I am glad RUclips showed me your videos. When I see newscaster and interviewers saying the country can't afford it then I get angry and wish they understood this viewpoint. It suits the politicians and media leaders that the majority of people remain in the dark. I have subscribed and will be watching more.
Since Biden took office, there seem to have been more unfavorable results in America. I am really worried about the current bank crisis/interest rates, these are all the signs of yet another 2008 market crash 2.0 , so my question is do I still save in the United States dollar or is this a good time to buy gold during this period of election?
It’s always a good option to keep some gold. Well with the current market situation and everything at stake with the present economy, I’d say you’re better off staying away from stocks fr awhile or better still reach out to an adviser for guidance.
True, a lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $100k to approx. $231k so far.
I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?
@@hasede-lg9hj I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?
I won't pretend to know everything, though. Her name is Annette Marie Holt but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
And on this topic.. Have a guess at how many people have gone glassy eyed when I've tried to explain this to them over the years? OK, don't, you probably have many such tales to tell yourself. (I even had this conversation with a member of my bank's staff, once. They got it but didn't feel it was too relevant to the day-to-day). You know, sometimes I feel like a bore. And at others I get attacked with the phrase: "politics, I don't want to hear about politics".. Oh well. Life is. Ps: the edit was because adaptive text decided that 'bank' should read 'gang': make of that what you will..!
*If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation*
Interesting, This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro Investor?
I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
Brian Humphery Services was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Brian.
It is a promissory note. When you raise a mortgage they create the funds based on your signature (a promissory note) and then charge you interest on the funds that you just created.
Similarly, you don't own your home but only you pay a subscription plan (land taxes, council taxes etc) for the exclusive use.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated.
Your home taxes also prove that you are the current owner and have responsibilities for the property. This record is there so you don't have to fight every day to prove you own it against someone who happens to come along and wants to claim it as theirs. We can't have society function if a bunch of property gets tied up with 'forever ownership'.
@@rebopdeluxe9463 People will laugh at you. I told my son and asked his teacher tell him the truth about money creation and she said she did not want to confuse the kids.
It drives me crazy that the government can bail out a bank. It's literally us tax payers funding outlandish bankers gambling addictions should they go wrong!
Bail out can never stop. That is because the government secures all the money in the biggest banks. If those banks collapse, the government collapses. And BY LAW in America, the biggest 4 banks cannot collapse. They each own 20 percent of the shares of the federal reserve bank with the federal government in the US owning another 20 percent. Each of the shareholders is guaranteed 6 percent return by law on the money they lend out to customers or all the other banks in overnight loans. If you actually read the law and how the central bank is constructed, you can understand this system and the impossibility of the major banks failing. It’s against the law, literally. Don’t react-do your homework first. I read through the laws and structures first.
The problem compounds though. The 1% are actually getting richer at an accelerating rate as we get poorer at the same rate. The two are inversely proportional. This is why wealth inequality is the single biggest problem that mankind faces. Worse than climate change as we can all (most of us) agree on what we need to do to fix that.
Thanks for this clear explanations. There is one fact that should be emphasized in my opinion: If you have a positive account balance the debtor (the bank) is exclusively documenting what is owes to you. And you as the creditor usually have no legally binding document in hands confirming what the bank owes to you. With online banking many customers don't even have printed statements on paper. Guess what happens if the IT of a bank goes out of service and how the deposit insurance works then.
well explained and its the truth. the only thing i take issue with is when you call it "Money" when you should be calling it "Currency". Money does exist today and that is gold and silver and that has never changed for thousands of years. Over 4000 debt based fiat currencies have failed throughout known history but gold and silver never failed.
Money was not invented by any single person. There is no specific inventor of money who can make such a claim. Money emerged organically through experimentation, effort, and conflicts, primarily to fulfill human needs. Over more than 5000 years of history, money has been created by humans, for humans, evolving through various stages including testing, wars, and societal developments.
Depends on what you mean by fail. If you mean grow at a rate not above or even equal to inflation, then gold has failed at times. That leaves us with Bitcoin, the new digital gold.
Great video. The late sadly missed David Graeber wrote “Debt. The First 5000 Years” which covers the story of credit and debt. Much more important than barter and coinage. The book was serialised on Radio 4 as “Promises, Promises” and is on BBC Sounds. Narrated by the man himself.
Similarly and sorry to keep repeating this concept to anyone here, you don't own your home but only you pay a subscription plan (land taxes, council taxes etc) for the exclusive use.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated.
Glad to have your “explainers” back, Mr Murphy! Now, I’ve been amateuring my way through economic theory since Stiglitz just before the ‘08 thing. However, if I try to narrate or forward e.g. this video to wife, friend, family, colleague… I get like a blank stare in return. Politics aside - eh, that’s the issue - we put “politics” aside, because there’s a tremendous asymmetry (Stiglitz again) between our economical (dis-) beliefs and our actual experience and close history. Or, a serious disconnect between ontology and epistemology - orthodox or heterodox. I think we experience polarisation and “infights”, because we can’t make sense under this cognitive dissonance. So, please keep making all those sturdy bricks of insights - we have important bridges to build…! 👍
"If the people only understood the rank injustice of our money and banking system there would be a revolution before morning." - President Andrew Jackson.
This is exactly why the mainstream media and institutions obfuscate economic and financial systems as much as they do. To stop the masses from understanding what's really going on. That's why channels like this are so valuable.
Wow great information Richard. I guess thats also why bail ins are legal in times of a declared emergency. On a different subject I found it very interesting when I looked at the signature line on a check. In America anyway its not a line. Its a series of very small words you can see under a magnifying glass.
@@Enzo012 Yes, you can purchase used coins from Royal mint, they have a value in silver.. and GOLD Sovrereign, is acceptable all over the world..Also changing your FIAT into Gold & Silver will maintain its value.. as FIAT money is depreciating by day..Gold & Silver will appreciate as the years go by.. its a safer way to hold it, physically or in a Vault.. like Bullion Vault.
@@netthawk5635 Sure but that's bartering not spending. Legally you could spend bullion coins for their face value but that wouldn't be remotely the value of the metal.
and the bank does not lend your money. When it lends it creates money for the borrower -an asset- but the borrower is also in debt to the bank. When the debt is repaid the borrower also has to pay interest which is the income of the bank.
The monetary system has evolved since 1690, not by natural forces; but rather by the designs of bankers, who profit by their manipulations. Therefore, what you are experiencing today is not what it was in 1940, or in 1900 or in 1860 etc. It is important to keep this in mind, that the currency system is still in a state of flux, and ever further manipulated to advantage the banker and politician, and disadvantage further (steal from ) the ignorant common people (99.9%, ) but we the people dont understand this, or the extent to which monetary practices have evolved to steal from us, because in our minds we work for money, our parents worked for money and so did our grandparents, so isn't it all pretty much the same with a little bit of inflation ? Hell no ! There have been massive machinations and manipulations designed to harvest your work and energy to the advantage and privilege of a few. And because monetary principles are abstracts that cannot be seen with our eyes, they require mental effort to get our heads around. They are in fact, a completely separate topic to practical daily living, yet they effect our daily life totally. The first principle to understand is that you have been robbed of real money by successive bankers, because the whole idea of 'Money ' is to hold something of real value as your own property, and to receive something of real value for your labour and productivity. But you get nothing, you get zero of value. You get paper, or plastic or electrons for your work and efforts, and these, having no fixed intrinsic value weight or measure, can therefore be manipulated and devalued before you even believe you have it, and faster than you can accumulate it. Devaluation through inflation is the insidious tax your vote or will has NO power to address; the banker alone retains that privilege, and uses it to rob you every second of every year, night and day. You have been hood winked by slight of hand and mind into accepting a constantly devaluing IOU for nothing, all at the point of a gun, because 'legal currency ' means, you shall accept this degrading note alone for your labour, or the armed sheriffs will pay you a visit, and commit further theft and violence upon you, as the state retains to itself the Exclusive franchise to exercise violence. When the State does violence, that's OK. Your forefathers were paid in real money, Gold and Silver, but the bankers were limited in what they could loan out by metalic money, so they sought to do away with it, and they invented the promissory note, the 'bank note' which promised to be redeemable for a Silver or Gold coin. They did this to remove the natural restriction on what they could loan out, because new debt at interest is their primary tool of harvest. Then, gradually, they removed the metal altogether, telling you it was for your own good, because now you could have a booming economy and more commerce, and no limitation on how many hours both you and your partner could work . (The 'full employment' mandate simply means you all shall work all of the time until you die, but in the 1700s 6 months work would keep you alive all year if you owned your land. ) Once they had the Exclusive note printing power, they went to town, printing any amount their bought servants in government wanted, creating the national debt, whereby an unborn child is born in servitude and serfdom to an now $100,000 to $ 150,000 debt to who ? That would be the share holders of the Federal Reserve if you live in the United States, or the Central Bank in your country, and also the large private banks, for once government abrogated the currency creation power to both the Central and large private banks, they must then go cap in hand to the banks to build new public infrastructure. So now every county, state and nation has indebted their ' citizens' in totally unpayable debts to the currency creators. Meanwhile after Bretton Woods the Federal Reserve sent its agents around the world to ensure that all Central banks were created in its own image, doing exactly what it does, so no one shows them up, even though quite a few Central banks are not privately owned like the Federal Reserve is, yet they still create ALL new Currency as Debt which indebts you, your children and grandchildren forever. That is a small taste on the first faulty monetary principle and that's before we talk about the unpayable interest on the new worthless currency that they create for zero cost. There are 4 faulty monetary principles in practice that ensure 99.9% will live in servitude to the .1% Unless you educate yourself and then teach your children and grandchildren, you will remain enslaved, 70% of your work goes to the bankers and bureaucrats.
We are all like this then... Something happen and we wake up from this deep sleep. It is called the awakening of human consciousness. Waking up brings with it pain and anger, resignation. But above all a deep desire for truth.
Similarly you don't own your home but only you pay a subscription plan (land taxes, council taxes etc) for the exclusive use.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated.
Being greedy is part of human nature. Who wouldn't be, given the opportunity? This can only happen when you have the power to print money with no limits. No one in this universe should have this type of power, as that is where the true danger lies.
Money was not invented by any single person. There is no specific inventor of money who can make such a claim. Money emerged organically through experimentation, effort, and conflicts, primarily to fulfill human needs. Over more than 5000 years of history, money has been created by humans, for humans, evolving through various stages including testing, wars, and societal developments.
