May 20, 2013 piemanbeatle Says:
Reality: Some of the bank's loans are repaid+interest, others default. The profits from this are used to provide for deposits+interest
This thing: "Yay! Free money for everyone from my deposits!" said the bank
May 7, 2013 Thomas Jefferson Says:
Then the shackles of fractional reserve banking would be cast off. People don't listen... It is easier to fool a man than it is to convince him he has been fooled.
Apr 27, 2013 Alexei Sorokin Says:
reserves are a liability....
Apr 18, 2013 firefoxxxx11 Says:
To everyone: at 04:30 ask yourself a simple question: what if workers do NOT give their hard-earned 900G gold back to Sal's bank, but stash it in their mattresses instead. Then Sal has no gold to pay 1000G back to the farmers. Sal defaults and the court awards farmers with this half-finished irrigation project (which they never asked for). This is how we all (as these farmers) now own these very cool underwater houses (nice irrigation project... no pun intended).
Mar 24, 2013 Hall Johnes Says:
Sal, why didn`t you address the money that the borrower boss of the ditchers has to pay back to the bank? Did the bank just gave him the deposited gold for free?
Does the ACTUAL existing capital reflect the amount of ethereal gold created from the bank?
Mar 24, 2013 Hall Johnes Says:
This smells like a ponzi scheme. I will watch the next video for the full argument.
Mar 12, 2013 EXALTEDDIRT Says:
Are you good enough to go to heaven?Ever lied?Ever stolen?Ever looked at a person with lust?Ever used God's name in vain?If you have then God sees you as a lying, thieving, blasphemous, adulterer at heart, and you must face God on judgment day.Innocent or guilty?Heaven or Hell?Revelation 21v8 says"All liars will have their part in the lake of fire" no thief, adulterer or blasphemer can enter heaven.you broke God's laws but Jesus paid your fine! Repent turn and trust alone in Christ
Mar 11, 2013 Dizzi Booker Says:
But what happens when all the farmers and workers demand all their gold at the same time ? Then the scam is exposed for what it is: embezzlement.
Mar 6, 2013 nathanf 45 Says:
I think it would of been better just to say money is just an illusion.
Feb 21, 2013 Justice Manley Says:
Hi,
I think this video is misleading because it neglects the fact that in the United States the Fed increases currency in circulation by paying out the loan amounts you're talking about by creating that currency. The bank doesn't actually use the depositor money for loans, and thats the part people don't understnad.
Jan 31, 2013 genghis karan Says:
wassup cant wait for the personal finance vids ma niga
Dec 31, 2012 ThePatriotsWon Says:
Remember M1 was defined as all the money they thought they had. That included the real money M0 and the up to ten times that amount loaned out for profit. When I take a loan out from the bank I never end up with more money after the transaction is complete.
The fact is that debt has to grow exponentially due to the issueing of IOU's off of other IOU's.
I would appreciate your feedback SAL.
Dec 31, 2012 ThePatriotsWon Says:
Sal's expample will certainly look less extreem than the situation the US government is in but you have to take into account the generation effect of promisses to pay on top of promisses to pay. It all ends up in the very same place. The important points to remember are that money does factor into the definition of wealth in a mojor way, and there is such a thing as real money (M0) and real debt (M0 + M1). The M1 is always far greater than the M0 in our system.
Dec 31, 2012 ThePatriotsWon Says:
The debt will engulf more and more people with loans they will never be able to pay. The lower class will necessarily increase. This is because the REAL money supply (M0) is shrinking and the population and infrastructure are growing. The way to get a real understanding of the problem we have and the monitary system that Sal is explaining so well is to let the music stop playing. That is to stop all lending and borrowing and settle all accounts.
Dec 31, 2012 ThePatriotsWon Says:
We tend to think because we usually can pay our bills that there is no real debt problem where we're concerned. It only appears that way becuase our cost of living as compared to the economy and money supply as a whole is relatively small. BUT the fact of the matter is, just like a snowball rolling down hill picking up speed and size, the growing debt will make it more and more difficult to sustain our standards of living.
Dec 31, 2012 ThePatriotsWon Says:
The thing is both examples are exactly the same! We seem to think that time has this magical ability to creat money. IT DOESN'T! The creation of MONEY is the only way to get more MONEY. The only reason we are able to continue paying our bills in a debt based monitary system is to continue to create more and more debt...... infinately. The reason I can pay my debts on an individual level is by taking less risk(loans) and taking more of the money supply for myself.
