Money as Debt - this is why there is a financial crisis

For those of you who may be mystified with current events in the finance market, and the looming recession, this video is essential.

What it will do is open you eyes to how the finance sector works. Its explained very clearly, and - honestly - is worth 47 minutes of your life to watch.

I'm posting it here because what it refers to is very very much a "current event"

Google Video Link

[edit on 25/0308/08 by neformore]

I started a thread on this a while back. It degenerated into a particualrly viscious debate between myself and a since discredited member, but may be of interest.

I have to say that I am glad to see it posted again. I think everyone needs to see this video at least once. If you use money, you have to see it, simple as that.

Take the time to watch it people. This is the root of all evil in the world today.

Very Informative!

I would venture to say it seems that this could be the root of any and all conspiracy, and ultimately gives us the answer to the old question "Who Are 'THEY'"?!?!

I completely agree with you here. The sad thing is that most people just don't want to hear it. They're happy sitting in their entertainment rooms, sipping wine or beer whilst the cycle continues.

It's a shame really that people don't care.

Instead of watching a video on YouTube, it might be better to read textbooks on micro and macroeconomics, as well as financial management and international finance, to learn "how the finance sector works."

[edit on 26-3-2008 by Riposte]

reply to post by neformore


A brilliant summary - the last ten minutes of which are the real money pot. Interesting points about Garfield and Lincoln towards the end... it really makes you think. It's easy to get lost in conspiracy theorys and find yourself on a dark path headed toward a dead end of nonsense. So you shrug it off, you laugh it off... but then little things like this crop up and get that right eye a'twitchin' again.

Were I to take the time to get all National Treasure on this... where would I start?

What was the primary reason for our battle of Independence? Can our society and economy and our gradual loss of constitutional rights be pinned on a witless Woodrow Wilson allowing ye' olde bank to regain control of its stakes in the new world? Were Lincoln and Garfield assassinated because they dug too deep and spoke too loudly of what they uncovered regarding the central banking system in England?

It seems ridiculous... but it kinda adds up.

If this was all, somehow, magically reversed, would that mean we would all have to become accustomed to simpler ways of lives? It's through the current banking system that I live my current life of luxury. Without my money as debt, I wouldn't own a new house, a new car, the computer on which I type this mental vomit. I probably wouldn't be able to buy the gas that got me to this job so that I could repay the interest and principal that got me all of that. So what does that mean for me? Drive a stake, cut down some trees, build a house, grow and raise my food, learn how to make candles out of beeswax?

Can the way we live really exist without all of this imaginary money? It's hard not to believe that we've achieved so many technical and medical advances though the use of borrowed debt... so if that stops... see where I'm going? Can we not only expect a decrease in advances but also a decrease in support of the existing supply?

Will we trade beads for electricity to power our Dells that we bought with bread dough?

It's nice to think that we would all come together and simple necessities of life would be provided simply because they are needed... but every person is greedy. Greed is, perhaps, the root and cause of everything we do. Don't get me wrong, it's not always for the worst; we love people because we want not to be alone, we subconsciously (and consciously) want to procreate. We want, want, want... and nobody will ever do anything for free. It's just that simple...

The system will crash. What will the aftermath look like?

edited for grammar.
again

[edit on 26-3-2008 by memoir]

[edit on 26-3-2008 by memoir]

Originally posted by memoir
The system will crash. What will the aftermath look like?

Iraq

The video won't work on my puter. What's the gist of it?

I had this video on my blog a few months ago, and I'm glad to see it getting attention here on ATS where more people will see it. We should all watch this video plus the ATS video In Debt We Trust. Together they really explain a lot.

The greed of some people is so insane it makes me sick.

There's something that's boggling my mind: Why won't the banks loan money to anyone asking for loan?

Since the money is created from thin air, for the bank there shouldn't be anything to lose in case the customer couldn't pay it back.

Originally posted by superface
The greed of some people is so insane it makes me sick.

There's something that's boggling my mind: Why won't the banks loan money to anyone asking for loan?

Since the money is created from thin air, for the bank there shouldn't be anything to lose in case the customer couldn't pay it back.