@@KoDeMondo exactly. Here's a quick primer on what's wrong and what to do about it. ALL fiat currency is debt, that's the only way the Central Banks make it, whether through government bondage note, or private bank loans. Bankers have developed four practices that are unsustainable and catastrophic. If we dont understand the causes of a problem we will address the symptoms or actors, not the causes. 1st. Large private and Central banks have obtained the Exclusive franchise to create ALL new Currency as Debt, at interest. An increasing population needs an increase in currency, but it is ALL created as a debt to the Central Bank, bearing interest. This indebts the whole world, every person, every government, in totally unpayable debts, ( because where can the interest come from) enslaving us all to bankers through personal debt or ever increasing oppressive and unjust taxation, permits, licences, registrations, regulations, rates, duties, fees, fines, levies, surcharges, adinfinitum, of which an increasing volume goes straight to the debt creators, who created it for free. (At zero cost to themselves.) 2nd. Because of the first fault, (wherein a Central bank has the Exclusive franchise to create ALL new money,) and they attach interest to it, (which they do not create) they must continually create more currency to pay the interest on the last round of debts and to resupply liquidity as debt repayments suck the last round of currency they created out of the national economy. The volumes of the booms and busts of 'credit cycles' are totally unnatural and the economy should follow population growth. Inflation, (or rather, devaluation through deliberate currency oversupply,) is destructive to all but the rich. There is virtually no limitation on fiat currency creation. Because successive governments have abrogated the peoples right to create their own Sound debt free money, the state also sponsors inflation by borrowing and spending, 'stimulus ' in the vain hope that they can 'create wealth through debt,' and inflate away past and present debts with NEW DEBT ! 🤪🤪🤪 This robs the people under their very noses. Adding to this is fractional reserve banking wherein private banks effectively create massive new Currency volumes, (but its only temporary because it's all debt) blowing bubbles (in housing/CRE/stocks) which devalues everyone's savings, work, 401k & pension, by raising all prices. (Which don't return to their former level when inflation reduces, the rate of increase simply slows down momentarily. ) We call price increases inflation, but it's really devaluation of your savings, time, work and while corporations do add to inflation of prices, they generally are Not the primary drivers of inflation. Attacking corporations is becoming side tracked. Shrinkflation further adds to our reduction and desolation as companies attemptto make the same or more profits than last year. (Did you know the only time our society gets some real new Currency ? It's when someone goes bankrupt and can't repay the banks what they borrowed. ) The fix ? The first step is to end Central Banks and return to Sound Metalic Money. This will slow the rate of currency creation and make it much more difficult to devalue our wages and savings by currency 'printing.' The 2nd step would be to legislate that banks publish their reserve ratio. So if they have $100 million on their books in deposits, and $50 million in loans, that's a 50% reserve ratio. We could legislate a reserve ratio, and by openly publishing this people can choose the risk level they are willing to take. Along with this we need to legislate an industry to home loan ratio. This will change banking and we need to change banking, because it is destructive. The banks wont be able to make as much, and that's a good thing. We need to make money anything the people want, but legal tender must meet Metalic standards under the office of weights and measures, and national and state treasury departments and mints could produce and release real intrinsic value Money. This will not create inflation like some bankers and their economists would have you think. It is not who creates currency that drives the Constant devaluation of your work & money, it is THE VOLUME per population/ productivity. The banks increased the base currency supply by over 65 % since March 2020 & 300% since 2008. This has been greatly multiplied as deposits were rolled back into real estate loans creating bubbles, which further lever up equity to back more loans. You can't spend it off planet, and we've had no increase in population or productivity. How can it not devalue our savings, wages and retirement funds by a similar % as it enters the economy ? 3rd problem. Fiat currency whether paper OR DIGITAL has no intrinsic value, thus it cannot be used as a long term store of value, particularly in an ever expanding fiat system. Taxation and the 'legal' currency label attached to fiat creates artificial demand for fiat currency. This is the 'Force' component of Fiat currency, wherein you are forced at the point of a gun to accept worthless paper or electrons for your daily work. Metalic Money is the currency of a free sovereign people. Fiat at Debt is the currency of slaves. The fix ? Return to Silver, Gold, Copper & Nickle currency, designated by weight, not cents/dollars. These will find their own local value. These can't be printed to oblivion, have intrinsic value, and are a safeguard against bankers counterfeiting. Continue to keep the manufacture of Gold & Silver rounds by private mints & foundries to help keep government mints honest. Do not allow bankers and economists of the current system to con you into believing there isn't enough Metalic Money. You float its value, mint it by grams and ounces and you have a Gold and Silver backed currency. Same with Copper & Nickle. Mint 10th ounce, 2 10ths, 5 10ths and 1 ounce and grams in 1 grams, 2 grams, 5 & 10 grams. Never give it a 'value number,' which is a lie. Give it its weight & purity, and let the market decide what it will buy. Call it 'slow money," like 'slow food.' It's slower for sure, but it's 10 times better for you. If you think there's not enough metal, live more like the Amish and there will be plenty. We are a totally wasteful people and that can't go on forever. Everything we manufacture should be recycled at end of life. No more landfill. Probably necessary to nationalise mines & pay shareholders out in metals. We are aiming at a more just, more perfect union, and that requires we treat shareholders justly and make them whole while preserving a mining and exploration industry. So gently, thoughtfully, carefully on this one. 4th. The 'World Bank' and IMF are your friendly international arms of the Federal Reserve, who loan worthless US currency invented at zero cost to enslaved nations of people to purchase necessities, when their own commodities or worthless currency would do just as well. This ensures the indebtedness of nation's simply to survive. I suggest a goods and commodities exchange between countries, with a quarterly settlement of shortfalls with Gold or Oil/Gas. And oil and gas are not the monsters they are made of to be, and may well prove to be the greenest energy sources other than hydro. Studies suggest making an electric car requires the moving of 500,000 lbs of rock/soil, (which is only possible with diesel and oil) so the real energy footprint of a battery that has a 200,000 km life could easily prove to be twice that of a clean running low emission gasoline vehicle with a repairable engine, and LPG is extremely clean due to less carbon atoms. (3-4 carbon atoms, vs gasoline at 4-12 carbon atoms.) This research is present and ongoing. Correct these 4 Principles and >80 % of a nation's problems would disappear. Do not allow your masters the Debt slave creator's to tell you it can't be done. They are not seeking your best interests, but theirs. It is easily done, it's just a different but far better system. Beware. The FED, IMF, WEF wants you totally enslaved with Digital currency. Convert your garbage fiat currency into Gold and Silver while you still can, or prepare for destruction. Come to think of it, you better prepare for destruction anyway, because humans are animals and always learn the hard way. The bankers motto is : 'Preserve your Capital at all costs.' The bankers are buying Gold. We the people can afford Silver. Good luck.
Central banks are the sole cause of inflation, so them hoarding gold is not to guard against inflation but to actively control the market value of the gold.
@@gofres BTC is actually a token of decentralized service and not actually decentralized money. It is amount of resource which went into solving complicated math problems. The only proper way to measure money is through a non-perishable commodity. As for BTC, with advancement of technology services get cheaper and so there is no proper way in which service based token can be considered money for its worth should technically go down withe advancement in technology--just like cost of labor goes down when there is abundance of labor in the market. This explains lesser coins being mined, but that doesn't explain value of BTC going up. Having said that, I own a tiny amount of BTC so that I can do online transaction if I need to buy something in future. But, by and large I am skeptical about all cryptos and digital currencies.
Erm no two banks the share same licence. If you are talking about two bank branches, then they are part of the same bank and you can have only one type of account with them, of course there are other accounts with the same bank. So if you have £100k in one account and another £100k in another in the same bank, that is foolish as the accounts will only be accounted for a part of the same bank - thus £85k is protected not £200k. But if the other account of £100k is in Barclays then £85k is covered. So that is £170k protected.
If money is a 'statement of debt', and the bank owes me a 'statement of debt', then I do have money in the bank. 2:23 There isn't money floating around, there's debt floating around, because all money is debt. Therefor, it is money floating around (money = debt). It's untrue to say: X = 'def of X' X doesn't exist, 'def of X' exists. because def of X == X
2:48 This is why you say 'tax doesn't pay for government spending', and why that statement is also untrue. Tax is the process of 'canceling the governments debt' created by government spending. Therefor, tax does pay for government spending, through the process of 'canceling the debt'.
Great video and some very inspired comments here. The use of analogies like Mary Poppins and Alice in Wonderland are helpful. I like the Wyle E Coyote comparison: We can all defy gravity until we look down and see the canyon yawning beneath us. Hence the collapse of Northern Rock, Bear Stearns etc. It all works as long as we believe it does - until we don't and then it doesn't! Keeping it mysterious and obscure allows those that understand it to hoodwink the rest of us and work what is essentially a system of flowing debt to their advantage. Explaining it in terms we can all understand, nibbles away at their power. Excellent start to the series.
And they can deliberately show us the canyon beneath us from time to time for example in the stock market and blame a certain event as the cause for a devaluation in a given stock. This will be followed by the view of steps leading back into the sky for those who were able to break their fall on the way down.
Similarly and sorry to keep repeating this concept to anyone here, you don't own your home but only you pay a subscription plan (land taxes, council taxes etc) for the exclusive use.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated.
Money was not invented by any single person. There is no specific inventor of money who can make such a claim. Money emerged organically through experimentation, effort, and conflicts, primarily to fulfill human needs. Over more than 5000 years of history, money has been created by humans, for humans, evolving through various stages including testing, wars, and societal developments.
For every debt there exists an equal and opposite credit. When the credit is returned (in the form of repayments and taxation) the debt is reduced. What concerns me is asset price inflation locking that credit away so that it can’t be repaid. Housing and share markets-I’m looking at you.
Its kept as data. A bank statement is just a ledger. The only thing is people can call on their debt at any time. If a lot of people do this at the same time, it leads to a bak run and then a bank probably cannot cover its costs
@@MicahBanks-m4t That I'm less sure on. Again, I think it's a ledger of debt a bank owes to you. The difference is this time they are paying interest on it, ot at least are promising to at a certain time, say once per month.
@@joecurran2811 for paycheques and things of that sort you’re right, the balance is just a reminder of how much the bank owes you. I think The cash someone deposits probably just sits there and is given to someone else when they need to withdraw cash.
