"Money is debt" expired announced over 2 years ago

OBJECTIVE
Understand how money is created out of thin air in the current fractional reserve banking system
TERMS

If we reach at least 100 people by December 12, 2009, then We pledge that at least 10 of those people will become change agents in the society.

THE PITCH

Spend ten minutes to watch this video: http://www.youtube.com/watch?v=vm3DixfL9o0

If you like what you see, join the 360,000 people in thezeitgeistmovement.com and become part of creating tomorrow’s society today.

If you wish you can see other videos such as “Money as Debt” or just simply google “fractional reserve banking system” to increase your understanding.

Feel free to discuss this topic in the community.

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Recent Discussion

Tomi Astikainen started this discussion on Nov 12, 2009

Fractional-reserve banking is the banking practice in which banks keep only a fraction of their deposits in reserve (as cash and other highly liquid assets) and lend out the remainder, while maintaining the simultaneous obligation to redeem all these deposits upon demand.

Fractional reserve banking necessarily occurs when banks lend out any fraction of the funds received from deposit accounts. This practice is universal in modern banking.

In essence, when granting loans, banks create money out of thin air. This is all legal.

The downside is, of course, that more and more money is needed to cover the amount of debt that is always larger than the money supply because of interest. This leads to foreclosures and bankruptcies, i.e. some people have to fail.

Other downside is inflation, i.e. you get less for your money.

Third, the system calls for continuous growth, i.e. turning natural resources into products that go obsolete soon enough so you can buy more.

Money as we know it is an obsolete man-made idea. There is an alternative.

www.thezeitgeistmovement.com

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Thepoint_square
The Point started this discussion on Dec 13, 2009

“Money is debt” failed to tip before the deadline, December 13, 2009

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