The Biggest Scam In The History Of Mankind (You must watch this!)

[Toastiness]

Although it's true money is "created out of thin air" by fractional reserve banking it is also destroyed as debts are repaid. For example if I borrow 10k from the bank to buy a car, the bank creates 10k for me to spend. As I pay off my loan the bank cancels out the created currency.

I think he does address this point, albeit briefly. By paying off the loan you cancel the currency created by the principal of the debt. But in the meantime the interest you have paid on the loan is 'new' money.

I think he has some valid points, however for some people (ie those with large debts like a mortgage and few savings) the fiat currency being worthless would not be such a bad result. The period of high inflation during the 70's made existing mortgages melt as if by magic...

[eek]

I think he does address this point, albeit briefly. By paying off the loan you cancel the currency created by the principal of the debt. But in the meantime the interest you have paid on the loan is 'new' money.

I think he has some valid points, however for some people (ie those with large debts like a mortgage and few savings) the fiat currency being worthless would not be such a bad result. The period of high inflation during the 70's made existing mortgages melt as if by magic...

high inflation removing debts only works if wages keep up with inflation. If they don't those debts become another millstone.

[OwlHoot]

I think he does address this point, albeit briefly. By paying off the loan you cancel the currency created by the principal of the debt. But in the meantime the interest you have paid on the loan is 'new' money. ...

If currency ultimately represents a chain of useful things which one person or group does for another, or the potential thereof, and the population is increasing and most people are doing at least marginally useful things one way or another, with an ever wider variety of materials, doesn't it make sense that new money should appear out of nowhere?

I can't listen to the video at clientco, but that guy's views sound somewhat like the economic equivalent of Creationism. Also, some of the comments, ranting on about Zionist conspiracies, don't inspire much confidence.