Money as Debt

[haju]

I am one of the highly educated professionals this video talks about who knew nothing about money.

Everyone should watch this video.

http://www.youtube.com/watch?v=vVkFb26u9g8

I think I agree with the old philosophy - usury *is* immoral.

Comments

[sim_puyo]

Your mum is immoral! Zing!

I watched this video. It's great and that's coming from somebody for whom financial theory is like poison. This video is one sided - it demonizes the fractional reserve banking system - but it's also very educational!

I think that lending more than you have is irresponsible. When it's legal, as it is with fractional reserve banking, spending beyond your means and going into debt is also irresponsible. Its impacts extend well beyond yourself (multiplied by a certain... fraction!). It's like conservation of energy. The treatment of debt as real money becomes absurd as soon as that debt can't be repaid. Suddenly there's less money for everybody. Woomf! Your bankruptcy is a domino falling over in what could end up being a long line of dominos set up by the fractional reserve banking system.

I wonder how Canadian citizens feel about the Bank of Canada. I wonder if it's working out for them. From watching this video and considering the need for loans to lubricate an economy, a nationalised central bank seems like the best compromise to me. I wonder how many Canadians go south of the border for loans. I wonder if the Canadian government has to pay interest to its own bank.