The banks only have 10% of the loan at stake. It's all about cash flow for everyone really. They have taken back so many homes now that it is enough to threaten thier 10% cash holdings. The banks are all scared that they are gonna run out of cash so they have stopped loaning out new money.

This is a complete 180 of what happened during the great depression when people panicked and ran to remove thier money from the bank before the bank disappeared. Now the banks are running to the other banks attempting to get thier money out of each others hands before they all disappear.

Hopefully the banks will all implode and they will disappear leaving the people in peace.

Then we can coin our own currency and start a real war.

[edit on 26-3-2008 by In nothing we trust]

Yea so listen everyone I have a MBA leaning alot toward financials, this video is somewhat correct but there is alot missing. This video lacks the knowledge of Bonds and federal backed notes. I would agree with another post take a class on mico and macro economics if you really would like to learn on how debt and credit works. I work in the Bond buisness and if you truly think that the banks go to the feds and they just give them money you are very mis informed. I would study a little on keynesian and neoclassical economics to truly understand this video since it really is a video that you could say resembles pre 1930 macro more along the lines of keynesian economics. So with all that said I am not trying to rain on your parade or debunk you just giving my own educated opinion. The video just lacks the education of modern macroeconomic policies envolved with fiscal and monetary policies.

reply to post by ohioguy646

...this video is somewhat correct but there is alot missing.

So in other words, it's true, just in a more complex way that no one can understand.

Originally posted by ohioguy646
Yea so listen everyone I have a MBA leaning alot toward financials,

So, what does your MBA have to say regarding this increasing trade imbalance, trade debt. How much of this worthless funny money can we keep printing and conning China-Mart and the OPEC nations into accepting for all that cool stuff we need to keep the party going . . . before they wise up to the con job we're pulling on them? What will happen when the world looses faith in the US dollar because we have nothing to offer in return for all those dollars except the bargain cheap land under our feet? When oil suddenly starts selling in Euros, what will become of the dollar and foreign trade deficit then? Surely the party will be over then, right?

reply to post by jackinthebox


I just spent the better part of an hour reading that thread Jack...OMG, I can't imagine what kind of vested interest it would take to go through that much trouble to prop up a defunct system. Sheesh. It was pretty entertaining for a while but got tiresome because of the "discredited" one. Anyway I was wondering if you had seen any other vids about the fed, there are several on google video.

Also I wanted to post a link to this vid and phone recording of George Green, he was a high roller in the world of finance for a long time and was actually invited into the inner circle, but declined (for good reason I might add) and now has spent some time trying to educate and help prepare people for the coming crash of the economy. Do give it a looksee, and Jack, I think I love you...

www.consciousmedianetwork.com...

www.consciousmedia.tv...

you may need to register with this site to get access to the video interviews but it's very worth it.

peace

Amazing video, and very informative. I knew parts of the story, but only suspected others, and did not some of the details.

I have watched our current crop of crisis with much interest, and have come to one conclusion: the powers that be are desperately trying to maintain the status quo. That applies be it the economic uncertainty/collapse, the oil and fuel problem, the trade imbalance, or a myriad of other situations. In every case, the attempts to correct the problem du jour appear to be aimed at protecting those who are heavily vested in the system under threat.

The part that made me think was when the video explained how the entire money/debt system was required to grow exponentially. That in itself explains a lot. It explains why, when people are having a hard time feeding their families, the current solutions only aim to increase debt and thereby increase the problem for those individuals. It also explains why the credit card offers stopped at one point (here I thought they finally had the idea I wasn't buying ) and just recently restarted.

One thing I remember clearly from my old economics class in school was a statement by the instructor. One of my classmates, a guy who I am sure now has a job with his name on his shirt out of necessity lest he forget it, mentioned some asinine desire of his to have 'all the money in the world'. The instructor countered with this explanation (paraphrased opver 30 years):

"If you had all the money in the world, you would have worthless paper. Money only has value as long as people want it, and if it were to become out of reach to everyone else, there would be a new form of money developed to replace yours."

Maybe that's why the bankers are running scared...?

EVERYONE, watch this video!

TheRedneck

reply to post by TheRedneck

Maybe that's why the bankers are running scared...?

