The Central Banks, how money is created

Here's another must see, a 5 part animation and narration about the history of money, how money is really created and what the dangers are of our current money system.

Suitable for all audiences. If your a free-market-at-any-cost freak, then this will annoy you. Watch it anyway.



The odd thing is that money is created from debt. If you get a mortgage, that money is created by your obligation. The gov't only creates coinage, the banks create the money. Without all this debt, the world would have less money in circulation. So Bush is thinking, "OK, let's make money ..." and gets out Uncle Sam's credit card again.

(Sidenote: serval hundred billion physical US dollars are outside of the US. most virtual US dollars are definitely outside of the US, right ?)

The clincher is when it is explained that this debt only creates the money in the world to pay the principal, and then we all have to squabble to find the money to pay the interest.

So the existence of interest demands the economy grow (or inflate) to meet that. Which means the world has to continually grow its economy. Oh wait, then there's all the fucking, and that 's what creates all these people and really creates the need for growth. Hmm. OK, we have to find new worlds to inhabit.

2, then 3,4,5 :
http://www.youtube.com/watch?v=hfXavRTM4Fg