money as debt

economists and some brave politicians recommend this video as a basic overview of how money is created. many educators and politicians have recommended it as part of a course to be offered in schools. it's a long one (47min 7sec), but it's very intriguing and it kept me watching through the whole thing.

"Money as Debt" by Paul Grignon:



if you get the basics of the video, you'll understand why our government making direct deposits to the banks is a good way to create a lot more money within our economy (for every loan and deposit, a bank is authorized to write about a 9:1 ratio of made up money to actual money (sometimes way more) x's the principle onto their books by the federal reserve ). banks lend money that they don't have. so, the limit that banks set to lend or even give out money is arbitrary. banks could be helping out the people a lot more. but the people's ignorance is allowing the banks to own us instead of us owning them.

the problem we're now experiencing is that the banks aren't passing on their increased surplus to the people. they should be offering more affordable loans, higher returns on interest rates, much larger cash incentives for referring new accounts, and freezing foreclosures. because of this failure, our economy will continue to grow worse as the banks continue to hoard a vast majority of our nation's and world's money. here's a simple model: putting more cash in the hands of the consumer puts more cash into the system. take cash out of the hands of the people in the form of high interest rates, and you take the cash out of the economy on a large scale. has anybody ever asked the question: "what is the point of the banks holding the world's money and doing nothing good with it but hoarding it?" how does that build roads, bridges, schools, and hospitals for example? it doesn't. the money just sits there while society suffers. we can change this. more of us just need to be educated on how our money system actually works. then we can help ourselves.

The Dow Takes
A Record Leap

The Dow industrials surged 936.42 points today, (Monday October 13th 2008), or 11%, to 9387.61 as global plans for governments to rescue banks through direct capital injections sent the index to its biggest one-day point gain ever.

money
money as debt
money is created from debt

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