Some bankers perhaps, but not the international banking elite. They take imaginary numbers on computers, called money, and turn it into real value by foreclosing. In other words, economic collapse is actually in their benefit. Once everyone can no longer pay, the money does become meaningless, true, but this also leaves the elites in control of everything that has real value. If the dollar collapses, the people will be left holding the emtpy bag, while the elites wind up with all of our real estate and natural resources. Not to mention complete domination of our precious labor force.

This is what happened in the Great Depression, and how the Constitution was suspended in 1933. In the most literal sense, you are now a slave, and have been your entire lives. Every American citizen became incorporated and is held as default payment to the receivers of the US bankruptcy in 1933.

Originally posted by jackinthebox
This is what happened in the Great Depression, and how the Constitution was suspended in 1933. In the most literal sense, you are now a slave, and have been your entire lives. Every American citizen became incorporated and is held as default payment to the receivers of the US bankruptcy in 1933.

Yup. And everyone is still doing that today too. This national debt that's being accumulated, this trade imbalance debt, who is everyone expecting to pay that off? You all gonna have that paid off before you die? All that cool stuff and social bennies and comfy compensations you all voted for yourselves, everyone is going to pay that off, your dinner tab on Earth, before leaving the diner, right?

Those homes everyone bought, hoping that would double in value every 10 years, who did you all expect would have to pay a million dollars for them 30 years later? (and the way they build homes today, will they even still be standing 30 years later? me don't thinks so, ha).

All those dollars, actually debt notes, slave certificates, you exchanged for oil so you could get over to the mall and buy that latest cool imported iToy using those same funny money IOUs, who's going to have to make good on them some day? Hey, ha, maybe you can sell your million dollar homes to them foreign debtholders when they come knocking on your doors.

The financial crises is caused all those IOUs floating around the world. Foreign debt. This is everyone's fault! The world is waking up to the con game that is being perpetrated on them by the once so-called richest nation in the world. You used cheap foreign slave labor once again to build your pretty empire nation, ha. Of course your threats of war, to protect national security interests of course, shuts many of them foreign nations up (nukes are worth every penny spent on them, huh? ha). But they won't allow this to go on forever. Eventually all the slaves will rise up and revolt, domestic and foreign. And this will happen when they begin to starve. That is how they always keep the slaves under control.

Debt is a suckers game. And look at how many suckers it has sucked in. Debt is like that apple on the tree that should have been left alone. Someone else is always left holding the bag. And now the dilemma is, who is going to honestly pay all that debt off? All of it, the foreign debt too? Or will chaos and mayhem have to breakout when that doesn't happen?

Originally posted by memoir
reply to post by neformore

 

If this was all, somehow, magically reversed, would that mean we would all have to become accustomed to simpler ways of lives? It's through the current banking system that I live my current life of luxury. Without my money as debt, I wouldn't own a new house, a new car, the computer on which I type this mental vomit. I probably wouldn't be able to buy the gas that got me to this job so that I could repay the interest and principal that got me all of that.

Nonsense. A host (the public) with parasites (the banks) is never as healthy as it would be without them.

You're attributing the prosperity you and the rest of humanity have earned for themselves to the banks, which have done nothing more than give you permission to create this prosperity, only to steal part of it away once you have done so. What have they done for you in return? Think hard.

You might say they have loaned you money that they could have used themselves, and for that they deserve the interest you pay. Again, nonsense. Why? IF YOUR DEPOSIT IS SAFE, THEN WHERE DO THEY GET THE MONEY TO LOAN OUT TO OTHER PEOPLE? The answer is that they created it. The evidence of all this created money can by found in figures of inflation. Not to mention the fact that ten times as much money is owed to banks than even exists. How could we be in debt an amount of dollars far in excess of what exists? Where are banks getting all this money? Again, banks create it.

Do you believe working years to pay back a loan on a house is a fair exchange for the simple effort required to write a check or type on a keyboard for a few minutes? It only takes a moment for a bank to loan you money, but it takes decades of work to “pay” them back.


“The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented." - Major L.B.Angus


The reason people believe banks are necessary for finance, is because we have no experience with any other system... not because there isn't a better way, but because the bankers won't allow it. They use every illegal and immoral tool available (having a lot of money helps) to conceal their scheme and perpetuate to the furthest degree this parasitic system.

