Topic: The Biggest Scam In The History Of Mankind - Hidden Secrets of Money - page 5. (Read 9184 times)

Maloney's newest video is really brilliant.
I admire him for how he tries to explain and visualize complex relationship comprehensibility.

Unfortunately most people still think this is total rubbish and worst conspiracy theories when they see videos like this.

Thanks for sharing, love the video. Going to share on my facebook too and see what comment I get..

I think most of these are lies that told by reserve banks. Due to the complex nature of "LOAN", maybe only one in a thousand understand how it really works. But looking from the view of the central bank, things are much eaiser to understand

A loan is a very complex operation, it involves several steps:

1. Banks first acquire the base money. Without base money, they can't loan out anything. They can get base money from their own savings, from FED or other financial institutions, when they are running out of base money, they will broke like Lehman

2. Once they had some base money, say $100, they could loan out $90 to the borrower, they credit the borrower's account with $90, at the same time, they must deposite $10 to FED as reserve

3. Since the borrower's account are credited with those $90, the effect is that the money they loaned out are immediately deposited back into the banking system (either in the same bank or another bank), thus the base money never leave the banking system. This happened almost instantly. Now they have the base money back, they could lend those out again, only 10% less each time, due to reserve requirement

But this chicken and egg loop require that they must have base money at the first place. Historically base money is gold, produced by miners, but now it is created by FED, produced by adding numbers in the checkbook

Money and debt are totally seperate concept, banks always trying to combine them together just to disguise their scam. Money is just a measure of the value of the debt, you can pay back the debt using anything like labor, security, assets, etc...

I really loved this video, thanks for sharing it. I even posted it on facebook, and it sparked up a huge conversation between my friends. Way to go OP!

And they used to call Bitcoin a ponzi...

So there is no real money?

It is all debt based on debt with eternal interest compounding on top until mathematically impossible repayment quantities are achieved ... sounds legit.

Thanks for sharing, good stuff to know about it...

+21

This video is really a masterpiece ! thanks for sharing .

The government only becomes indebted when the central bank (or anyone else) buys its debt instruments - rather than the resulting debt.

Nobody can buy a debt only created by their own act of buying it.

Loan or debt means some value to be paid in future, it involves a value in a different time. Without a time axis, it is very dangerous to discuss the concept of loan, because that lacks a whole axis of freedom and you will easily mix different concept together. A $100 can not exist at two points on the time axis at the same time. If it did, one of them is an illusion, banks are creating this illusion to everyone in the name of loan

And, central bank create money to buy government debt, not against government debt, this video explained it very well

Before we can even begin to discuss whatever you are trying to prove, I must make the following observations:

1. Commercial banks do not primarily rely on deposit money, but rather on reserve money created by the central bank against government debt. So the money commercial banks loan is always debt, issued either by the central bank or themselves.

2. It is impossible for the public to keep 90% of commercial bank money "under the mattress" because:

2.1. Less than 3% of the money supply exist in physical form.

2.2. Loans must be repaid with interest, so the public must not only return that money to their creditor banks but also give them additional money, which in turn must be created by the central bank against additional government debt.

It is a very simple process, not that complex as you described. Don't use loan or IOU, it will be much easier to see the truth without them

Notice this: If banks loan out 90% of the deposit and those money were put under mattress by someone, then banks will immediately lose the ability to further loan out any money (money creation through FRB will stop). Although at the same time their checkbook are full of customer deposit record (All those deposit records are not money, just records. But banks call them M1)

When the central bank directly or indirectly buys debt instruments created by the government, the money comes from its own "checkbook": the only thing "backing" that money are the same debt instruments it buys. Then, this money becomes the "reserves" for commercial banks to make loans from their own "checkbook": both reserves and commercial bank loans are "checkbook money," and both increase the money supply, although the latter kind by a much larger factor.

This is by far the best video about money creation!  

The FRB part could be listed as a separate fraud, because that involves money circulation, most are checkbook number in banks, it does not increase the amount of base money that banks can loan out (a fraud in a fraud  )

Worth watching

The Biggest Scam In The History Of Mankind - Hidden Secrets of Money
https://www.youtube.com/watch?v=iFDe5kUUyT0#t=0