Money is Debt

No, the only way to "win" is to exploit the availability of other people's money.

Remember, the banker makes money by lending what he does not have. It is exactly the same as me buying a home with money I do not have and renting it out, or living in it, saving money that would otherwise be spent on rent, and enjoying the growth in equity that naturally occurs in cycles.

The video, like all messages of this type, pre-supposes circumstances that do not exist; Economic theory is taught in schools, and very few people operate under the assumption that the Bank has vaults full of money that it lends out. Anyone who has seen "It's a Wonderful Life" knows where the depositors money is.

Additionally, the video first explains that anything that can be considered relatively stable in value can be used as "Money". This of course includes the homes, businesses, cars, whatever... that banks make loans for.

That the bank's loans are secured by mortgage notes rather than actual paper dollar bills is irrelevant.
 
As an economics major in college.. I'm going to have to disagree with his premise 'we' don't study it. I certainly did!

It's required in high school as well.

Debt money, otherwise known as cash, can be, inflation aside, associated with a specific value over time. Not coincidently, the price/value of gold, silver etc., often fluctuates more than 'debt money' legal tender does. Our $ system is very complex and on many points I agree with the 'author' of the film, it is in many circumstances getting out of control and there is a real nervousness among many I know and respect to what extent this sort of system/cycle can sustain itself. But overall, diversify and don't overly worry about it. The majority of his 'points' can easily be refuted with a basic understanding of the concepts at hand.
 
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Sigh... so I guess the only way to win is to become a banker.
... or you can just put your money to work for you instead of letting it rot in your banker's liability column.


Cash is debt or cash is king. The former supposes that you horde cash; the latter assumes that you have cash on hand only for the purpose of generating greater value (i.e. investing). Be that latter. :wink: :biggrin:
 
... or you can just put your money to work for you instead of letting it rot in your banker's liability column.


Cash is debt or cash is king. The former supposes that you horde cash; the latter assumes that you have cash on hand only for the purpose of generating greater value (i.e. investing). Be that latter. :wink: :biggrin:
Ditto - work for your money, or make your money work for you. :tongue:
 
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