Crash Course: Chapter 8 - The Fed & Money Creation by Chris Martenson

T0B0KKE Says:

Sep 30, 2011 - They don't. That's because debt is always greater than money in circulation. It's the old example of 100 people on an island with 10 shells each. They find out that 10 shells isn't enough to buy stuff, so they start to borrow 1 shell and in return pay 2. At the end of the year in the island reunion they count the debt and find out that every single person owes 20 shells and the total debt is 2000 shells, way above the total shell supply of 1000...

T0B0KKE Says:

Sep 30, 2011 - They don't. That's because debt is always greater than money in circulation. It's the old example of 100 people on an island with 10 shells each. They find out that 10 shells isn't enough to buy stuff, so they start to borrow 1 shell and in return pay 2. At the end of the year in the island reunion they count the debt and find out that every single person owes 20 shells and the total debt is 2000 shells, way above the total shell supply of 1000...

T0B0KKE Says:

Sep 30, 2011 - They don't. That's because debt is always greater than money in circulation. It's the old example of 100 people on an island with 10 shells each. They find out that 10 shells isn't enough to buy stuff, so they start to borrow 1 shell and in return pay 2. At the end of the year in the island reunion they count the debt and find out that every single person owes 20 shells and the total debt is 2000 shells, way above the total shell supply of 1000...

abhisheksuraj Says:

Oct 3, 2011 - Well, nice video. But, I disagree a bit on your statement that 'it is an exponential system by its very design'. That's because when the 'demand' in the economy is low, the total amount of money in the system will reduce as the banks wouldn't find enough customers (who would loan new money into existence), and hence they will return the money to the Fed and close their debt position.

amanvds Says:

Oct 17, 2011 - well abhishek how do u expect a decrease in demand by continues growing world population ... the increasing population will always put a stress on demand in one way or the other

mentorgratis Says:

Oct 26, 2011 - ok get it, Goverment has an outstanding debt for the next year, and it needs money to pay back. So the most probable scenario is borrowing money again, issuing more bonds, just in case goverment does not have money. But what happens if a responsible goverment saves and has surplus of money rather than a deficit, then they wouldn´t need print bonds to face its problems. No money creation from the government. Of course companies also issue debt and banks too, so that´s tricky isnt???

bangmeister Says:

Nov 4, 2011 - it was designed to collapse the US economy

christo930 Says:

Nov 18, 2011 - I hope someone can answer this question! If all money is loaned into existence, how can the gov inflate away the debt? It can only create money by issuing new debt, therefor doubling the money supply to devalue debt can't work, because it had to take a loan equivalent to the existing money supply to inflate the original debt away, but it now owes twice as much

abhisheksuraj Says:

Nov 24, 2011 - Well, that`s a wrong comparison. We are talking of 'loan money' and not 'food', whose demand will increase with the increasing population. Anyway, here are my two points on why demand will decrease - as the risk increases (home prices falling, banks crashing) and interest rates increase (money is costlier) demand for loans will come down. The reason why there is such a huge 'debt mountain' in the world, is that the interest rates were dirty low for a very long time - which is wrong.

303anzac Says:

Dec 13, 2011 - This isn't just in the US it is happing in every western country in the world.

ReviewsByErik Says:

Dec 14, 2011 - Damn, all this time I thought banks had to hold 90% in reserves and this video says 10% in reserves? That's insane! No wonder they're at risk for bank runs LOL

ReviewsByErik Says:

Dec 14, 2011 - Obviously the problem is that this system REQUIRES perpetual growth. That's a fatal flaw in itself. You can't have perpetual growth.

candistyx Says:

Jan 24, 2012 - How does the UK make it's money?

doc7474 Says:

Jan 27, 2012 - "May you live in interesting times" - Chinese curse

88roro11 Says:

Feb 4, 2012 - i hope that banks are that responsible

RecycleEmotions Says:

Feb 14, 2012 - Isn't this why Islamic Shariaa law is against interests? like the author of the video is saying, I want to see how this is going to end or survive :D what should I do with my money in the bank? buy gold or coke? I love these videos.

dickstoyevsky Says:

Feb 15, 2012 - How does the bank have money to buy the bonds from the treasury if the federal reserve has not loaned it to them?Before the FED steps in, what do the banks use to buy the bonds from the treasury that they later exchange with the FED?

encarsiaformosa Says:

Apr 1, 2012 - So Chris Martensen is apparently a very intelligent and thoughtful man in his forties with a PhD... I was wondering why he made so much more sense than those adolescent Ron Paul 2012 hacks. I am interested in reading his book now, but still I'm skeptical of Mr Martensen's economic credentials. Real growth may be limited, but why would the same apply to growth uncorrected for inflation? The current financial system does not appear to me to be unsustainable in the same way our energy system is.

pretorious700 Says:

Apr 23, 2012 - Economic "credentials" are more often than not, not a good thing. Look at the array of PHD morons in Obama's cabinet and running the fed. As for Ron Paul, I've heard him state pretty much verbatim everything in this vid, so I have no idea what you mean.

pretorious700 Says:

Apr 23, 2012 - The Chinese national bank is leveraged at this time of writing 1200:1.

pretorious700 Says:

Apr 23, 2012 - Chris is absolutely right, but he fails to mention also that interest on principal is also LOANED INTO EXISTENCE.

encarsiaformosa Says:

Apr 25, 2012 - Credentials aren't everything, but they're a good proxy. E.g., in the current financial crisis, it seems that economists, and especially ones specialized in such crises, have the most convincing and well-supported story to tell. But then there is Ken Rogoff...And I wasn't talking about Ron Paul himself, but about his pesky internet supporters (not a pleonasm) who post weird videos and comments that are basically scripture readings with 'God' replaced by 'freedom'.

TroySmithforD Says:

May 6, 2012 - OMG! it's all starting to make sense..and it's really freaky

brettymike Says:

May 10, 2012 - Yes Chris ,we learned about this rotten money printing scam running crooks(banksters) already.Let me explain it quickly folks - the rotten rothschild driven world bank spider owned by a private cartel of crooks (who our wonderful politicians and police have let go on for decades)Prints money out of thin air when you need to buy a house to live in and they charge you 250-300% or more INTEREST for it!.