Anonymous: /f/ has enough problems with this. (July 8, 2013, 6:41 pm)

LadyLux: So, is he basically saying, that there are more loans than money? (July 9, 2013, 1:21 am)

anon: What problems does /f/ have with this? (July 9, 2013, 2:15 am)

PenZon: There is somewhere in the region of 20 times more debt than there is money on the planet. A financial value system detached from any sort of common value (one money is this much gold, now and always) is doomed to fail due to greed, because for some people nothing is enough. With the current system, we are going to have a global economic crash. And a huge one. It´s merely a question of time. (July 9, 2013, 11:34 am)

Matt: #RONPAUL2016 (July 10, 2013, 3:32 am)

LordJebe: ZGM \o/ (July 10, 2013, 9:36 am)

Anonymus: WARNING! This comment is quite long, and proves this video wrong in detail. If you cannot read, you believe everything a calm voice says to you, and you cannot do basic math, don't read on. To the rest of you, here are my 2 cents: Moderate inflation is actually very good. Japan is in an economic recession since decades because their money does not inflate! Think about it: dollar starts to get stronger (opposite of inflation, called deflation). What would your company do? It would decrease your salary, because everything would be cheaper. Your productivity would go down, because you would lose your incentive to work better. Hence slow economic downfall. Yes, 1 dollar 90 years ago worth 20 dollars now. But salaries were fractions of the current salaries. Population were fraction of the current population. Economy was fraction if current economy. Moderate inflation is healthy sign of the economy growing. The rest of the this "educational" program about banks are straight-out lies. "If every debt would be payed, there would be not a single dollar." Lie: it would be the same amount of money. Borrow a dollar from your friend. Now pay it back. Does it still exits? Yes. "Every deposit creates 9 times of loans of its original value." Lie. Banks are not very different from any other business. People deposit money to the banks. The bank pays interest for that. If that's what the bank would only do, it would go out of business shortly. So the bank loans the money, but on a higher interest rate. Go on,check your bank's website for deposit and loan rates, I'll wait.. So what is this 9 times bullshit? That is the reserve rate, which stated by the law. The bank tries to make profit, so it will try to loan the money that was just deposited. Bill deposits money, and this money is loaned to Jill. Because Jill pays higher interest rates to the bank, than the interest rate the bank pays to Bill, the bank makes profit. But people sometimes want they deposited money back. If all the money would be in loans, the bank would not be able to pay them, because all the money is already out in loans. Yes, the same amount of money. So the banks are not allowed by law to loan all the money, they have to keep a part of them. It is usually around 10%. This is the reserve. The reserve + loans = deposits. Not 9 times deposits. (It is a little tricky when the bank gets a loan from another bank to loan it again, so this equation might not be 100% true, but it is a special case, and has nothing to do with the 9 times bullshit. Check this for more info: http://en.wikipedia.org/wiki/Loan-deposit_ratio). This reserve is often confused (in this case deliberately) with all the deposits that has been made to the bank. Interest: This chapter is based on the previous lies, so it is really difficult to understand what it wants to stay. "All money is borrowed from the central bank." No. Banks can borrow money from the Central bank, but this is just as a last resort. Read this 7 bulletin points: https://en.wikipedia.org/wiki/Central_bank#Activities_and_responsibilities. Without loans you wouldn't be able to start a company, unless your family is really wealthy. Sounds familiar? Yes, because it was like that in the middle ages! Do you want that? "And it is expanded by commercial banks". Lie, I've already explained it. "Where is the money for the interest that is charged?" In the bank, of course. If you borrow from your bank 100000$ to build a house, a new house is built from that money. You've also paid for the building materials, the seller of these made profit on them. He stores the profit in a bank of course, or paying back his own debts. How you have the money to pay your house loan back with interest? You have a job, where you create value, so your boss, or your customers are paying you money. The bank sees you as an investment, that's why they are very carefully examine your financial situation before they lend you money. (If they don't do that, than you will have a 2008 crisis again... So yeah, you can blame greedy bankers for trouble, I agree. You can blame shitty engineers too, when a bridge collapses. If you give 100000 dollars for a homeless guy, you will never see your money again, and you cannot pay the interest after your deposits, hence bank crash.) So you create value with the money borrowed from the bank, and you can pay back the loan and interest. Another example: Bill is an artist, but has no money and has no art supplies. Jill lends him 50 bucks, and makes him promise to pay back 55 in a month (5 bucks interest). Bill buys canvas and paint, and paints a beautiful picture. He sells it to Carl for a 100 bucks. He pays back Jill 55 bucks. Carl has a grocery store, both Jill and Bill goes there for their groceries. That is the (very simplified) circulation of the money, where value is created, and money is exchanged. If you don't have Jill (the bank), Bill would starve to death, Carl would have one less customer. Carl would have more money in the short run (no 100$ picture), but his regular income would be less (no Bill buying stuff from him). He also wouldn't have the picture, which holds value for him. The only true in this video is that if you print money, the currency will inflate. That's why they very careful when they do that (oh, and they do that since money exists). It needs to be done in a way so that it accelerate the economy faster than the inflation of the currency. If governments and central banks do it right, they gain more than what they lose on the degradation of the money. (July 11, 2013, 9:57 pm)