Dec 31, 2012 ThePatriotsWon Says:
Here is a good way to look at all that Sal is doing such a great job of explaining. If you were $100 short every month on bills and you asked me for a loan and I told you yes but tou would have to pay me $250 back, what would be your first question? How long do I have to pay it back? If I could pay it back over 30yrs that might work right? What if I told you that you had to pay it back immediately? You would look at me lie I had 3 heads. It wouldn't make sense..... right?
Dec 31, 2012 ThePatriotsWon Says:
The new debt would include the $100 that I was short in the beginning plus the interest I now owe on the credit card. HMMMMMM...... so what next? I know! Another cash withdrawal! Only this time I just know everything will work out all right ;0).The problem is that after that $10,000 is gone I will be left with even more debt than after the first loan. Shucks!!! Thats just no fair.
Seriousely though if we want to clear our heads and just think a little we will see the problem is not difficult.
Dec 31, 2012 ThePatriotsWon Says:
The idea that you can create wealth from promises to pay is like saying I can fund my retiremant with cash withdrawals from a credit card. For instance if I were $100 short every month on my debts and I took $10,000 worth of cash from a credit card, I would have sufficient money for quite some time to make the ends meet on my bills (including the interest payment on the credit card. Things would be great until the real money was used up. Then I would have more debt than before.
Dec 31, 2012 ThePatriotsWon Says:
The US economy requires several key components. We need natural resources(X), technology(X), a skilled work force(X) and MONEY(\)...... notice the half check in the money box. True wealth isn't just the stuff we make and the services we provide. true wealth in our system requires all of the above. All of our resources, products and services WITHOUT the money to purchase them is like my car without its ignition key. MONEY is a vital part of true wealth in our economic system.
Dec 30, 2012 Dinesh Khadka Says:
Hi there, at the time I told my girlfriend that I was planning to go make money online, they teased me. But shortly I showed them my profits. Go and Google "Phantom Cash System" to see learn how to make money online.
Dec 28, 2012 Guillermo Barrios Says:
nevermind it's farmers & workers, didn't take that into account
Dec 28, 2012 Guillermo Barrios Says:
So up until minute 5:00 they are basically getting paid their own money?! (excluding apple sales)
Learn more: http://www.khanacademy.org/video?v=nH2-37rTA8 U
Fractional reserve banking and the multiplier effect. Introduction to the money supply. More
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piemanbeatle Says:
Reality: Some of the bank's loans are repaid+interest, others default. The profits from this are used to provide for deposits+interest This thing: "Yay! Free money for everyone from my deposits!" said the bank
Thomas Jefferson Says:
Then the shackles of fractional reserve banking would be cast off. People don't listen... It is easier to fool a man than it is to convince him he has been fooled.
Alexei Sorokin Says:
reserves are a liability....
firefoxxxx11 Says:
To everyone: at 04:30 ask yourself a simple question: what if workers do NOT give their hard-earned 900G gold back to Sal's bank, but stash it in their mattresses instead. Then Sal has no gold to pay 1000G back to the farmers. Sal defaults and the court awards farmers with this half-finished irrigation project (which they never asked for). This is how we all (as these farmers) now own these very cool underwater houses (nice irrigation project... no pun intended).
Hall Johnes Says:
Sal, why didn`t you address the money that the borrower boss of the ditchers has to pay back to the bank? Did the bank just gave him the deposited gold for free? Does the ACTUAL existing capital reflect the amount of ethereal gold created from the bank?
Hall Johnes Says:
This smells like a ponzi scheme. I will watch the next video for the full argument.
EXALTEDDIRT Says:
Are you good enough to go to heaven?Ever lied?Ever stolen?Ever looked at a person with lust?Ever used God's name in vain?If you have then God sees you as a lying, thieving, blasphemous, adulterer at heart, and you must face God on judgment day.Innocent or guilty?Heaven or Hell?Revelation 21v8 says"All liars will have their part in the lake of fire" no thief, adulterer or blasphemer can enter heaven.you broke God's laws but Jesus paid your fine! Repent turn and trust alone in Christ
Dizzi Booker Says:
But what happens when all the farmers and workers demand all their gold at the same time ? Then the scam is exposed for what it is: embezzlement.
nathanf 45 Says:
I think it would of been better just to say money is just an illusion.
