4
4
0
If you do not understand our economic system, or even if you think you have a pretty good handle on it, watch this. If it doesn't enrage and scare the heck out of you, you are more jaded than I.
It also explains the lie about the "Debt Ceiling" and why it will always be raised (at 11:15 of the video).
It also explains the lie about the "Debt Ceiling" and why it will always be raised (at 11:15 of the video).
Economy
Money
Fraud
Edited >1 y ago
Posted >1 y ago
Responses: 2
1
1
0
The video is very misleading in several respects and probably would need a two to three page rebuttal at minimum. Currency supply is managed by the Fed based on Economic need via the open market discount window. Currency supply is not left to float based on whim as the video implies. Further each country in the world has a balance sheet more or less in which the amount of debt it carries is evaluated against. Cash flow is one criteria for borrowing as you need to be able to pay interest on your debt. However, like any household or business the physical assets if the country (taxable property worth, national resources, etc) also play a role. Currently US assets in the asset column are well North of 80 Trillion dollars. Our cash flow (ie tax revenue) vs debt interest is a concern but we have for the moment slowed the growth of our National debt. We are not doubling it every 8 years as was the case during the Obama administration. The Federal Reserve was formed because prior to it.....the Economy was tiny enough that a few billionaires could band together and provide stimulus or counter a bank panic. Towards the end of the 1800s the economy grew larger and larger and it became clearer that no longer could it be managed by a few wealthy indivuduals. In fact if you look at the 1929 crash the wealthy folks that tried to help like Samuel Insull.....lost everything and nearly died penniless. So we have a group of private banks called the Federal Reserve that manages the economy now via controls on the money supply because the size of the Economy is too large to be managed by any other means.
(1)
(0)
MAJ (Join to see)
I'm no fan of the federal reserve and prefer Darwinian capitalism, if your company makes poor decisions the shareholders should lose their assets. I agree that most of the article is very misleading. Going into debt for investments is always a good thing provided the investment is sound. Going into debt for expenses is where the debt outweighs the monetary supply. If the current relending of currency were to be prohibited that means you would not be able to build a house unless you had the money to pay for it in advance, same thing with a car or an education, the results to the economy and human life would be catastrophic.
But they have a very good point about the federal reserve and its hegemony of investors making the key decisions and receiving profit from it.
But they have a very good point about the federal reserve and its hegemony of investors making the key decisions and receiving profit from it.
(1)
(0)
SPC Erich Guenther
Agree mostly but any profits from the Fed are turned over to the Treasury at the end of the year. Additionally, folks here might not know this but Army DFAS could not function without the Fed processing its payments and reciepts to the Treasury. Same with all branches of DoD.
(0)
(0)
0
0
0
SSG(P) (Join to see)
The same thing we do about Congresspeople who have been in Congress for too many decades....
(0)
(0)
MAJ (Join to see)
The problem is we need to stop spending more money then we tax. As far as banks and your savings deposit. That is the power in banks, there would be no reason to keep your money in your own individual vault, it's far better for the bank to loan it out to people so houses are build, businesses can take out loans and our economy can function. If the bank were to secure or "not steal" your money as the video so erroneously claims, you would have to pay the bank to guard your money, the way it works now is the bank pays me for my deposits. Not very much in interest if the bank can't guarantee that I won't just take it all out again, but significantly more interest if the bank knows they can invest it securely through a bond. Their analysis misses the fact that each time money is relent and reinvested individuals pay interest on those loans and they purchase items with what is lent, it's called circulation every item purchased or investments made with that loaned money stimulates the economy more than offsetting the inflation rates cause by the excess of money supply. Hence why we don't have hyper inflation. The system is not impossible but a reasonable solution to economic problems, without money supply the economy cannot function on a loan basis, meaning you need to pay for your house before you can build one, there is significant improvement in human existence by going into debt to pay for investments, things like cars, homes, roads, ports, etc. But they are correct on the federal reserve, any agency that is exempt from audit is a problem.
Many aspects of this video are highly inflammatory and ignorant of basic economics, but the main point is don't spend more money then you receive.
Many aspects of this video are highly inflammatory and ignorant of basic economics, but the main point is don't spend more money then you receive.
(0)
(0)
Read This Next
Continue with Facebook 
Continue with Google