are short term, three month, notes. The Central Bank of China does not have to "dump" US paper in order to divest. All it has to do is redeem it's short term notes instead of rolling them over.
 
I wonder what would happen to China if they did that. If they suddenly stopped buying bonds they would be left with cash. If they left them as US dollars, they would be losing on the exchange rate and inflation. If they convert them back to Yuan, it would drive the value of the Yuan high relative to the dollar which would destroy their export business and take their economy with it. The only thing standing between them and a huge economic depression is continued buying to US bonds. Bernanke is making them the ultimate bag holder.
 
China has decreased it's bond buying in the last four months immensely. It is not just talk that they are diversifying out of the USD. The percentage of their GDP that is a result of exports to the US is decreasing rapidly and it is foolish and US egocentric to think they are dependent on our trade. They are using their cash to buy commodities, materials, and commodity related companies worldwide. I will try to get the exact figures on their decrease in bond buying.
 
<em>“The gap between future US receipts and future US government obligations now totals $65.9 trillion, a sum that is impossible for the US to reconcile, which means the US is now technically bankrupt.”</em> St Louis Federal Reserve <em>Review</em> July/August issue 2006Professor Laurence Kotlikoff
 
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