There is a fascinating 5 part series about "How Money Is Created". Although there is some "conspiracy theories gone wild" slant to it -- it was very informative nonetheless IMO. You don't have to view all 5 to get the gist of it (though I ended up clicking right through each one)

1. Corrupt Banking System - Cartels Robbing the Public
YouTube - 1. Corrupt Banking System - Cartels Robbing the Public

2. How Money is Created
YouTube - 2. Corrupt Banking System - How Money is Created (2/5)

3. Money is Debt
YouTube - 3. Corrupt Banking System - Money is Debt (3/5)

4. Monetary Reform
YouTube - 4. Corrupt Banking System - Monetary Reform (4/5)

5. Warning About the NWO
YouTube - 5. Corrupt Banking System - Warning About the NWO (5/5)

Wonder what people think about this, how money is "created", corruption in the banking industry, etc.

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Nothing new here. The whole western economy has been predicated upon debt for a couple of centuries now.

What would you propose as an approriate course of action to deal with this "problem". It is certainly the case that inflation financed What would you propose as an appropriate course of action to deal with this "problem"? It is certainly the case that inflation financed spending has lead to like the hyperinflation we have seen in instances such a post WWI Germany. There are a series of other problems that are generally thought to arise when the government controls the central banking system. The solutions suggested by the source you provided are therefore not an appropriate course of action.

Given the time value of money, a real concept given the current economic behaviors of individuals, would mean that zero interest loans would be infeasible. There would be economic inefficiency inefficient allocation of productive resources.

There is only one real choice if we wish to correct our monetary problems. We must end the Federal reserve charter. We must halt fractional reserve lending. We should print up new dollar certificates in multiple denominations for the amount of gold, silver and platinum we have in Fort Knox and all other treasury depositories. These "certificates" would be transferable into gold silver or platinum on demand at any U.S. treasury. We should close the vast majority of U.S. Military bases on foreign soil, while re-opening the majority of U.S. bases on U.S. soil. We must stop giving billions of dollars each year to foreign countries like Pakistan, Afghanistan, etc. We must dramatically reduce the number and size of the Federal governments agencies and bureaus. We must end the war on drugs. We must wean the country off Federal welfare.

These are a few of the essential steps that must be taken if the U.S. is ever to see daylight financially again.

The only thing in Fort Knox is dust.

As to the rest of your ideas, I applaud them.

I do not know if it is possible to go back to a Gold standard. I would like to think it is still possible, but with a 10 trillion dollar national debt and with the US 30-40 trillion in the hole for future payments, I am not sure if ti si possible to go back to a gold standard.

I do agree that abolishing the Federal Reserve is a top priority, if we ever want the US to have a chance to be solvent again.

So, basically, we need to end all trade, dismantle the modern world and return to medievalism?

I dunno, I've become real attached to modern conveniences like food and heat.

But what is the alternative? To continue a system in which the economy and the value of currency is based upon confidence? On the other hand a switch to the gold standard would simply reveal the actual real value of the currency, and that would not be a pretty sight. The expression 'rock and a hard place' comes to mind.

You may wish to see here to understand the absurdity of a system built upon confidence.

Probably the most important part of this series is still completely unknown to the general public - your 401k account...and how they were all robbed blind for the past 5 years - and everyone knows it, saw it happen, and did nothing.

The devastating effects of the corruption between Wallstreet, banks, FED-SEC, investment firms and finally both the executive and legislative branches will someday be in every history book in America.

Don't count on history recording these events.

History is written by those in power.

Norman Dodd explained to us how history is now recorded........

"The Carnegie Endowment takes on that aspect of education which is a domestic in its relationship. These two run along in tandem that way, disciplined by a decision - namely, that the answer lies entirely in the changing of the teaching of the history of the U.S. They then approached five of the most prominent historians in this country with the proposition that they alter the manner of the teaching of the subject, and they get turned down flatly; so they realized then they must build their own stable of historians, so to speak."

They approach the Guggenheim Foundation, which specializes in Fellowships, and suggests to them that when they locate a relatively young potential historian, will the Guggenheim Foundation give that person a Fellowship, merely on their say-so and the answer is, yes they will.....And that becomes the policy which if finally picked up and manifests itself in the expression of collectivism all along the line, of which the dividing of this country into regions, using all of the logic which supports the ultimate idea that in order that regional government, in turn, be effective, there must be a new Constitution of the United States."

Regional Governance | Norman Dodd Testimony on Regionalism

The "solution" which many of you have asked for is simply the repeal of legal tender laws and the abolition of capital gains taxes on commodities, allowing for the use of competing currencies. Not much of an effect if us conspiracy theorists are right, but a saving grace if our money system ever goes to the shitter. Seriously, legal tender is bullshit. "You have to accept this printed funny money, or go to prison."

Anybody else read "The Creature from Jekyll Island"?

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Weiner.

Good post.

The liberty dollar was a great idea, but too bad the people are too brainwashed to understand the importance of sound money.

It really kills me how only a TINY PERCENTAGE OF AMERICANS HAVE EVER BOTHERED TO STUDY BANKING AND MONEY.

I mean, what does it take to get through to people?