Anonmen: #7 You overlook one simple fact. Wages of the working class are almost never raised. You claim that a deflation of the currency would have workers get payed less. You seem to assume that there is a direct opposite to that (inflation causes wages to increase to even the odds) but it does not exist. Corporations try their darndest to keep wages low to maximise profits because they figured out that saving money is easier to make profit than increasing productivity and sales. In other words, inflation will always cause the buypower of the workers to decrease, since wages aren't raised. This is called a null-round. It's the reason why strikes and protests to get wages increased are a daily occurance in virtually all sectors of business. Further, the video is right that money only exists due to debt. If all debt is payed off, it disappears, because money by itself is literally worth nothing. You give that "lend your friend a dollar" example. Well yes, if your friend than pays the dollar back, his debt is payed and the dollar lost its purpose. This is where interest comes into play. Say the dollar the friend has to give back has an interest rate of a moderate two percent. I.e. his debt is actually $1,02. So without doing anything, you made a profit from nothing. You didn't work for it. What's worse about this, this is done in global scale. Where did the 2 Cents from the example come from anyway? Nowhere. You just produced money from thin air. The most devious part of this system however isn't interest. It's interest FOR interest. Say the interest rate of 2% is for a month. Now wait 6 months until your friend gives the dollar back. This means that in the end the money you get back is 102%^6, or $1,126162419264, or $1,127 by bank notation. You just made 12,7% profit without working for it, just waiting. Yes, this is completely legal. No the money still does not have any actual value to base it on. Yes you just created even more money from thin air. How can this money be made valueable? By decreasing existing money value, and thus we have inflation once more. So the endless loop continues. (July 12, 2013, 1:29 pm)

Anonymus: Hi Anonmen, its #7. In a middle of a crisis it is not a surprise, that there are lower salaries. If you see a few decades of salary statistics however, you see that salaries are increasing. (Again, in a long run.) Not raising the salaries of productive employees is bad practice for a company. These employees will leave the company, and get higher salaries in another company. (Don't forget: market dictates. It is not communism.) Nowadays, in a middle of a crisis, companies are going bankrupt, so often you cannot change company. Business owners tend to use this as an opportunity to f.ck over employees. Not good! But again: we are in a crisis now. I don't know your age, but before 2007 I'm pretty sure salary increase was a common practice. I still think that the "lend your friend a dollar" is a good example. If the money is paid back, that money can be used again: buy food, buy gas, lend again(!), put it in a bank and make money on it(!!), invest it. Why would it lose it's purpose? Oh, and an interest of 2% of a MONTH is not moderate, it is pretty damn high! I mean, mafia high! Laws are preventing credit institutes to lend money with such high interest rate. But actually this is just a side note, I want to reflect on your opinion about interests existing in the first place. First, ask yourself: if bank would make money "out of thin air", why there are many banks going bankrupt? But let's talk about interest. Say, your friend, Bill, want to borrow 1$. Okay, you say, but you give me 1.02$ at the end of the month. Yes, you've just made .02$ by simply waiting! Absolutely right! Was the 2 cents created out of thin air? Of course not! Bill pays it back, using his own resources (he gets salary, he owns a business, etc...). The money is not created out of thin air, Bill earned it, and then gave it to you. If Bill went bankrupt, he wont pay your dollar back, not even the 2 cents interest. But why to set interest on the dollar in the first place, you ask? Well, between friends, asking for 2% interest in a month is pretty bad thing to do, Bill shouldn't be your friend :). You have your own business, making money, so you don't need that 2 cents anyway. BUT if you are a bank, this is the only thing you do for a profit. You lend money. If you don't ask for interest, you will go bankrupt shortly, you cannot even pay your employees. And why do you think the interest does not has value? Let's say you are a bank in the 1970s. A strange guy named Bill Gates goes into your bank office, and ask for 100.000$. He is starting a company, called Microsoft. You never heard of it, but you think his business model looks good. You lend him money for 15% interest a year. 5 years later the amount is 201.135$. Bill Gates pays you back, from the millions of dollars he owns now. He all started it from your first grand, and made more money than the interest. Is Bill Gate's money just a mirage? Created out of thin air? No, it was created with work. One more note: without interest, banks would go bankrupt. Without banks, where would you go to borrow money for your Microsoft? You would have to go to a few thousand individual, asking money from them, negotiate with them. The bank does that for you, he is not just "waiting", as your friend, who made 2 cents on you. The bank employs hundreds of people, handling your money, gathering deposits from hundreds of thousands of people, lend money to another few thousand, account everything, pays its bill, keep its office open for you, develop net banking service, market itself, invests. All this just to lend you money in the end, because that's where its profits are. Oh, and the bank also PAYS you interest, when you deposit money to the bank. Is that interest created out of thin air? No, it is created from the interest of the money they lent. That interest payed by Microsofts, Apples, Mom & Dad stores, and all they employees. For a company an employee is an investment. They pay me X salary, and I make them X * Y value. If Y > 1, the company makes profit. To sum up: no interest -> no banks -> and now you are in the 14th century. (July 12, 2013, 7:34 pm)

Anonymus: Oh, and one more thing, you gonna understand interest with this: If you borrow money, you are spending money you haven't earned, YET. Let's say, you want to start a business, and you need 50.000$ for it. But you need 10 years to gather that money. If you go to a bank, it will give you the money. With the interest you are paying for that 10 years! You DO get something for that extra interest money. It is time. you can start your business earlier. You can buy that very important 4K TV earlier ( :-/ ). Or anything. The bank also taking a risk giving you money, because it is not the bank's money. It is the money of the people who deposited there. Your neighbor's. Your parent's. The higher the risk, the higher the interest. It's business, steel cold, but business. (July 12, 2013, 7:50 pm)

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