There is NO MONEY - Only Titles & Claims - 10 Rules of Commerce Titles are property rights & Claims are debts issued by a titles holder, a secured debt backed by property rights, secured-rites, securities. Banks exchange securities for units of account, hence a de-posit (to-place) in your account. Banks don't lend money, they exchange your private IOU's (promissory note) for units of account. (Usually secured by titles directly, ie property rights or indirectly via a floating charge (lien) on your Legal Estate)
Excellent explanation. The government actually owns all the debt and guarantees that debt. Debt is what is issued from the King or centralizing forced to the banks, creating bank debt guaranteed by the government backing it. It all started with writing accounting practices back in Sumer on clay tablets, as the King wanted to build irrigation canals to increase crop production and fertile land. He did so by issuing debt to a farmer who used his spare labor after farming to dig canals. As a result of that work, the king through accountants sent out regions issued debt to the worker who volunteered to dig and expand the canal system. That debt was first symbols to trade in at a market, and then was alphabet letters to make those symbols more abstract and easier to spend on anything and not what was just represented by the symbols, like beer or wheat. Today, workers still get paid in debt, after they work two weeks or a month, the employer then owes them the debt they worked up and pays them that debt.
note debt is not canceled rather discharged. the legal name on the bank statement is issued by a legal entity hence not your name. the legal name is in fact the bank/banker.
The banking situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty. First SVB, then signature bank and now first republic bank, these are all the signs of yet another 2008 market crash 2.0
Sincerely it's best to seek an advisor right now, unless you're canny yourself. As a business owner in both the service industry and eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money.
I'm highly suspicious of the run on Silicon Valley Bank. The cause seemed to be the mass panic spread on social media by Peter Thiel who has strong connections with Donald Trump. What it really illustrates is how easy it is to cause a bank run with just rumour.
This was a very good explanation of this topic! 😎 And as a consequences, the whole of public debt then is clearly being the "money" of the private (or rather non-government) sector. Paying back all the public debt is not only pointless to do but would de a Desaster for the private sector. "Money" is not growing on rich people or produced by companies or workers. It all comes from the government/treasury/central bank, which essentially are one entity
@charliemoore2551 yes indeed! So that is why we as a society can and should only spend for and build what workers can actually do or what else required ressources are (or can be made) available. Not spending to much money on non-productive stuff, not on to scarfe ressources bit also not telling around there is not enough money, wenn capacities are still greatly available (companies producing below 100%, workers still unemployed) - that is where we ate now in many countries
First time I told someone this I was shocked to find out this person really believed the bank held the cash that had been deposited. And this person was over 60.
We are all like this then... Something happen and we wake up from this deep sleep. It is called the awakening of human consciousness. Waking up brings with it pain and anger, resignation. But above all a deep desire for truth.
@@KoDeMondo Now labour is saying there is £20 bn black hole in the government's budget = austerity. You get Owen Jones trumpeting his own forecast and ignoring the fact that the government creates money out of nothing. He says the government need to raise tax to get funding. He is a charlatan and part of the problem. ruclips.net/video/3jnFYQww4j8/видео.html
There a millions and millions of people around the world who still think that their money is stored in little boxes in the bank‘s vault labeled „John‘s money“, „Mary‘s money“ etc.
@@garryallison4716 Any material taken out of the money system would be given an arbitrary valuation by the holder and anyone considering a trade for the material. For example following a major nuclear war it would be safe food and clean water that would be more valuable than gold, silver and diamonds.
A fascinating bookkeeper's reality of "money" but I'm left wondering "so what?", how does that knowledge impact on our day to day lives, what needs to change?
Well as I come to this from a crypto background I can give you one example. Hypothetically, If I own say 1 Bitcoin. I don't keep that in the bank as the bank doesn't guarantee that I will be reimbursed if they go under and the UK government only covers it up to £85,000. So I self-custody it, so I'm not reliant on any institution not going bankrupt. I hope to retire on that 1 Bitcoin in 12 years by which time I might expect it to be worth £1 million pounds but probably more which the government at the moment won't cover. I've bypassed the risk of the banking system and currency devaluation at the same time. TLDR: The money you put into the bank is no longer yours, so don't assume you will always be able to get to it. Unlikely in a fairly stable economy like the UK but happens all over the world to less stable economies, like the USA.
A bank must issues an account statement as a legal requirement so if you have money belonging to you in a bank account how does the bank state you have no money in your account when your statement shows otherwise?
Its interesting to think about, but not much more than an academic trifle. If cash were a bearer bond, you could rightfully not take a note from the street to the police station. Gold you dont possess is a record of debt from the holders precious metal stock. In both managed and held, it's one word from the govt. away from being illegal to trade or requiring immediate forfiture, as has been done previously.
Interestingly, this IOU message is nowhere to be seen on a 20 EUR bill. So I guess the EU or local governments see no reason to pay us back 😁 BTW, did anyone send Rachel Reeves a link to this series? She might need it...
There's no "IOU message" on a dollar bill, either. Once upon a time, there were "gold certificate" and "silver certificate" bills, redeemable in the metals, but not in a long time. Money has gone virtual.
The Bank of England Act 1946 (9 & 10 Geo. 6. c. 27) is an Act of Parliament of the United Kingdom which came into force on 14 February 1946. The Act brought all of the stock of the Bank of England into public ownership on the "appointed date" (1 March 1946). This was one of a series of nationalisations by the post-war Labour government led by Clement Attlee. Public ownership = The Government
@jimihendrix991 you are saying public ownership...... government is a corporation.... BofE is PLC.... if BofE is Privately owned.... and government is a corporation... it can't be public ownership?..... in 2011 most countries became bankrupt and formed a new corporation...... America and Great Britain included..... but didn't tell anybody..... well... they did... but in a way nobody would understand .... it's very complex and I'm still researching to understand it..... America filed for bankrupt in 2011 and case was in Maryland Court.... the bankruptcy has to date not been triggered.... it will be triggered when the new finance system... CBDC..... the debt in the case is 14 quadrillion. I'm still trying to find the case in UK.... we have been living in a madeup life for the last 50 years..... and we are about to wake up..... and going to have a headache....
The truth is so scary when you really think about it. We're all just dealing with thin air. Get assets, no wonder so many rich people are now buying gold and other commodities.
Let's remember in this day and age what most people regard as money world wise is 3.5 percent cash and coins, 85 percent credit, the balance in notes like govt bonds iou promissory notes etc. The vast majority of money yes is credit which is a form of debt. All money now is debt. Even bank notes because it says so on the note. We could talk in circles all day but money is debt covers it all.
Convert fiat into Real money,physical Gold and Silver. Times are changing,get prepared,it’s going to get gnarly for a lot of people, the middle class is in the process of being wiped out. Stay safe.
@@truthseeker5911 No you could pay in sovereigns and Britannias. Both legal tender, and coincdently money of choice not by fiat, though if you did you would be defying Greshams Law (look it up).
Every time we tried this, it failed spectacularly. Why? Because gold is finite, and if an economy grows, you need more, but you can't have it, so it inflates. Great for the holder of Gold but not for the rest. People who want a return all hold gold, collectively known as gold bugs. They knew this would happen in the early 1970s when Bretton Woods ended partly due to US spending in Vietnam printing more dollars than they had in gold reserves, gold inflating in real terms even though it was fixed at $35 per ounce. Hence, the governments, seeing this was happening, purchased more gold at the $35 rate, knowing that they were more dollars than gold, so it was cheap. The IMF 1967 created a new reserve currency (SDR), fearing the dollar would become worthless and no longer be the world reserve currency. Nixon 1971 abandoned Bretton Woods and let the dollar float, UK 1973. Thus, the bond movie Gold Finger. From 1914 to 1931, Britain was on a gold standard, which failed due to the 1929 crash. A finite material in a growing economy will inflate. Infinite Fiat adjusts as resources (finite) become available. Otherwise, inflation or stagnation is a balancing act.
@grantbeerling4396 Eh? Good money should have the following attributes;
Medium of exchange A unit of account Portable Durable Divisible Fungible (one unit is the same as the next) A STORE OF VALUE OVER TIME . Gold fulfils this role in the free exchange between free people's, no fiat currency ever has (it works for all bar the last point). As far as growth is concerned, I think we did ok under the classic gold std in the late 19th century up to WE1. The social order was a different issue. What you need is a free market for capital and ideas with no one under any duress to risk the stored fruits of their labour due to it's decreasing value over time.
@@stuartrathbone5403@stuartrathbone5403 Ah, the storage of value via scarcity as an economy grows. Like I said, it's great for gold bugs as they hold all to ransom. If an economy grows at 2% per annum, it will double in size over 31 years. If the gold volume stays static, then its relative price will double. Fiat adjusts by increasing the money supply as economies grow, which controls its inflationary value. (at preset retracted by interest rates, which is regressive, it should be progressive targeted taxation to retract surplus money to be destroyed). Fait is the valve, whereas, for gold, inflation/stagnation is the valve via being fixed in quantity. Gold led to the Mercantile system of who holds the gold and who holds the power, which Adam Smith's The Wealth of Nations aimed to break. Again, that is why it was abandoned, especially for a hungry war machine.
@@John-ou4rm www.gov.uk/government/consultations/bail-in-powers-implementation-including-draft-secondary-legislation/bail-in-powers-implementation Worth a read. I’ve only just skim read it. Looks like the 85k is protected but may be listing as a creditor. Would also need to look at the 2015 act as well to see what the state of that is as well.
Great video Richard . Why don't you next explain to your viewers about the up coming bank "bail ins" when the next GFC comes. Gold and silver in your own possession are the only true money.
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances because even the bank is insured, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
Honestly you may never know the value of that £1 you have until you go bankrupt, the bad experience I had last year really made me feel that our school curricula should contain more financial knowledge and education. It is never enough to have a good job, a huge salary and all the luxuries at your disposal. But saving money and investing it wisely is never a bad idea,... I learned how to invest, no matter how little, but life really believed it show me the hard way. Thank you for the nice video its always interesting to watch your content
Sometimes, it's not about having a talent, skill, or passion. But what if I told you that with the right investment, you can still achieve your goals? No talent, no skill, no passion, but good investment can bring you financial freedom. Don't underestimate the power of smart financial decisions!"
Understand your financial needs and making effective decisions is very essential. If I could advise you, you should seek the help of a financial advisor. For the record, working with one has been the best for my finances....
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited $560k in gold last year under the guidance of my Financial advisor, I'm selling? Absolutely not.. I am going to sit back and observe how this all plays out.
Obviously i keep wondering how people earn money in financial markets, i tried trading on my own made a huge loss and now I'm scared of investing more...
