Summary of The System of Money | Documentary Money Creation | English | Finance System

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00:00:00 - 01:00:00

The documentary explains how money is created by banks when they make loans, and how this system of money creation is profitable for banks. It also discusses the problems with allowing banks to create money, as they have an incentive to do so and have a tendency to create too much.

00:00:00 This documentary explores the mechanics of money creation, and explains that it comes from a variety of different sources (including notes and coins, commercial bank money, and central bank money). The documentary also discusses how money is used to fund government operations and raises money for the government.
00:05:00 In this video, the history of money is discussed, with particular emphasis on the role of banks in the creation and distribution of money. It is noted that since the 1840s, the government has had the power to create money, and since then, most money has become digital. It is also mentioned that, since most money is now held in bank accounts, the legislation governing this process has had to catch up with the changing technology.
00:10:00 The documentary discusses the way banks create money, noting that most of this activity is done through the issuance of loans. When banks make loans, they create new deposits in their customers' accounts at the Federal Reserve. This process of money creation is profitable for banks, as the interest on these loans is greater than the costs of making the loans. In 2009, the Federal Reserve lent $160 billion to troubled insurer AIG, much of which was created as electronic funds generated by the lending activity of banks. This demonstrates the central role that banks play in the creation of money in the economy.
00:15:00 The documentary discusses the system of money, which is created by banks when they make loans. The documentary also discusses the problems with allowing banks to create money, as they have an incentive to do so and have a tendency to create too much.
00:20:00 The documentary Money creation argues that the current monetary system is based on debt, and that it is impossible to have an economy without debt. In order to understand this system, it is important to understand how money is created. Under the current system, businesses must borrow money in order to trade, and when people take on too much debt, it becomes difficult to repay that debt. This cycle of debt and recession can continue indefinitely, unless people change the way they think about money.
00:25:00 The documentary Money Creation discusses the role of the banking system in the economy and the impact of bank collapse. It also discusses the role of Central Bank Reserves and how they are created.
00:30:00 The video discusses the importance of central bank reserves and how they are used to make payments in the economy. Prior to the credit crisis, banks relied on central bank reserves to make payments. Banks can now have as much of this currency as they want, which has no backing in reality. As a consequence, the reserve ratio has changed many times over the years, and there is no longer a fractional reserve system in place.
00:35:00 The system of money, which includes currencies and financial systems, is based on a fixed value of gold. After World War I, this system broke down and was replaced by fiat money, which is based on confidence. Today, money creation is out of control, and there is no backing for the paper money we use. The Davos conference has called for an expansion of credit in order to create a boom.
00:40:00 The video presents information on the role of money in the economy, discussing the ways in which rapid credit expansion can lead to inflation. It also covers the effects of increasing house prices, pointing out that there is no net gain in wealth when wealth is re-distributed to those already wealthy.
00:45:00 The documentary explores the cause of the housing bubble and crash as well as the role of money in creating bubbles. It explains that bubbles occur when there is inflation in the price of a specific good or service, and that this can be caused by banks creating too much credit in relation to other investments. The documentary also explores the history of bubbles, and how this has contributed to the rise of powerful nations.
00:50:00 The documentary discusses the history of money and how various methods have been used to create it. It highlights the importance of ensuring that money is used for productive purposes, and explains how decreased income and inflation are caused by private banks creating money for non-productive purposes.
00:55:00 The video discusses the system of money and how it works. It explains that banks create fiat currency, which allows the private banks to suck wealth from the economy. This over time results in a gradual decrease in the standard of living. As people become poorer, they become even more dependent on debt, which at a time when efficiency and mechanization have improved dramatically, is not beneficial to them. The video also discusses how inequality is increased by the distribution of money from the poor to the very rich, and how the government can provide a safety net for banks in case of a crisis.

01:00:00 - 01:40:00

The documentary "The System of Money" discusses the role of banks in the economy and the consequences of government debt-based monetary systems. It argues that, as the country's resources and industries are privatized and debt is transferred from the public to the private sector, the debt burden becomes increasingly burdensome, and a recession is likely in the future. The only way out is to reform the system so that banks cannot create money as debt.

01:00:00 The documentary "The System of Money" discusses the role of banks in the economy and the consequences of government debt-based monetary systems. It argues that, as the country's resources and industries are privatized and debt is transferred from the public to the private sector, the debt burden becomes increasingly burdensome, and a recession is likely in the future. The only way out is to reform the system so that banks cannot create money as debt.
01:05:00 In this documentary, which is based on a talk by economist Paul Mason, we learn about the current monetary system, how it allows the banking sector to extract wealth from the economy, and the consequences of this system, including the increased poverty rates caused by the banking crisis. We see examples of how bankers have been appointed to positions of power throughout Europe, and the consequences of this trend, such as the increased erosion of democracy. In conclusion, Mason encourages the audience to become more aware of the issues at hand and to demand change from their government, in order to restore democracy and prevent future financial crises.
01:10:00 The documentary examines the history of money and the banking system, highlighting how the 2008 financial crisis was caused by a run on the banks caused by people withdrawing their money to buy assets like houses. The documentary also discusses the effects of a devalued currency and how it can lead to economic instability.
01:15:00 The modern financial system is based on currency-based debt and relies on a system of international clearing unions to try and reconcile trade imbalances. However, this mechanism has not yet been successful in preventing currency wars. These wars occur when countries attempt to depreciate their currencies in order to make their exports more competitive, which can lead to a decline in the value of other currencies. In addition, this chaotic system has caused the Brexit vote and the current global recession.
01:20:00 The documentary discusses the system of money, which is based on the idea that currencies are worth more than others because of their respective economies. Markets determine the value of currencies, and if more people want to buy a currency than sell it, its value increases. Large corporations have to do this on a regular basis, and when it becomes something that people question, speculation becomes involved. If a country's economy is weak, financial contagion can quickly take place, leading to economic instability. The documentary argues that regulation of the financial markets would be better for the economy as a whole.
01:25:00 This documentary explores how the global economy operates, focusing on how debt, currency, and financial systems are used to manipulate and control countries. It explains how developing countries often end up indebted and in debt slavery to large corporations, and how the IMF is often used to force these countries to make unpopular economic changes.
01:30:00 The video discusses the history of financial instruments, including derivatives and credit default swaps, and their role in the 2008 financial crisis.
01:35:00 The documentary "The System of Money" discusses the mathematics behind money creation and how it has been flawed in the past. The system is designed to make certain people very rich at the expense of a nation's citizens and tax payers, and it has led to a spectacular crash. A new kind of currency backed by something that is scarce and valuable would be very beneficial, and it will be difficult to achieve. International organizations are created for the purpose of creating a fair and stable monetary system, but it will require the will of a powerful force to make it happen.
01:40:00 This video documents the experiences of George, a banker who was suddenly forced to reduce his lifestyle when his bank went bankrupt. George's situation has improved somewhat since then, but he still faces difficulty in affording basic needs. Even small donations can make a big difference in his life.