I'd like to discuss M. Maloney's 'Hidden Secrets of Money' series

[mcplums]

Specifically ep 4, which can be seen here https://www.youtube.com/watch?v=iFDe5kUUyT0. If you can get past all the nonsense which makes it sound like the world is run by the Illuminati, it's a really good video.

I am new to all this kind of thing so do not have strong opinions/biases (as far as I know!). I am posting this to increase my understanding, not to lecture anyone.

What I'd like to understand is that the ideas he puts forward make a lot of sense to me- so, why isn't it generally regarded as a big deal? Why isn't this a massive, global, political issue? Whatever the answer to this is, I'm sure its complicated, and can't be reduced to something like 'because people are dumb'.

The main points from the video are that the current central banking system has a finite lifetime, for a number of reasons:

1) There is always more debt than central bank reserves due to fractional reserve lending
2) Therefore, it is impossible to pay back all the debt- if you try, the system will collapse
3) The only solution is to constantly increase the money supply by 'printing' more money, i.e. increasing central bank reserves. This has been happening at a crazy pace- see http://upload.wikimedia.org/wikipedia/commons/e/ef/U.S._Monetary_base.png. US monetary base has increased 3.5 times in the last ten years. In the long run this must lead to inflation.
4) In conclusion, the system lies on a knife edge between collapse due to there not being enough money to pay back debt, and huge inflation. Inevitably, one of the two of these must occur.

Please let me know if I didn't comprehend the video correctly.

So- assuming I did understand it right- is this actually an accurate description of global economics? It sounds sensible to me. But am I missing something!?

So many questions!

[mishax1]

Well, at least something about his videos is truth, don't you think ?

Here are the graphs of the global stocks, where did all that money came from and whats going to happen next ?

And it's not always about the amount of money they printed, but how they manipulate the whole system and the public. - https://www.youtube.com/watch?v=ipe6CMvW0Dg

[NUFCrichard]

If the audit the fed bill is passed, we might find out just how true the statements made in the video are!

It is very difficult to prove what he says is true, except some things are logical, for example: how can every country in the world have debt? That means that there is a negative amount of money in the world, which would imply that the debts can never be paid back, I mean where would the money come from to get back to zero total?

[Erdogan]

The proposition that there is not enough money, because of interest, is flawed.

The system will crash because governments spend more than their income. The music stops when nobody wants to lend more.

[Maegfaer]

The proposition that there is not enough money, because of interest, is flawed.

The author of this very interesting webpage agrees with that: http://www.moneyasdebt.net/

Debt still has to grow forever though, even the rate at which more debt is created cannot slow down, or else the system will collapse.

[mishax1]

The proposition that there is not enough money, because of interest, is flawed.

The author of this very interesting webpage agrees with that: http://www.moneyasdebt.net/

Debt still has to grow forever though, even the rate at which more debt is created cannot slow down, or else the system will collapse.

Hmm this is weird, I can't access moneyasdebt.net unless I'm using "hide my ass"..  Is the site working well for you ?

*managed to access it via TOR     I wonder why..

[bigtimespaghetti]

Mike Maloney, is a starting point. But his oversimplification and outright dogma is actually a very narrow-minded view of the monetary system.

He is also associated with that Kiyosaki character who is equally shady. It is my personal opinion that MM et al are a bunch of dishonest hucksters and charlatans.

Take it from someone who has consumed a lot of their material.

[dinofelis]

The proposition that there is not enough money, because of interest, is flawed.

The system will crash because governments spend more than their income. The music stops when nobody wants to lend more.

Indeed, this has nothing to do with money.  This has to do with the flows of goods and services.  States essentially take goods and services from their citizens.  Part of it, they take directly as taxes, but a part of it, they promise to give back, while they are actually consuming it, and have no way of giving it back, except taking it still elsewhere.

[johnyj]

The proposition that there is not enough money, because of interest, is flawed.

The system will crash because governments spend more than their income. The music stops when nobody wants to lend more.

There is not enough money because of interest, this is a sound theory, since banks will never spend majority of the interest they receive, they just purchase more debt with their interest income, this is the main reason why banks just get larger and larger regardless of economy situation

Government can have positive income if they cut the welfare and raise the tax, but that government will be immediately voted out, so it is people who voted an unprofitable government

[johnyj]

I think this video explains it very well, but if M.M can further simplify on the "FED create money to buy bonds" part, that will explain more clearly why modern money creation is a scam

In fact, all the fiat money creation is a scam, the difference is the degree of severity, and if it is legal in each specific country. As he said, this is unconstitutional, but he should find the corresponding constitution to prove his statements