You are a bank n go to a central bank saying you have $10,000 in your vault, they create high powered money of $100,000 based on the fractional reserve. Once it goes out again as originally money they can loan out the fraction reverse $100,000, $90,0000, $80,000 until zero of new debt. Yes it’s a debt based system that relies on consumption and people prepared to work and pay off the debt
Thank you, I found that interesting. Question: The silver predecimal crown (5s/25p). and the gold sovereign (£1) are still 'legal tender' but as they hold a component of real value, regarding their silver and gold content, would this coins count as 'real' money rather than a issuance of debt and thus be an exceptions to your argument?
Really well described! Do you think there woule be interest to go on in the same way to describe risk-free debt, its usefulness in balancing portfolios and the consequent demand for govt bonds?💚
We are all like this then... Something happen and we wake up from this deep sleep. It is called the awakening of human consciousness. Waking up brings with it pain and anger, resignation. But above all a deep desire for truth.
'Money in the bank' is just a turn of phrase- just like people say they have 'got a mortgage' when actually they have given a mortgage (a lien on a property). Given that, if you ask your bank for the money, they will give you it, it is not that inaccurate. Yes, they are just transferring it from bank debt to government debt, but it has the properties of money (all four of them) so it is money.
Is there any chance you could remove those subtitles. We’re not illiterate, and YT provide this facility too. You are of course speaking English, and then providing subtitles in the same Language. Weird!
What we need is money that is not onwed or controlled by any government has no ceo Doesn’t need a bank to transfer peer to peer has a fixed supply so can not be inflated by government can be secured in a cold wallet. Does anyone no of such a thing
That note you hold is an IOU that you can use to exchange for itself at the bank 😂. The fact that most money is debt is because they allowed the banks to practice Fractional Reserve Banking, which banks can “lend” new money out to borrowers (ie new debt creation) even when they don’t have the physical stock of money. Effectively, we don’t need humans working at the banks since all these debt contracts can be handled by computers.
I was feeling a little fed up with the Labour Government with State Pension means testing and their access to all our bank accounts , this has really cheered me up considering it's a load of semantic bollocks.
It could get worse if the Bank of England get their way and bring in a Central Bank Digital Currency to replace paper money. They will not only be able to see every single transaction you ever make or receive but they can if they want to stop you buying that new car or that box of wine. It's in the research phase now but they look determined to bring in a CBDC. They won't have to rely on interest rates to deter us from spending to bring down inflation, they can do it directly by throttling your spending with the CDBCs.
The £20 pound note is not £20 pound sterling. The bank or government will not give that in gold or silver the real value they will only give you £20 pond note or equivalent, not the actual £20 pound sterling which is more that £20 pond note. The same goes for banks when they get bailed out the government lets them credit your or their account a £20 pond note not £20 pound sterling You won’t ever get £20 pond sterling which has increased in value over the years. £20 pound note and £20 pound sterling are not the same thing. Just like in the US, $20 dollar note is not the same as $20 dollars, even though they look or sound the same theres a difference. Example, $1dollar silver is more than $1 dollar note, they use to be equal until 1933. If you have a $1 silver dollar and $1 silver note in your hand they seem equal in value to the eye, now bring them to a bank and the bank will give you a regular $1 dollar note for your $1 silver dollar note but your $1 silver dollar meaning coin it’s value is silver market rate etc same goes in the UK. They use to exchange for equal value but bank runs are what changed the laws and government stole your money and gave you debt notes worthless pieces of paper that they use to keep you in debt. The governments keep two sets of books one for the bank “ debt’ notes and one for the real money gold and silver. Just read about what happened why the change in the law in UK /US and you’ll see that you’ve been pirated. But was done for good reason at first to keep bank runs from depleting a countries real money supply. When countries settled their books with each other that’s done in gold and silver when banks and governments settle books with each other that’s done with notes when you and banks settle books that’s done with notes. This being the real fractional reserve is gold and silver that’s why the US for example has only about 3 trillion in notes in circulation and the 40 trillion is book money “milk money “ just ledger entries of debt, which makes about 300 billion in gold and silver as the fractional reserves on the government books. Fractional reserves for government, central banks, and commercial banks have different laws and must be held in different forms of money species. In short their trying to bankrupt everything.
All money is created by the banking system itself and all of it is created as debt; therefore it is a loan from whatever bank first issued the money in question. In truth it doesn't matter which bank specifically is in question; what matters is that it all has to be repaid - and that happens through taxes that you pay.
Gold is money.....everything else is just debt. It's scary that people have so much trust in the internet. Just because a major bank hasn't recently crashed here in UK dosen't mean it can't happen. Keep using "cash".
Do you have any thoughts on the idea that many of us have a lot of money of which is hidden from us. Something to do with Birth Certificates / Registering births. An amount of Gold attached to our Name.
Love your channel, Richard, but can't help feeling that economics is a sort of Alice in Wonderland affair. The 'creatures' that inhabit it appear quite comfortable with the topsy-turvy nature of it and are very happy to explain it to all us 'Alices' in terms that are very difficult to relate to any reality. In the 'real' world I get paid for doing some work for someone else which gives me the ability to pay someone else for goods I want or need and because I accumulate more than I need at pay day I give it to the bank to stop someone else rummaging under my mattress and making off with it. Because at some point in history the Madhatter and the Dormouse decided to print some words on a bank note that expressed their view of what it represented does not make it any more definitive than the words on the Dollar bill "In God We Trust" proving the existence of Santa Claus! (Miracle on 42nd St, if you haven't seen the film). When did we depart from the sane world and swallow the 'shrink me' potion?
user We departed from the sane world in three stages: partially in 1913, a bit more in 1944 and then fully on August the 15th 1971 (temporarily, you understand).
@@abody499 It happens to us all on RUclips and it's often very difficult to know what triggers it. I've learned to be very careful - on pro-Ukraine channels for example not to use words that relate to hostile actions, depriving people of life etc - but even so I lose 25-30% of my very well considered, non-inflammatory comments on all topics, including once praising a curry recipe! I'm grateful to RUclips for making so much material available, but the experience is marred somewhat by this irritating factor. Now to see if this one is removed...
I am glad RUclips showed me your videos. When I see newscaster and interviewers saying the country can't afford it then I get angry and wish they understood this viewpoint. It suits the politicians and media leaders that the majority of people remain in the dark. I have subscribed and will be watching more.
Since Biden took office, there seem to have been more unfavorable results in America. I am really worried about the current bank crisis/interest rates, these are all the signs of yet another 2008 market crash 2.0 , so my question is do I still save in the United States dollar or is this a good time to buy gold during this period of election?
It’s always a good option to keep some gold. Well with the current market situation and everything at stake with the present economy, I’d say you’re better off staying away from stocks fr awhile or better still reach out to an adviser for guidance.
True, a lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $100k to approx. $231k so far.
I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?
@@hasede-lg9hj I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?
I won't pretend to know everything, though. Her name is Annette Marie Holt but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
Finally,,, please, the more people you can get to listen and understand this the better.
And on this topic..
Have a guess at how many people have gone glassy eyed when I've tried to explain this to them over the years? OK, don't, you probably have many such tales to tell yourself. (I even had this conversation with a member of my bank's staff, once. They got it but didn't feel it was too relevant to the day-to-day).
You know, sometimes I feel like a bore. And at others I get attacked with the phrase: "politics, I don't want to hear about politics".. Oh well. Life is.
Ps: the edit was because adaptive text decided that 'bank' should read 'gang': make of that what you will..!
*If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation*
Interesting, This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro Investor?
I feel Investors should exercise caution with their exposure and.exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or a licensed expert in order to navigate this recession and achieve potential high yields
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
Brian Humphery Services was my hope during the 'bear summer' last year. I made so many mistakes but also learned so much from it, and of course from Brian.
He is really a good investment advisor. Was privileged to attend some of his seminars.that's how I started my own crypto investment
It is a promissory note. When you raise a mortgage they create the funds based on your signature (a promissory note) and then charge you interest on the funds that you just created.
The very definition of legalized crime, a perpetual ponzi if there ever was one. And, everyone is forced to participate.
Exactly right. Try telling the Sheeple!
Similarly, you don't own your home but only you pay a subscription plan (land taxes, council taxes etc) for the exclusive use.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated.
Your home taxes also prove that you are the current owner and have responsibilities for the property. This record is there so you don't have to fight every day to prove you own it against someone who happens to come along and wants to claim it as theirs.
We can't have society function if a bunch of property gets tied up with 'forever ownership'.
@@rebopdeluxe9463 People will laugh at you. I told my son and asked his teacher tell him the truth about money creation and she said she did not want to confuse the kids.
It drives me crazy that the government can bail out a bank.
It's literally us tax payers funding outlandish bankers gambling addictions should they go wrong!
They have gone wrong and are about to do so again.
A hint that democracy is just for show. Who has the wealth still make the rules.
@@lenuvian I totally agree.
Bail outs will stop one day, bail ins will happen.
Bail out can never stop. That is because the government secures all the money in the biggest banks. If those banks collapse, the government collapses. And BY LAW in America, the biggest 4 banks cannot collapse. They each own 20 percent of the shares of the federal reserve bank with the federal government in the US owning another 20 percent. Each of the shareholders is guaranteed 6 percent return by law on the money they lend out to customers or all the other banks in overnight loans. If you actually read the law and how the central bank is constructed, you can understand this system and the impossibility of the major banks failing. It’s against the law, literally. Don’t react-do your homework first. I read through the laws and structures first.
90% dont have money at all,not in the bank,not at home, nothing.
9% have some
1% have all,more than they can expend in 100 lifes
Greed, greed and more greed
So we do need a big reset to take this surplus back
@@xxXTheGamingPROHDXx we need to heavily tax the ssets of the Rich, not the low and middle income people.
The problem compounds though. The 1% are actually getting richer at an accelerating rate as we get poorer at the same rate. The two are inversely proportional. This is why wealth inequality is the single biggest problem that mankind faces. Worse than climate change as we can all (most of us) agree on what we need to do to fix that.
Wow, well said!
Thanks for this clear explanations. There is one fact that should be emphasized in my opinion: If you have a positive account balance the debtor (the bank) is exclusively documenting what is owes to you. And you as the creditor usually have no legally binding document in hands confirming what the bank owes to you. With online banking many customers don't even have printed statements on paper. Guess what happens if the IT of a bank goes out of service and how the deposit insurance works then.
The negative balance in your bank account is an artefact
well explained and its the truth. the only thing i take issue with is when you call it "Money" when you should be calling it "Currency". Money does exist today and that is gold and silver and that has never changed for thousands of years. Over 4000 debt based fiat currencies have failed throughout known history but gold and silver never failed.