Justice Manley Says:
Hi, I think this video is misleading because it neglects the fact that in the United States the Fed increases currency in circulation by paying out the loan amounts you're talking about by creating that currency. The bank doesn't actually use the depositor money for loans, and thats the part people don't understnad.
genghis karan Says:
wassup cant wait for the personal finance vids ma niga
MamaPapaBrooks Says:
gold coins? I wish.
ThePatriotsWon Says:
Remember M1 was defined as all the money they thought they had. That included the real money M0 and the up to ten times that amount loaned out for profit. When I take a loan out from the bank I never end up with more money after the transaction is complete. The fact is that debt has to grow exponentially due to the issueing of IOU's off of other IOU's. I would appreciate your feedback SAL.
ThePatriotsWon Says:
Sal's expample will certainly look less extreem than the situation the US government is in but you have to take into account the generation effect of promisses to pay on top of promisses to pay. It all ends up in the very same place. The important points to remember are that money does factor into the definition of wealth in a mojor way, and there is such a thing as real money (M0) and real debt (M0 + M1). The M1 is always far greater than the M0 in our system.
ThePatriotsWon Says:
The debt will engulf more and more people with loans they will never be able to pay. The lower class will necessarily increase. This is because the REAL money supply (M0) is shrinking and the population and infrastructure are growing. The way to get a real understanding of the problem we have and the monitary system that Sal is explaining so well is to let the music stop playing. That is to stop all lending and borrowing and settle all accounts.
ThePatriotsWon Says:
We tend to think because we usually can pay our bills that there is no real debt problem where we're concerned. It only appears that way becuase our cost of living as compared to the economy and money supply as a whole is relatively small. BUT the fact of the matter is, just like a snowball rolling down hill picking up speed and size, the growing debt will make it more and more difficult to sustain our standards of living.
ThePatriotsWon Says:
The thing is both examples are exactly the same! We seem to think that time has this magical ability to creat money. IT DOESN'T! The creation of MONEY is the only way to get more MONEY. The only reason we are able to continue paying our bills in a debt based monitary system is to continue to create more and more debt...... infinately. The reason I can pay my debts on an individual level is by taking less risk(loans) and taking more of the money supply for myself.
ThePatriotsWon Says:
Here is a good way to look at all that Sal is doing such a great job of explaining. If you were $100 short every month on bills and you asked me for a loan and I told you yes but tou would have to pay me $250 back, what would be your first question? How long do I have to pay it back? If I could pay it back over 30yrs that might work right? What if I told you that you had to pay it back immediately? You would look at me lie I had 3 heads. It wouldn't make sense..... right?
ThePatriotsWon Says:
The new debt would include the $100 that I was short in the beginning plus the interest I now owe on the credit card. HMMMMMM...... so what next? I know! Another cash withdrawal! Only this time I just know everything will work out all right ;0).The problem is that after that $10,000 is gone I will be left with even more debt than after the first loan. Shucks!!! Thats just no fair. Seriousely though if we want to clear our heads and just think a little we will see the problem is not difficult.
ThePatriotsWon Says:
The idea that you can create wealth from promises to pay is like saying I can fund my retiremant with cash withdrawals from a credit card. For instance if I were $100 short every month on my debts and I took $10,000 worth of cash from a credit card, I would have sufficient money for quite some time to make the ends meet on my bills (including the interest payment on the credit card. Things would be great until the real money was used up. Then I would have more debt than before.
ThePatriotsWon Says:
The US economy requires several key components. We need natural resources(X), technology(X), a skilled work force(X) and MONEY(\)...... notice the half check in the money box. True wealth isn't just the stuff we make and the services we provide. true wealth in our system requires all of the above. All of our resources, products and services WITHOUT the money to purchase them is like my car without its ignition key. MONEY is a vital part of true wealth in our economic system.
Dinesh Khadka Says:
Hi there, at the time I told my girlfriend that I was planning to go make money online, they teased me. But shortly I showed them my profits. Go and Google "Phantom Cash System" to see learn how to make money online.
Guillermo Barrios Says:
nevermind it's farmers & workers, didn't take that into account
Guillermo Barrios Says:
So up until minute 5:00 they are basically getting paid their own money?! (excluding apple sales)
BurritoBazooka Says:
Not really..