Historically, the greatest periods of prosperity in America occurred when there were no central banks robbing the public blind and undermining society with their greed and corruption. We functioned until 1913 without the Federal Reserve... how can arguments continue to be made of its necessity if the founding of the greatest nation on earth happened without such a thing? Cannot a publicly accountable financial body operate to finance the publics large works without private billionaires profiting off of the system, and retaining the power to decide what gets financed and what does not?

Ask yourself... why is there always money for war, but never for peace? Why does the government always get what it wants, but the people never do? Money is the weapon, and we buy the lie hook, line, and sinker.

The Problem:

This is an attempt to state it simply, because if you to understand the problem, then you're going to be able to see the solution clearly too. If it doesn't make sense the first time you read it, try reading it again. Eventually, the whole picture will sink in...


A quick history of money

1) Once, gold and silver were considered the only “real” money, but it was heavy and risky to carry around...

2) So people paid goldsmiths to store the money, and got paper receipts for it...

3) After a while, people used the receipts like money, and left the gold in the bank most of the time. So the bankers got clever and came up with a scam...

4) The banks printed off receipts for more gold than they actually had, and “loaned” those receipts out to charge interest on it. They kept their fingers crossed hoping that not too many people would come in trying to redeem their receipts for real gold all at the same time. This let them make a lot of money charging interest, because they could charge interest on MONEY THEY DIDN'T HAVE.


An analogy can be made using property and titles. Here's the scam in another way:

Step 1: Acquire a vacation home.
Step 2: Sell the title to the home to one person.
Step 3: Sell the title to the home to ANOTHER person.
Step 4: Hope they both don't show up on the same weekend!


Fractional reserve banking lets a bank say to a depositor that all his money is safe and sound at the bank while at the same time they get to loan most of it out to someone else and charge interest on it. So there are two people with a legitimate claim to the same pile of money. (So whose is it, really?) After the loan is made, the depositor and borrower together have more money than existed before the loan. So where did the extra money come from? The answer: the banks CREATED it so they could loan it. Otherwise, the depositor's money would vanish.

It is important to remember that since money is no longer tangible stuff (like gold) but is instead represented by quantities written down as numbers (which could be written “one million” or “one billion” just as easily) accountability becomes vague, deceptive, and easily manipulated. It can be created and destroyed just by writing down different numbers, or modifying information stored in a computer.
(One wonders why the banks don't just create for themselves the money outright, and spend it as they please. The reason is that such a simple counterfeiting scheme would be detected by the public and immediately put to a stop. The illusion that banks are accountable and trustworthy with the public's money must be maintained for them to continue stealing.)

Considering all the interest being made on all these loans you see it is a very profitable scam. The interest charges allowed banks to gather up enormous amounts of gold which they bought with their paper money, and once most of the gold was siphoned from the public, they rewrote the laws so that the banks no longer had to carry any gold reserves at all! Since then the public has been using paper to back paper, trading nothing but titles to nonexistent property!



What's the result?

1) Almost every dollar that exists is owed to a bank somewhere, because at some time in history, it was created when it was loaned out.

2) Far more dollars are owed to banks (because of compound interest) than even exists! So as a country, we cannot possibly get out of debt under this system. It is important to recognize, however, that the bulk of our debt is in the form interest, which is an arbitrary amount of money banks demand in return, but never gave you. This raises questions of its legitimacy.

3) There is no money, in the real sense. Just checks, data stored on computers, and promises. It is all created by typing on a keyboard, and signing signatures. The only tangible assets in regard to money is the collateral we pledge when we ask for a loan. The money they loan you comes from nowhere, but the assets you lose in foreclosure are real!

4) Because the US government borrows from the Federal Reserve, bankers have the power to influence our society and government by controlling finance. They decide to create (or not create) money depending on who's asking, and for what. They choose what projects get funded, and let other needs wither on the vine by starving them of working capital. This subtle yet immense power is more than enough to undermine democracy, and guide the course of a nation's history.


What is the solution?

Simple. Money must not be created by loaning it into existence. It must be something that serves the public as a store of value, circulating permanently without being easily created from thin air or vanishing back into it. Otherwise many forms of abuse and deceit can work their way into the system, and a class of parasites will rise to power in society by cleverly disguising the fact that they create money from thin air.