Money was not invented by any single person. There is no specific inventor of money who can make such a claim. Money emerged organically through experimentation, effort, and conflicts, primarily to fulfill human needs. Over more than 5000 years of history, money has been created by humans, for humans, evolving through various stages including testing, wars, and societal developments.
Gold isn't money, its an element.
Depends on what you mean by fail. If you mean grow at a rate not above or even equal to inflation, then gold has failed at times. That leaves us with Bitcoin, the new digital gold.
Great video.
The late sadly missed David Graeber wrote “Debt. The First 5000 Years” which covers the story of credit and debt. Much more important than barter and coinage.
The book was serialised on Radio 4 as “Promises, Promises” and is on BBC Sounds.
Narrated by the man himself.
Yes, a must read for anyone interested in this subject.
Similarly and sorry to keep repeating this concept to anyone here, you don't own your home but only you pay a subscription plan (land taxes, council taxes etc) for the exclusive use.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated.
Great Book
That’s why the previous generation, never trusted banks and to my grandparents cash was king.
Cash is numbers printed on paper. Gold and silver is closer to real money
It makes sense that we've gone back to keeping money under the bed but in the form of self-custody crypto.
but cash is just a promise to pay, it's also worthless.
3:30 - erm. You’re not a debtor unless you owe them money. If you are the creditor, the bank is the debtor.
Glad to have your “explainers” back, Mr Murphy!
Now, I’ve been amateuring my way through economic theory since Stiglitz just before the ‘08 thing. However, if I try to narrate or forward e.g. this video to wife, friend, family, colleague… I get like a blank stare in return.
Politics aside - eh, that’s the issue - we put “politics” aside, because there’s a tremendous asymmetry (Stiglitz again) between our economical (dis-) beliefs and our actual experience and close history. Or, a serious disconnect between ontology and epistemology - orthodox or heterodox.
I think we experience polarisation and “infights”, because we can’t make sense under this cognitive dissonance. So, please keep making all those sturdy bricks of insights - we have important bridges to build…! 👍
Fractional reserve, it falls somewhere between robbing Peter to pay paul and gambling with borrowed money.
Debit and credit is all it is basically. Your money in bank is a debit to the bank. The Government needs the bank to operate.
Superb video, after working in finance for a number of years and having been taught exactly what you have just stated I now have loads of debt lol.
Cash in a shoe box is still better than a digital currency.
Not if you are talking about Bitcoin
Not if you have a house fire or burglary
@@neiltitmus9744If my money burns then at least no one else gets to spend it.
@@BitcoinandGold
$65,000 per bit coin.
Not within your average punters reach.
How many people live paycheck to paycheck ?
@@neiltitmus9744
Had many house fires or burglaries lately ?
I like having no money in the bank. It’s something I am good at.
Hear hear
Mind blown. Thanks for making this
Great video series ... very educational and I like the truth telling rather than myth busting concept.
"If the people only understood the rank injustice of our money and banking system there would be a revolution before morning." - President Andrew Jackson.
Many people know about it now, but they don't have the wealth to even represent a minimum threat to the bankers or governments.
So Jackson is wrong.
This is exactly why the mainstream media and institutions obfuscate economic and financial systems as much as they do. To stop the masses from understanding what's really going on. That's why channels like this are so valuable.
Wow great information Richard. I guess thats also why bail ins are legal in times of a declared emergency. On a different subject I found it very interesting when I looked at the signature line on a check. In America anyway its not a line. Its a series of very small words you can see under a magnifying glass.
Credit in your bank account..get it out of the bank now, if its a positive balance, put it in Metals..GOLD Silver which is real money.
Though you can't really spend the real money you have to convert it back to the debt tokens somewhere.
@@Enzo012 Yes, you can purchase used coins from Royal mint, they have a value in silver.. and GOLD Sovrereign, is acceptable all over the world..Also changing your FIAT into Gold & Silver will maintain its value.. as FIAT money is depreciating by day..Gold & Silver will appreciate as the years go by.. its a safer way to hold it, physically or in a Vault.. like Bullion Vault.
I agree entirely, Gold itself IS a currency and has been for thousands of years...ask King Midas!
@@Enzo012 Wrong.. Most people will barter goods for gold or Silver.
@@netthawk5635 Sure but that's bartering not spending. Legally you could spend bullion coins for their face value but that wouldn't be remotely the value of the metal.
also, YOU don't give the bank your money, your EMPLOYER credits the bank of your nomination, the value that you have earned.....
"you've got no money in the bank"... I don't have any money.. you don't have any money... the bank have even less!!... 😂😂
and the bank does not lend your money. When it lends it creates money for the borrower -an asset- but the borrower is also in debt to the bank. When the debt is repaid the borrower also has to pay interest which is the income of the bank.
Amd once the loan is repaid, the money disappears
Brilliant description of how money works in the world today.
The monetary system has evolved since 1690, not by natural forces; but rather by the designs of bankers, who profit by their manipulations.
Therefore, what you are experiencing today is not what it was in 1940, or in 1900 or in 1860 etc.
It is important to keep this in mind, that the currency system is still in a state of flux, and ever further manipulated to advantage the banker and politician, and disadvantage further (steal from ) the ignorant common people (99.9%, ) but we the people dont understand this, or the extent to which monetary practices have evolved to steal from us, because in our minds we work for money, our parents worked for money and so did our grandparents, so isn't it all pretty much the same with a little bit of inflation ?
Hell no ! There have been massive machinations and manipulations designed to harvest your work and energy to the advantage and privilege of a few.
And because monetary principles are abstracts that cannot be seen with our eyes, they require mental effort to get our heads around. They are in fact, a completely separate topic to practical daily living, yet they effect our daily life totally.
The first principle to understand is that you have been robbed of real money by successive bankers, because the whole idea of 'Money ' is to hold something of real value as your own property, and to receive something of real value for your labour and productivity.
But you get nothing, you get zero of value. You get paper, or plastic or electrons for your work and efforts, and these, having no fixed intrinsic value weight or measure, can therefore be manipulated and devalued before you even believe you have it, and faster than you can accumulate it. Devaluation through inflation is the insidious tax your vote or will has NO power to address; the banker alone retains that privilege, and uses it to rob you every second of every year, night and day.
You have been hood winked by slight of hand and mind into accepting a constantly devaluing IOU for nothing, all at the point of a gun, because 'legal currency ' means, you shall accept this degrading note alone for your labour, or the armed sheriffs will pay you a visit, and commit further theft and violence upon you, as the state retains to itself the Exclusive franchise to exercise violence. When the State does violence, that's OK.
Your forefathers were paid in real money, Gold and Silver, but the bankers were limited in what they could loan out by metalic money, so they sought to do away with it, and they invented the promissory note, the 'bank note' which promised to be redeemable for a Silver or Gold coin.
They did this to remove the natural restriction on what they could loan out, because new debt at interest is their primary tool of harvest. Then, gradually, they removed the metal altogether, telling you it was for your own good, because now you could have a booming economy and more commerce, and no limitation on how many hours both you and your partner could work .
(The 'full employment' mandate simply means you all shall work all of the time until you die, but in the 1700s 6 months work would keep you alive all year if you owned your land. )
Once they had the Exclusive note printing power, they went to town, printing any amount their bought servants in government wanted, creating the national debt, whereby an unborn child is born in servitude and serfdom to an now $100,000 to $ 150,000 debt to who ?
That would be the share holders of the Federal Reserve if you live in the United States, or the Central Bank in your country, and also the large private banks, for once government abrogated the currency creation power to both the Central and large private banks, they must then go cap in hand to the banks to build new public infrastructure. So now every county, state and nation has indebted their ' citizens' in totally unpayable debts to the currency creators.
Meanwhile after Bretton Woods the Federal Reserve sent its agents around the world to ensure that all Central banks were created in its own image, doing exactly what it does, so no one shows them up, even though quite a few Central banks are not privately owned like the Federal Reserve is, yet they still create ALL new Currency as Debt which indebts you, your children and grandchildren forever.
That is a small taste on the first faulty monetary principle and that's before we talk about the unpayable interest on the new worthless currency that they create for zero cost.
There are 4 faulty monetary principles in practice that ensure 99.9% will live in servitude to the .1%
Unless you educate yourself and then teach your children and grandchildren, you will remain enslaved, 70% of your work goes to the bankers and bureaucrats.
We are all like this then... Something happen and we wake up from this deep sleep. It is called the awakening of human consciousness. Waking up brings with it pain and anger, resignation. But above all a deep desire for truth.
Similarly you don't own your home but only you pay a subscription plan (land taxes, council taxes etc) for the exclusive use.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated.
Being greedy is part of human nature. Who wouldn't be, given the opportunity? This can only happen when you have the power to print money with no limits. No one in this universe should have this type of power, as that is where the true danger lies.
Money was not invented by any single person. There is no specific inventor of money who can make such a claim. Money emerged organically through experimentation, effort, and conflicts, primarily to fulfill human needs. Over more than 5000 years of history, money has been created by humans, for humans, evolving through various stages including testing, wars, and societal developments.
@@KoDeMondo exactly.
Here's a quick primer on what's wrong and what to do about it.
ALL fiat currency is debt, that's the only way the Central Banks make it, whether through government bondage note, or private bank loans.
Bankers have developed four practices that
are unsustainable and catastrophic.
If we dont understand the causes of a problem we will address the symptoms or actors, not the causes.
1st. Large private and Central banks have obtained the Exclusive franchise to create ALL new Currency as Debt, at interest.
An increasing population needs an increase in currency, but it is ALL created as a debt to the Central Bank, bearing interest.
This indebts the whole world, every person, every government, in totally unpayable debts, ( because where can the interest come from) enslaving us all to bankers through personal debt or ever increasing oppressive and unjust taxation, permits, licences, registrations, regulations, rates, duties, fees, fines, levies, surcharges, adinfinitum, of which an increasing volume goes straight to the debt creators, who created it for free. (At zero cost to themselves.)
2nd. Because of the first fault, (wherein a Central bank has the Exclusive franchise to create ALL new money,) and they attach interest to it, (which they do not create) they must continually create more currency to pay the interest on the last round of debts and to resupply liquidity as debt repayments suck the last round of currency they created out of the national economy.
The volumes of the booms and busts of 'credit cycles' are totally unnatural and the economy should follow population growth.
Inflation, (or rather, devaluation through deliberate currency oversupply,) is destructive to all but the rich. There is virtually no limitation on fiat currency creation.
