Thursday, December 04, 2008

Thought-provoking video on the banking system

Sometime last year I came across this series of videos on YouTube about how banks making loans, not government-printed currency, creates most of the money in the United States economy. At the time, I thought, "This is hard to believe, but it makes sense. This is just some communist outfit propaganda, though, right? How can it be that the government is seemingly so far removed from actual control of the money supply?" The YouTube version was bookmarked and forgotten in my Firefox browser. (My delicious account is desperately long overdue for syncing.)

These past few months though, when US banks started begging "us tax-payers" for bailout money, reminded me of the ideas in the video. Thanks to Cory Doctorow at Boing Boing and someone named Chris (?) for the link.

Stuff in this video gets a bit complicated but it is well-worth the effort to endure all 47 minutes.

[ Link ]

Update! Here is a web page that lists the references for the quotes that Paul Grignon has used in his Money as Debt video.

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