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

[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.

[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.

[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...

[tomtomagain]

I watched the programme .... it's a very one-sided "Gold bug" view of the world and totally ignores any contradictory evidence ( like all good conspiracy theories ).

For example.

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.

[scooterscot]

Even owning land and property in a risk as predators are always on the lookout to take it over.

There is a big scandal in the USA whereby ‘reputable banks’ were paying large bonuses to employees for each successful repossession hence people who missed one payment had their property illegally repossessed.

In the UK, there are many older people who own their property outright and survive on a very small income or pension. Because they don’t claim benefits they are not entitled to council tax relief. The cost of council tax (about £1500 for a small home) often leads to missed payments at which time the council can send them to prison or repossess their home. To do something wrong an lose your home, all you have to do is nothing. If you have an empty house, the council have a right to take it over and rent it out and charge the owner for the modifications. Compare this with China where the government have to divert road around a house if the owner refuses to sell.
UK democracy? Like clucking bell. The banks and Capita run the country.

Ah but my land is freehold. That can't be taken away from me because of missed council tax, well not in Scotland. It becomes even more difficult if the land is held in the name of a trust.

[scooterscot]

Now that's impressive. I admire you for that.

In a brave new world, that makes you rock-solid, imho

I have to agree with what the traveler...

[Paddy]

That used to be the old joke, what do you do? I'm GP. Oh, General Practitioner? No, Get Paid.

The best defence you can have against robbery, as you put it, is education or be land owner. And i'm talking about a measly acre. Only those with something to offer will come out good, those holding onto paper wealth will face increasing hard times.

Even owning land and property in a risk as predators are always on the lookout to take it over.

There is a big scandal in the USA whereby ‘reputable banks’ were paying large bonuses to employees for each successful repossession hence people who missed one payment had their property illegally repossessed.

In the UK, there are many older people who own their property outright and survive on a very small income or pension. Because they don’t claim benefits they are not entitled to council tax relief. The cost of council tax (about £1500 for a small home) often leads to missed payments at which time the council can send them to prison or repossess their home. To do something wrong an lose your home, all you have to do is nothing. If you have an empty house, the council have a right to take it over and rent it out and charge the owner for the modifications. Compare this with China where the government have to divert road around a house if the owner refuses to sell.
UK democracy? Like clucking bell. The banks and Capita run the country.

[petergriffin]

Now that's impressive. I admire you for that.

Nothing special really, in my family we have always had a culture of not living beyond our means, never bought anything on credit. I have always thought it was the standard for everybody until a few years ago.

I don't even have a pension fund because I don't want the money to be stolen by the government.

[EternalOptimist]

If by savings you mean paper money, not much.

No outstanding mortgages, no debts, all paid in cash back in the 80's-90s.

Now that's impressive. I admire you for that.

In a brave new world, that makes you rock-solid, imho

[petergriffin]

Then let's hope you don't have any savings either.

If by savings you mean paper money, not much.

No outstanding mortgages, no debts, all paid in cash back in the 80's-90s.

[SantaClaus]

Thanks for the interesting link. Great quote at the end of episode 1:

"When government's do this kind of stuff to their currency supply, they debase it, eventually it comes back in inflation. People sense the loss of their purchasing power. They rush back to gold and silver and they bid the value of the gold and silver up in the country until it meets or exceeds the value of all the currency in circulation".

Hidden Secrets of Money - Free Video Series on Money Secrets

[scooterscot]

You can tell that something is wrong with the whole financial system when you start seeing headlines stating that work no longer pays.

That used to be the old joke, what do you do? I'm GP. Oh, General Practitioner? No, Get Paid.

The best defence you can have against robbery, as you put it, is education or be land owner. And i'm talking about a measly acre. Only those with something to offer will come out good, those holding onto paper wealth will face increasing hard times.

[scooterscot]

Reminds me: Why did The K Foundation burn a million quid? (part 3 of 4) - YouTube (skip to 10m30s in)

I enjoyed watching that. It goes to show you how addicted we are to this paper stuff. Sure they could have done wonderful things with the cash. Lets not forget there will always be people suffering on this planet. But as the chap said there will still be the same number of apples and oranges on the planet tomorrow.

It used to some of the greatest ideas ever derived were the thinking of one individual. If you has asked them why are you doing that? They'd have replied, haven't got a clue or because it's interesting. We're robbed of chasing progress these days unless you're a scientist willing to live on a crappy salary.

I recall reading the BBC article a couple of days ago regarding the slavery index that indicated those countries where citizens were the most enslaved. India, unsurprisingly, was close to the top. (Yet are amongst the happiest people in the world.) Latterly someone on HYS had the audacity to claim with were a slave with the 9-5.

[Freamon]

Trade is important for sure. But when you start trading you time, blood sweat and tears for a piece of paper that has no value, questions need to be asked.

I agree gold has next to no value yet it's price is high. Your example of oranges & coal is valid only for as long as both supplies appear inexhaustible.

There was a massive fire in a sugar factory Brazil yesterday, nearly 200 tons of sugar up in smoke. Prices of sugar around the world began shooting up. You can't trade that you haven't got but still everybody wants some, so it's value shoots up. And in return I'm offered more of this valueless paper as compensation? When the bottom falls out of the dollar I don't want to be anywhere near it.

Reminds me: Why did The K Foundation burn a million quid? (part 3 of 4) - YouTube (skip to 10m30s in)

[SimonMac]

Watch Max Keizer on RT

That guy is either a legend or a loon, I am haven't quite decided, but its great to watch lol!