Because successive governments have abrogated the peoples right to create their own Sound debt free money, the state also sponsors inflation by borrowing and spending, 'stimulus ' in the vain hope that they can 'create wealth through debt,' and inflate away past and present debts with NEW DEBT ! 🤪🤪🤪 This robs the people under their very noses.
Adding to this is fractional reserve banking wherein private banks effectively create massive new Currency volumes, (but its only temporary because it's all debt) blowing bubbles (in housing/CRE/stocks) which devalues everyone's savings, work, 401k & pension, by raising all prices. (Which don't return to their former level when inflation reduces, the rate of increase simply slows down momentarily. )
We call price increases inflation, but it's really devaluation of your savings, time, work and while corporations do add to inflation of prices, they generally are Not the primary drivers of inflation. Attacking corporations is becoming side tracked.
Shrinkflation further adds to our reduction and desolation as companies attemptto make the same or more profits than last year.
(Did you know the only time our society gets some real new Currency ? It's when someone goes bankrupt and can't repay the banks what they borrowed. )
The fix ? The first step is to end Central Banks and return to Sound Metalic Money.
This will slow the rate of currency creation and make it much more difficult to devalue our wages and savings by currency 'printing.'
The 2nd step would be to legislate that banks publish their reserve ratio. So if they have $100 million on their books in deposits, and $50 million in loans, that's a 50% reserve ratio. We could legislate a reserve ratio, and by openly publishing this people can choose the risk level they are willing to take.
Along with this we need to legislate an industry to home loan ratio.
This will change banking and we need to change banking, because it is destructive. The banks wont be able to make as much, and that's a good thing.
We need to make money anything the people want, but legal tender must meet Metalic standards under the office of weights and measures, and national and state treasury departments and mints could produce and release real intrinsic value Money.
This will not create inflation like some bankers and their economists would have you think.
It is not who creates currency that drives the Constant devaluation of your work & money, it is THE VOLUME per population/ productivity.
The banks increased the base currency supply by over 65 % since March 2020 & 300% since 2008. This has been greatly multiplied as deposits were rolled back into real estate loans creating bubbles, which further lever up equity to back more loans.
You can't spend it off planet, and we've had no increase in population or productivity. How can it not devalue our savings, wages and retirement funds by a similar % as it enters the economy ?
3rd problem. Fiat currency whether paper OR DIGITAL has no intrinsic value, thus it cannot be used as a long term store of value, particularly in an ever expanding fiat system. Taxation and the 'legal' currency label attached to fiat creates artificial demand for fiat currency. This is the 'Force' component of Fiat currency, wherein you are forced at the point of a gun to accept worthless paper or electrons for your daily work. Metalic Money is the currency of a free sovereign people. Fiat at Debt is the currency of slaves.
The fix ?
Return to Silver, Gold, Copper & Nickle currency, designated by weight, not cents/dollars. These will find their own local value. These can't be printed to oblivion, have intrinsic value, and are a safeguard against bankers counterfeiting. Continue to keep the manufacture of Gold & Silver rounds by private mints & foundries to help keep government mints honest.
Do not allow bankers and economists of the current system to con you into believing there isn't enough Metalic Money. You float its value, mint it by grams and ounces and you have a Gold and Silver backed currency. Same with Copper & Nickle. Mint 10th ounce, 2 10ths, 5 10ths and 1 ounce and grams in 1 grams, 2 grams, 5 & 10 grams. Never give it a 'value number,' which is a lie. Give it its weight & purity, and let the market decide what it will buy. Call it 'slow money," like 'slow food.' It's slower for sure, but it's 10 times better for you.
If you think there's not enough metal, live more like the Amish and there will be plenty. We are a totally wasteful people and that can't go on forever. Everything we manufacture should be recycled at end of life. No more landfill.
Probably necessary to nationalise mines & pay shareholders out in metals. We are aiming at a more just, more perfect union, and that requires we treat shareholders justly and make them whole while preserving a mining and exploration industry. So gently, thoughtfully, carefully on this one.
4th. The 'World Bank' and IMF are your friendly international arms of the Federal Reserve, who loan worthless US currency invented at zero cost to enslaved nations of people to purchase necessities, when their own commodities or worthless currency would do just as well. This ensures the indebtedness of nation's simply to survive. I suggest a goods and commodities exchange between countries, with a quarterly settlement of shortfalls with Gold or Oil/Gas. And oil and gas are not the monsters they are made of to be, and may well prove to be the greenest energy sources other than hydro. Studies suggest making an electric car requires the moving of 500,000 lbs of rock/soil, (which is only possible with diesel and oil) so the real energy footprint of a battery that has a 200,000 km life could easily prove to be twice that of a clean running low emission gasoline vehicle with a repairable engine, and LPG is extremely clean due to less carbon atoms. (3-4 carbon atoms, vs gasoline at 4-12 carbon atoms.)
This research is present and ongoing.
Correct these 4 Principles and >80 % of a nation's problems would disappear.
Do not allow your masters the Debt slave creator's to tell you it can't be done. They are not seeking your best interests, but theirs. It is easily done, it's just a different but far better system.
Beware. The FED, IMF, WEF wants you totally enslaved with Digital currency.
Convert your garbage fiat currency into Gold and Silver while you still can, or prepare for destruction.
Come to think of it, you better prepare for destruction anyway, because humans are animals and always learn the hard way.
The bankers motto is : 'Preserve your Capital at all costs.' The bankers are buying Gold. We the people can afford Silver.
Good luck.
What we call Money is actually just a currency. Only gold is Money. That's why central banks store gold to guard against inflation.
I agree but I guess you could say bitcoin is joining the game as money.
Blackrock is buying up BTC at a crazy rate!
Central banks are the sole cause of inflation, so them hoarding gold is not to guard against inflation but to actively control the market value of the gold.
@@gofres BTC is actually a token of decentralized service and not actually decentralized money. It is amount of resource which went into solving complicated math problems. The only proper way to measure money is through a non-perishable commodity.
As for BTC, with advancement of technology services get cheaper and so there is no proper way in which service based token can be considered money for its worth should technically go down withe advancement in technology--just like cost of labor goes down when there is abundance of labor in the market. This explains lesser coins being mined, but that doesn't explain value of BTC going up.
Having said that, I own a tiny amount of BTC so that I can do online transaction if I need to buy something in future. But, by and large I am skeptical about all cryptos and digital currencies.
BTC IS the purest form of money!
@@EnglishVeteran How? Please elaborate. Because as far as I know you cannot liquidate it.
The £85,000 is per banking license. If, say, two bank brands share the same license, then you're only covered £42,500 for each.
That is not correct. You are covered up to £85000 across the two and not £42500 each. There is a difference.
Erm no two banks the share same licence. If you are talking about two bank branches, then they are part of the same bank and you can have only one type of account with them, of course there are other accounts with the same bank. So if you have £100k in one account and another £100k in another in the same bank, that is foolish as the accounts will only be accounted for a part of the same bank - thus £85k is protected not £200k. But if the other account of £100k is in Barclays then £85k is covered. So that is £170k protected.
If money is a 'statement of debt', and the bank owes me a 'statement of debt', then I do have money in the bank.
2:23 There isn't money floating around, there's debt floating around, because all money is debt. Therefor, it is money floating around (money = debt).
It's untrue to say:
X = 'def of X'
X doesn't exist, 'def of X' exists.
because
def of X == X
2:48 This is why you say 'tax doesn't pay for government spending', and why that statement is also untrue.
Tax is the process of 'canceling the governments debt' created by government spending. Therefor, tax does pay for government spending, through the process of 'canceling the debt'.
Michael Hudson has also made this perfectly clear. Thanks to Richard & Michael.
Thank you for making this video. Would you consider doing a video about bank bail Ins.....as opposed to bank bail outs ?
Great video and some very inspired comments here. The use of analogies like Mary Poppins and Alice in Wonderland are helpful. I like the Wyle E Coyote comparison: We can all defy gravity until we look down and see the canyon yawning beneath us. Hence the collapse of Northern Rock, Bear Stearns etc. It all works as long as we believe it does - until we don't and then it doesn't! Keeping it mysterious and obscure allows those that understand it to hoodwink the rest of us and work what is essentially a system of flowing debt to their advantage. Explaining it in terms we can all understand, nibbles away at their power. Excellent start to the series.
charlie
Alas Black Rock is very much alive and killing. Northern Rock?
@@edwardmclaughlin7935 Indeed. A senior moment, perhaps. Thank you for pointing that out.
And they can deliberately show us the canyon beneath us from time to time for example in the stock market and blame a certain event as the cause for a devaluation in a given stock. This will be followed by the view of steps leading back into the sky for those who were able to break their fall on the way down.
Similarly and sorry to keep repeating this concept to anyone here, you don't own your home but only you pay a subscription plan (land taxes, council taxes etc) for the exclusive use.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated.
Money was not invented by any single person. There is no specific inventor of money who can make such a claim. Money emerged organically through experimentation, effort, and conflicts, primarily to fulfill human needs. Over more than 5000 years of history, money has been created by humans, for humans, evolving through various stages including testing, wars, and societal developments.
For every debt there exists an equal and opposite credit. When the credit is returned (in the form of repayments and taxation) the debt is reduced. What concerns me is asset price inflation locking that credit away so that it can’t be repaid. Housing and share markets-I’m looking at you.
The 85.000 pound Guarantee if the Bank Does go Bust will be only accessable to about 10% of the depositors IF THEY ARE LUCKY!!
Since banks don’t need or use deposits to make loans then what happens to the money people deposit?
Its kept as data. A bank statement is just a ledger. The only thing is people can call on their debt at any time. If a lot of people do this at the same time, it leads to a bak run and then a bank probably cannot cover its costs
@ let us suppose that I deposit $200 in cash into my savings account, what happens to that money?
@@MicahBanks-m4t That I'm less sure on. Again, I think it's a ledger of debt a bank owes to you. The difference is this time they are paying interest on it, ot at least are promising to at a certain time, say once per month.
@@joecurran2811 for paycheques and things of that sort you’re right, the balance is just a reminder of how much the bank owes you. I think The cash someone deposits probably just sits there and is given to someone else when they need to withdraw cash.
Very well explained👏🏾 Thank you👍🏾💥🇬🇧
⭐️ Thank you
There is NO MONEY - Only Titles & Claims - 10 Rules of Commerce
Titles are property rights & Claims are debts issued by a titles holder, a secured debt backed by property rights, secured-rites, securities.
