Video: How Banks Create Money out of Thin Air. 1st 4 minutes: A little History on how "credit" is the creation of "Money from Debt". 4:10 How Gold became the basis of Money and then the "Banking Scheme" evolved. 10:00 The basic nature of Money have changed. The Gold that used to back up our money has steadily shrunk to NOTHING! Money used to represent VALUE - Now it represents Debt! 12:25 How Banks actually CREATE Money - out of Thin Air! 19:15 How only Government can pass the Laws that enable the Banks to "create" money. That the money Supply is, in reality, now extremely small but Credit (DEBT), what everybody OWES is unlimited! - well, limited only by how much they are willing to BORROW (knowing they have to re-pay it). And, then, unfortunately, the opposite is true: If there were no DEBT there would be No MONEY! 23:10 If everyone were out of debt, we imagine eveything would be great. But, in reality, there would be NO MONEY AT ALL! 24:30 The relationship between Interest and the System - they feed on each other. 26:20 Isn't a collapse of our monetary system inevitable? 28:15 What can we do about this SCARY situation? How can we create a monetary system that will sustain itself? 40:30 How we finally lost control of "everything" - with the creation of the FED in 1913.
What The People are "told": That the Banks loan out the money we entrust them with as Deposits. This is The BIGGEST LIE Ever! The next one is very unclear and complicated - an explanation of our Money & Banking System in short: The biggest private banks create money by controlling the Central Bank? which creates the actual cash, out of thin air. The banks borrow the money from the Central Bank with interest. It also gets money from savers (far less) and then loans it to people at a higher interest rate. These people than spend it say, on houses. This creates demand for houses allowing them to be built and increasing the GDP. The money now represents the homes built. This is the 2nd Biggest LIE Ever! I'm sorry but that is NOT how it works: "Banks admit they CREATE brand new money for each loan customer, money they did not receive from anywhere else other than the borrowers promise to pay."-- Thomas Hedin-- They usually loan out the SAME deposit money 10 times! And, they receive back 10 times as much as they had - PLUS INTEREST! And, if YOU default - They can TAKE ALL of your TRULY valuable assets, that you pledged as collateral, and still have 90% of the "money they CREATED" - out of Thin Air!
SIDE-NOTE: In the 1st Sowell Video, note the Lady, Frances-Fox-Piven; she and her husband Richard Cloward, both Professors at Columbia at the time, formulated the "Cloward-Piven Strategy" (that is currently being implemented by the Socialists working within our "Welfare System"): How it works: "If the Govt gives more & more 'welfare' (free stuff), the system (our Govt) will eventually collapse in upon itself; As there are more & more people demanding more & more government 'Benefits' (free stuff), and more & more government employees being paid to bring more & more people into the system, there will be less & less people supplying the work and money to pay for it all." It is well on its way. All you have to do is look at the meteoric rise in welfare entitlements, the according ride in debt and interest our government is paying and the corresponding dramatic reductions in real money available to the Gov't for "capital" spending. Ref: Wikipedia
Every American should watch this short lesson A Budget that CAN'T be Balanced a non-partisan video produced by Hal Mason, a retired, 27 years with IBM, accountant. He looks at the budget, its revenues and expenses, and very simply illustrates the problem. Amazingly, we get all the media talking heads blathering and shouting for hours and never get clarity. This guy does it in a couple minutes.
A black American Economist, National Humanities Medal winner, social theorist, political philosopher, and author. Who is he? UnionLeader.comWikipedia
Most would consider this GOOD News:
Milton was troubled: "Everybody is "persuaded" that Socialism is a failure, yet we are steadily moving toward Socialism - and our Citizens were steadily LOSING their Freedoms." He stated: "In 1950 the government was spending about 25% of the GNP - in 1994 it had risen to 45%. . In fact, we are more than 1/2 Socialist today - more than 1/2 of the Total Output of the country is being distributed in a way that is determined by the government! Consider your loss of freedoms! You cannot become anything you want - because of government regulations. Everyone cannot become a Lawyer just because you want to. It's true for Beauticians, for Plumbers etc - you have to get a License."
The FED We have a separate page for this issue as it is so important. It is not even OWNED by our government - or by you! Yet, it has complete control of YOUR money and mine. It has already given away TRILLIONS of YOUR dollars and is reducing the value of what we have left. GUESS where the money is going.
"Save the Planet!"The ENVIRONMENTAL ISSUE has been used to dupe us into "oblivion". This is very important and we have a separate page here for it.