Considering Americans focus much of their daily energy towards making money, I would think that spending a small portion of time every week, learning about money and banking, might be a good investment.

It is almost like there is some irrational fear of learning the truth.

It's like people know they will not like what they learn, so they CHOOSE to remain ignorant.

It's is very frustrating.

Not even a paper by former FED chairman Alan Greenspan on Gold and Economic Freedom can pique their interest.

I wish I could figure out what it takes to get people to educate themselves on this topic.

Alan Greenspan - Gold and Economic Freedom

I know most of the regulars at every American political forum on the web have heard of this paper by Greenspan.

Yet I would bet only a tiny percentage of those who have learned about this essay have even bothered to read it.

It is hard to fight against a lifetime of conditioning.

People have learned how to dismiss the truth.

The Federal Reserve, which it seems most posters (on this thread) have a grasp, is THE biggest threat to future liberty on this planet. The independent bankers that own this sytem will try to lay claim on all the assets that exist. All of the other issues are just window dressing. Will the People have enough guts to take this back, or will they surrender quietly into slavery?

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International currencies have been running by fiat, or the stability of said countries' economy, for quite some time. The reason the dollar has been so valuable is because people trust our economy to continually grow and produce the physical value that our growing money supply requires.

The whole "debt as money" concept as promoted in the video is indeed responsible of the record growth of our economy in the last half-century, and the economic growth of the Western World (and Japan) at large. There is only a limited quantity of gold on the planet, and as our world economy, and national economy grows, a gold-standard would required the increase in value of gold to represent our value produced. The lag in between gold prices and economic growth causes a lag in the market price reaction, thus limiting growth.


In essence, the non-gold standard currency the world employs allows for rapid growth, but is more fragile in the long-run. Indeed, an inflation rate of a couple percent is optimal for economic growth, so that commodity prices are maintained during periods of positive growth, so as to prevent economic loss due to price panic. To freak out about the lack of a gold-standard without addressing the benefits of such a system seems unwise. Of course, you are right, the majority of Americans don't want to touch this topic with a 10 foot pole.

For anyone who doesn't quite understand what I am saying in the above, let me put it this way. Modern banks are using future growth and creation of value to pay for loans they are giving out today. In the event that the growth doesn't happen and people panic, the bank could easily collapse. However, the creation of the loan allows the borrower to create growth that would otherwise be impossible.



As a result, as long as the economy keeps growing, the system will not collapse and the economy will expand at an exponential rate, along with our gross debt. Not a 10 year period has passed in the past 100 years where the US economy is weaker than at the start of the period, Great Depression included. If we were to go back to a fully gold-backed banking system, our economic growth would slow down, but our economy would be better prepared to survive a political collapse.

Which is better? It depends on who you are and how much you like to go to vegas

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"The quickest way of ending a war is to lose it."
- George Orwell

The idea that a fiat currency is necessary to support the needs of modern commerce has some merit, but it's an overstated argument in debates about monetary policy, used as a way to dismiss the "hassles" of the gold standard.

In actuality, we witness commodities adjust to market conditions sometimes faster than other units of account. (i.e. currency) If our currency were based on the amount of gold mined from the earth, the mining business would see booms and busts in line with the macroeconomy.

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Weiner.

This is why no one wants to talk about the national debt and the "real" national debt.

No, let's just ignore the problem and hope it goes away.

Meanwhile, our jobs are leaving by the hundreds of thousands, we are being invaded by illegals, our schools are a joke, sex and entertainment dominant most media and many aspects of our lives, but no one seems to care about the SIMPLE FACT that if we don't do something about the national debt and future obligations of the US taxpayers, WE ARE SCREWED.

[i] * "In fiscal year 2004, the federal budget deficit increased and the long-term outlook worsened significantly. The unified deficit was $413 billion, or about 3.6 percent of the economy. This deficit includes $151 billion in Social Security surpluses, without which the deficit would have been that much larger.7 Indeed, the on-budget deficit for fiscal year 2004 was $568 billion, or 4.9 percent of gross domestic product (GDP). Fiscal year 2004’s deficit followed upon several years of increasingly negative federal fiscal outcomes.

In addition, as the Fiscal Year 2004 Consolidated Financial Statements of the U.S. Government show, in fiscal year 2004 the federal government added $13 trillion in new liabilities, unfunded commitments, and other obligations, principally due to the new Medicare prescription drug program. The federal government’s net liabilities, unfunded commitments, and other obligations now amount to more than $43 trillion, or about $350,000 for every full-time worker, and these unfunded commitments are growing larger every day. [Page 6-7]

* "If we assume that all tax cuts remain in effect rather than expire as scheduled under current law, and if we further assume that for the first 10 years discretionary spending grows with the economy rather than at the rate of inflation, a dramatically different picture emerges. This simulation is called “Discretionary Spending Grows with the Economy and All Expiring Tax Provisions are Extended.” (See fig. 2.) Under this alternative simulation, by 2040 the government would have only enough money to pay interest on the federal debt!" [Page 8]

F U G O P : Comptroller General David Walker Dislikes GWB

So, how will we fix this before 2040?

What if we don't fix it?

Will the bankers "own us"?