Banks exchange securities for units of account, hence a de-posit (to-place) in your account.
Banks don't lend money, they exchange your private IOU's (promissory note) for units of account. (Usually secured by titles directly, ie property rights or indirectly via a floating charge (lien) on your Legal Estate)
Excellent explanation. The government actually owns all the debt and guarantees that debt. Debt is what is issued from the King or centralizing forced to the banks, creating bank debt guaranteed by the government backing it. It all started with writing accounting practices back in Sumer on clay tablets, as the King wanted to build irrigation canals to increase crop production and fertile land. He did so by issuing debt to a farmer who used his spare labor after farming to dig canals. As a result of that work, the king through accountants sent out regions issued debt to the worker who volunteered to dig and expand the canal system. That debt was first symbols to trade in at a market, and then was alphabet letters to make those symbols more abstract and easier to spend on anything and not what was just represented by the symbols, like beer or wheat. Today, workers still get paid in debt, after they work two weeks or a month, the employer then owes them the debt they worked up and pays them that debt.
note debt is not canceled rather discharged. the legal name on the bank statement is issued by a legal entity hence not your name. the legal name is in fact the bank/banker.
Thatcher started confusing Government money as household money.
@@twogsds ?
@@Celticcross688 I had 2 German Shepherd Dogs at the time I set this up.
All my currency is in Shell money (tabu), but nobody wants to take it,they keep asking me for pieces of plastic with numbers on it.
In Australia it says Legal Tender.
The banking situation is a reminder that Fed hikes are having an effect, even if the economy has held up so far,” It’s precisely at times like these that investors need to be on guard against the next certainty. First SVB, then signature bank and now first republic bank, these are all the signs of yet another 2008 market crash 2.0
Sincerely it's best to seek an advisor right now, unless you're canny yourself. As a business owner in both the service industry and eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money.
Please can you leave the info of your investment advisor here? I’m in dire need for one
@@Sofiapaate Willy Wonka, that's his name. Look him up for great financial advice!
I'm highly suspicious of the run on Silicon Valley Bank. The cause seemed to be the mass panic spread on social media by Peter Thiel who has strong connections with Donald Trump. What it really illustrates is how easy it is to cause a bank run with just rumour.
This was a very good explanation of this topic! 😎
And as a consequences, the whole of public debt then is clearly being the "money" of the private (or rather non-government) sector.
Paying back all the public debt is not only pointless to do but would de a Desaster for the private sector.
"Money" is not growing on rich people or produced by companies or workers.
It all comes from the government/treasury/central bank, which essentially are one entity
Explanation
Quite right. But it's workers who produce the value which that money represents.
@charliemoore2551 yes indeed! So that is why we as a society can and should only spend for and build what workers can actually do or what else required ressources are (or can be made) available.
Not spending to much money on non-productive stuff, not on to scarfe ressources bit also not telling around there is not enough money, wenn capacities are still greatly available (companies producing below 100%, workers still unemployed) - that is where we ate now in many countries
@@JB_inks sorry 😉
@@ProgressiveEconomicsSupporter forgiven
First time I told someone this I was shocked to find out this person really believed the bank held the cash that had been deposited. And this person was over 60.
Yeah normally i get a lot of insults when i tell people it.
I'm called a cooker,a tinfoil hat wearing, conspiracy theorists.
We are all like this then... Something happen and we wake up from this deep sleep. It is called the awakening of human consciousness. Waking up brings with it pain and anger, resignation. But above all a deep desire for truth.
@@KoDeMondo Now labour is saying there is £20 bn black hole in the government's budget = austerity. You get Owen Jones trumpeting his own forecast and ignoring the fact that the government creates money out of nothing. He says the government need to raise tax to get funding. He is a charlatan and part of the problem. ruclips.net/video/3jnFYQww4j8/видео.html
There a millions and millions of people around the world who still think that their money is stored in little boxes in the bank‘s vault labeled „John‘s money“, „Mary‘s money“ etc.
People show learn the Bill's of Exchange Act 1882 and learn to discharge that DEBT.
Precious metals and gem stones are like bank notes and coins merely tokens assigned values by those holding the debts owed to them.
That’s rubbish, if you own gold it has no counter party risk. It’s your money not currency ie debt. Perhaps I’ve misunderstood you?
@@garryallison4716 Any material taken out of the money system would be given an arbitrary valuation by the holder and anyone considering a trade for the material.
For example following a major nuclear war it would be safe food and clean water that would be more valuable than gold, silver and diamonds.
Try paying your taxes with them. They aren't liabilities of the government.
A fascinating bookkeeper's reality of "money" but I'm left wondering "so what?", how does that knowledge impact on our day to day lives, what needs to change?
Well as I come to this from a crypto background I can give you one example. Hypothetically, If I own say 1 Bitcoin. I don't keep that in the bank as the bank doesn't guarantee that I will be reimbursed if they go under and the UK government only covers it up to £85,000. So I self-custody it, so I'm not reliant on any institution not going bankrupt. I hope to retire on that 1 Bitcoin in 12 years by which time I might expect it to be worth £1 million pounds but probably more which the government at the moment won't cover. I've bypassed the risk of the banking system and currency devaluation at the same time.
TLDR: The money you put into the bank is no longer yours, so don't assume you will always be able to get to it. Unlikely in a fairly stable economy like the UK but happens all over the world to less stable economies, like the USA.
@@aries6776thanks but, having owned Bitcoin, I’d have no expectation it’ll be worth anything in 12 years time, or even next week.
So glad I spend my debt. They get my debt and if the banks all burn down,I still get to keep my goods.😊
Very good 😊
A bank must issues an account statement as a legal requirement so if you have money belonging to you in a bank account how does the bank state you have no money in your account when your statement shows otherwise?
The statement is what they owe you, not what you own. It's their liability unless you draw it out as cash, then its the governments / BoE liability.
Its interesting to think about, but not much more than an academic trifle. If cash were a bearer bond, you could rightfully not take a note from the street to the police station. Gold you dont possess is a record of debt from the holders precious metal stock. In both managed and held, it's one word from the govt. away from being illegal to trade or requiring immediate forfiture, as has been done previously.
Interestingly, this IOU message is nowhere to be seen on a 20 EUR bill. So I guess the EU or local governments see no reason to pay us back 😁 BTW, did anyone send Rachel Reeves a link to this series? She might need it...
There's no "IOU message" on a dollar bill, either. Once upon a time, there were "gold certificate" and "silver certificate" bills, redeemable in the metals, but not in a long time. Money has gone virtual.
Rachel Reeves doesn't need this channel, she has BlackRock advising her on how best to sell off the UK's remaining assets.
What is "the sum of twenty pounds" ? Another promissory note?
1:14 Goverment do NOT issue notes... the BoE.. Bank of England issue the notes.
The Bank of England Act 1946 (9 & 10 Geo. 6. c. 27) is an Act of Parliament of the United Kingdom which came into force on 14 February 1946. The Act brought all of the stock of the Bank of England into public ownership on the "appointed date" (1 March 1946). This was one of a series of nationalisations by the post-war Labour government led by Clement Attlee.
Public ownership = The Government
@jimihendrix991 you are saying public ownership...... government is a corporation.... BofE is PLC.... if BofE is Privately owned.... and government is a corporation... it can't be public ownership?..... in 2011 most countries became bankrupt and formed a new corporation...... America and Great Britain included..... but didn't tell anybody..... well... they did... but in a way nobody would understand .... it's very complex and I'm still researching to understand it..... America filed for bankrupt in 2011 and case was in Maryland Court.... the bankruptcy has to date not been triggered.... it will be triggered when the new finance system... CBDC..... the debt in the case is 14 quadrillion. I'm still trying to find the case in UK.... we have been living in a madeup life for the last 50 years..... and we are about to wake up..... and going to have a headache....
@@johnw6389 proof?
The truth is so scary when you really think about it. We're all just dealing with thin air. Get assets, no wonder so many rich people are now buying gold and other commodities.
Thanks Richard Murphy from Richard Murphy 😊 tadaaaaaah
Very intimidating perspective, I need to read more
Let's remember in this day and age what most people regard as money world wise is 3.5 percent cash and coins, 85 percent credit, the balance in notes like govt bonds iou promissory notes etc. The vast majority of money yes is credit which is a form of debt. All money now is debt. Even bank notes because it says so on the note. We could talk in circles all day but money is debt covers it all.
thank you
No such printed comments on my $20 bill from Canada. It says only ''this note is legal tender''.....!
Convert fiat into Real money,physical Gold and Silver. Times are changing,get prepared,it’s going to get gnarly for a lot of people, the middle class is in the process of being wiped out. Stay safe.
Try paying your taxes in gold or silver. The government will only accept back its own currency or IOU and which it then simply deletes.
@@truthseeker5911 No you could pay in sovereigns and Britannias. Both legal tender, and coincdently money of choice not by fiat, though if you did you would be defying Greshams Law (look it up).
Every time we tried this, it failed spectacularly. Why? Because gold is finite, and if an economy grows, you need more, but you can't have it, so it inflates. Great for the holder of Gold but not for the rest. People who want a return all hold gold, collectively known as gold bugs. They knew this would happen in the early 1970s when Bretton Woods ended partly due to US spending in Vietnam printing more dollars than they had in gold reserves, gold inflating in real terms even though it was fixed at $35 per ounce. Hence, the governments, seeing this was happening, purchased more gold at the $35 rate, knowing that they were more dollars than gold, so it was cheap. The IMF 1967 created a new reserve currency (SDR), fearing the dollar would become worthless and no longer be the world reserve currency. Nixon 1971 abandoned Bretton Woods and let the dollar float, UK 1973. Thus, the bond movie Gold Finger.
From 1914 to 1931, Britain was on a gold standard, which failed due to the 1929 crash.
A finite material in a growing economy will inflate. Infinite Fiat adjusts as resources (finite) become available. Otherwise, inflation or stagnation is a balancing act.
@grantbeerling4396 Eh? Good money should have the following attributes;
Medium of exchange
A unit of account
Portable
Durable
Divisible
Fungible (one unit is the same as the next)
A STORE OF VALUE OVER TIME .
Gold fulfils this role in the free exchange between free people's, no fiat currency ever has (it works for all bar the last point).
As far as growth is concerned, I think we did ok under the classic gold std in the late 19th century up to WE1. The social order was a different issue. What you need is a free market for capital and ideas with no one under any duress to risk the stored fruits of their labour due to it's decreasing value over time.
@@stuartrathbone5403@stuartrathbone5403 Ah, the storage of value via scarcity as an economy grows. Like I said, it's great for gold bugs as they hold all to ransom.
If an economy grows at 2% per annum, it will double in size over 31 years. If the gold volume stays static, then its relative price will double. Fiat adjusts by increasing the money supply as economies grow, which controls its inflationary value. (at preset retracted by interest rates, which is regressive, it should be progressive targeted taxation to retract surplus money to be destroyed).
Fait is the valve, whereas, for gold, inflation/stagnation is the valve via being fixed in quantity.
Gold led to the Mercantile system of who holds the gold and who holds the power, which Adam Smith's The Wealth of Nations aimed to break.
Again, that is why it was abandoned, especially for a hungry war machine.
£85k is safe if the bank goes bust, maybe not , ever heard of the bank bail-ins. Remember Cyprus.
No, £85k is guaranteed. Unlimited should be the guarantee given that banks won't pay out on demand cash.
@John-ou4rm I disagree. Look at Cyprus and the bail-in law
@@richardn2129 The UK isn't Cyprus. There's clear law. Sure, laws can be changed, but in that case anything is also possible.
@@John-ou4rm www.gov.uk/government/consultations/bail-in-powers-implementation-including-draft-secondary-legislation/bail-in-powers-implementation
Worth a read. I’ve only just skim read it. Looks like the 85k is protected but may be listing as a creditor. Would also need to look at the 2015 act as well to see what the state of that is as well.
@@John-ou4rmjust look up Bank of England bail in on their website.
If shares are held by a bank, eg in a stocks and shares ISA, am I entitled to those shares if the bank goes bust?
Great video Richard . Why don't you next explain to your viewers about the up coming bank "bail ins" when the next GFC comes.
Gold and silver in your own possession are the only true money.
It all went downhill when we came off the Gold Standard😢
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances because even the bank is insured, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
Honestly you may never know the value of that £1 you have until you go bankrupt, the bad experience I had last year really made me feel that our school curricula should contain more financial knowledge and education. It is never enough to have a good job, a huge salary and all the luxuries at your disposal. But saving money and investing it wisely is never a bad idea,... I learned how to invest, no matter how little, but life really believed it show me the hard way. Thank you for the nice video its always interesting to watch your content
Sometimes, it's not about having a talent, skill, or passion. But what if I told you that with the right investment, you can still achieve your goals? No talent, no skill, no passion, but good investment can bring you financial freedom. Don't underestimate the power of smart financial decisions!"
Understand your financial needs and making effective decisions is very essential. If I could advise you, you should seek the help of a financial advisor. For the record, working with one has been the best for my finances....
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited $560k in gold last year under the guidance of my Financial advisor, I'm selling? Absolutely not.. I am going to sit back and observe how this all plays out.
Obviously i keep wondering how people earn money in financial markets, i tried trading on my own made a huge loss and now I'm scared of investing more...
So, why is the compensation limited to £85,000? If we entrust our money to the banks there should be no limit, imo.
Because if a bank goes bust, the government would have to bail every penny out.
Yeah! & I just learned that ird is taking money for tax. Why are they taxing my trying to save for a vehicle for myself
?
You are a bank n go to a central bank saying you have $10,000 in your vault, they create high powered money of $100,000 based on the fractional reserve. Once it goes out again as originally money they can loan out the fraction reverse $100,000, $90,0000, $80,000 until zero of new debt. Yes it’s a debt based system that relies on consumption and people prepared to work and pay off the debt
Thank you, I found that interesting. Question: The silver predecimal crown (5s/25p). and the gold sovereign (£1) are still 'legal tender' but as they hold a component of real value, regarding their silver and gold content, would this coins count as 'real' money rather than a issuance of debt and thus be an exceptions to your argument?
Thank yu
How can I receive it
Really well described! Do you think there woule be interest to go on in the same way to describe risk-free debt, its usefulness in balancing portfolios and the consequent demand for govt bonds?💚
@@AndrewWainwrightPA Yes…
The only risk-free debt is no debt at all
Nice video. Thank you.
Very interesting video.
We are all like this then... Something happen and we wake up from this deep sleep. It is called the awakening of human consciousness. Waking up brings with it pain and anger, resignation. But above all a deep desire for truth.
Gold Britannia and Silver Britannias is where you stake bearer bonds for wealth
Andrew was right all along “MONEY ISN’T REAL!!!”
What about bcci ?…. Great explanation by the way. I’ll pass this on to help educate people
MMM. THAT could ''start'' an Uncontrolable RUN ON THE BANKS
We are into this... After being accumulated 350trillions of debts
'Money in the bank' is just a turn of phrase- just like people say they have 'got a mortgage' when actually they have given a mortgage (a lien on a property). Given that, if you ask your bank for the money, they will give you it, it is not that inaccurate. Yes, they are just transferring it from bank debt to government debt, but it has the properties of money (all four of them) so it is money.
Gold and silver is True Money!
Is there any chance you could remove those subtitles. We’re not illiterate, and YT provide this facility too. You are of course speaking English, and then providing subtitles in the same Language. Weird!
I like the IOU ref
What we need is money that is not onwed or controlled by any government has no ceo Doesn’t need a bank to transfer peer to peer has a fixed supply so can not be inflated by government can be secured in a cold wallet. Does anyone no of such a thing
Sorry, how does paying tax to the government repay the 'iou' that you say is the government's debt to you printed on a bank note?
That note you hold is an IOU that you can use to exchange for itself at the bank 😂. The fact that most money is debt is because they allowed the banks to practice Fractional Reserve Banking, which banks can “lend” new money out to borrowers (ie new debt creation) even when they don’t have the physical stock of money. Effectively, we don’t need humans working at the banks since all these debt contracts can be handled by computers.
All true.
I was feeling a little fed up with the Labour Government with State Pension means testing and their access to all our bank accounts , this has really cheered me up considering it's a load of semantic bollocks.
It could get worse if the Bank of England get their way and bring in a Central Bank Digital Currency to replace paper money. They will not only be able to see every single transaction you ever make or receive but they can if they want to stop you buying that new car or that box of wine. It's in the research phase now but they look determined to bring in a CBDC. They won't have to rely on interest rates to deter us from spending to bring down inflation, they can do it directly by throttling your spending with the CDBCs.
This was a Dorothy & Totto moment! My head is spinning! And I bet the idea of gold as money is just as jarring!!
If a £20 note is only a promissory note by the bank/govt to pay the owner of the note £20, what then is the actual £20?
The £20 pound note is not £20 pound sterling. The bank or government will not give that in gold or silver the real value they will only give you £20 pond note or equivalent, not the actual £20 pound sterling which is more that £20 pond note. The same goes for banks when they get bailed out the government lets them credit your or their account a £20 pond note not £20 pound sterling You won’t ever get £20 pond sterling which has increased in value over the years. £20 pound note and £20 pound sterling are not the same thing. Just like in the US, $20 dollar note is not the same as $20 dollars, even though they look or sound the same theres a difference. Example, $1dollar silver is more than $1 dollar note, they use to be equal until 1933. If you have a $1 silver dollar and $1 silver note in your hand they seem equal in value to the eye, now bring them to a bank and the bank will give you a regular $1 dollar note for your $1 silver dollar note but your $1 silver dollar meaning coin it’s value is silver market rate etc same goes in the UK. They use to exchange for equal value but bank runs are what changed the laws and government stole your money and gave you debt notes worthless pieces of paper that they use to keep you in debt. The governments keep two sets of books one for the bank “ debt’ notes and one for the real money gold and silver. Just read about what happened why the change in the law in UK /US and you’ll see that you’ve been pirated. But was done for good reason at first to keep bank runs from depleting a countries real money supply. When countries settled their books with each other that’s done in gold and silver when banks and governments settle books with each other that’s done with notes when you and banks settle books that’s done with notes. This being the real fractional reserve is gold and silver that’s why the US for example has only about 3 trillion in notes in circulation and the 40 trillion is book money “milk money “ just ledger entries of debt, which makes about 300 billion in gold and silver as the fractional reserves on the government books. Fractional reserves for government, central banks, and commercial banks have different laws and must be held in different forms of money species. In short their trying to bankrupt everything.
I have burgled more than one. Why should I let a bank do it legally ?
So when I get paid it's a loan from who?
All money is created by the banking system itself and all of it is created as debt; therefore it is a loan from whatever bank first issued the money in question. In truth it doesn't matter which bank specifically is in question; what matters is that it all has to be repaid - and that happens through taxes that you pay.
Gold is money.....everything else is just debt. It's scary that people have so much trust in the internet. Just because a major bank hasn't recently crashed here in UK dosen't mean it can't happen. Keep using "cash".
I know I've got no money in the bank! There AREN'T any banks anymore, lol!
Do you have any thoughts on the idea that many of us have a lot of money of which is hidden from us. Something to do with Birth Certificates / Registering births. An amount of Gold attached to our Name.
Love your channel, Richard, but can't help feeling that economics is a sort of Alice in Wonderland affair. The 'creatures' that inhabit it appear quite comfortable with the topsy-turvy nature of it and are very happy to explain it to all us 'Alices' in terms that are very difficult to relate to any reality. In the 'real' world I get paid for doing some work for someone else which gives me the ability to pay someone else for goods I want or need and because I accumulate more than I need at pay day I give it to the bank to stop someone else rummaging under my mattress and making off with it.
Because at some point in history the Madhatter and the Dormouse decided to print some words on a bank note that expressed their view of what it represented does not make it any more definitive than the words on the Dollar bill "In God We Trust" proving the existence of Santa Claus! (Miracle on 42nd St, if you haven't seen the film).
When did we depart from the sane world and swallow the 'shrink me' potion?
As a lifelong Alice fan I love your comment and I know exactly how you feel.
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We departed from the sane world in three stages: partially in 1913, a bit more in 1944 and then fully on August the 15th 1971 (temporarily, you understand).
@@edwardmclaughlin7935 Call me an old fuddy-duddy but I’d quite like to get back those days untroubled by economic theory…
@@abody499 It happens to us all on RUclips and it's often very difficult to know what triggers it. I've learned to be very careful - on pro-Ukraine channels for example not to use words that relate to hostile actions, depriving people of life etc - but even so I lose 25-30% of my very well considered, non-inflammatory comments on all topics, including once praising a curry recipe!
I'm grateful to RUclips for making so much material available, but the experience is marred somewhat by this irritating factor. Now to see if this one is removed...
@@abody499 Thanks for letting me know. I myself have deleted the second version!