Chapter 8 (The Fed Money Creation): Chapter 7 explained money creation via money loaned into existence by banks, on the local level. Chapter 8 explains money creation by the Federal Reserve, where we learn that it is manufactured out of thin air. Perpetual expansion is a requirement of modern banking. The banking system MUST continually expand, because that is how it was designed. By understanding the requirement for continual expansion we will be in a better position to make informed …
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Tags: Chapter, CHRIS, Course., Crash, Creation, Martenson, Money
im not thrilled at all…
Hello ChrisMartensondotcom
I have to admit I am very impressed with the quality of your videos here on youtube.
They are certainly a pleasure to watch as I do enjoy them.
I am sure there is many others who also feel the same about your videos.
Mark McCulloch
you can like watch Entourage online at entourageepisodes . com
I think the one aspect that is always neglected is if such debt can be incurred then why aren’t we experiencing a huge inflation to match this debt creation.
more debt = more inflation?
Anyone with basic knowledge of the central banking system will realise just how much of a monolithic scam it is.
[...] Crash Course: Chapter 8 – The Fed & Money Creation by Chris … [...]
the peoples assets for pennies on the dollar. Whereas if the values hadn’t dropped, the people may have covered the loan with 1 asset. But as such, it may require 2 or 3 of their assets. Finally, the Money Mongrels cause a robust economy again and the assets which they obtained appreciate back to their normal, higher value. Thus, for every dollar they loaned, they took back multiples of a dollar on top of whatever interest had been payed prior to default. That’s why we pay interest first
Defaulting loans are how the Money Mongrels obtain things of real value. They know that the notes they print are equivalent to Monopoly game board money. First, they create times of plenty, a robust economy. The people obtain loans because they’re earning. They then turn the loans into assets, things of real value. Then the Money Mongrels create times of hardship. The people can’t pay loans so they’re all selling. With nobody buying, the assets’ values drop. Through default, the Mongrels collect
Longer ago yet, in India you had a system in which the country was divided into various principalities and the rulers of each one was a very large, fat man. Something like a Sumo wrestler. Because periodically their subjects had to pay the equivalent of his weight in precious metals and gems. The ruler even sat upon one of the two trays of a large scale while the people placed the treasures upon the other tray until the scale became balanced
Interesting world we live in!
I am on the lower end of society. Well when credit cards were beign issued in india. I got mine 2 years ago. I spent money and I paid 24-30per year. Interest on that amount. that isnt loaning money. Well we had something called zamindari long ago a system that is abolished now. there for 100 Rs loaned out you had to pay 125% in the first year. how is that different from zamindari system. We looked down on the zamindars, as these people robbed the average people. so did the credit cards for me.
I see! Money expands in quantity, and inflation decreases its value. BUT defaulting loans also destroys specific money, and reduces the need for inflation to reduce the value of all money.
It’s called inflation. When the numerical quantity of the money exceeds the material value of society it loses representational value. T
The Big Banks own the Fed and regulate themselfs.
One thing to keep in mind is that if we get rid of the Fed their dollar goes with them.
J.F.K. started to do that. He signed an Executive Order which ordered the Dept. of the Treasury to start printing the bills, at no intrest.
Got him killed. Abe. Linc. did the same thing, he printed money to pay for the Civil War that’s why they killed him. Pres James Garfield was killed because he publicy said what they were doing. Money is power, and they won’t let anybody get in their way. 
Who owns the Fed Reserve? And, who regulates them?
H.R 1207………………….
[...] Crash Course: Chapter 8 – The Fed & Money Creation by Chris … [...]
so who are the owners of the fed reserve?
I think, this is how it works all over the world (not just in US). In every national state that has its own currency.
FED simply printing money but also ECB (Euro), BOJ (Yen), ect… do.
This is banking system in action, without this it would be no banking system at all.
It’s not so thefty as you might think… You can rise your own Bank if you want…
From FED.
FED can buy banks’ bonds (simple by printing money) and government (I think with FED cooperation) determines the interest.
Central Banks simply print money (through buying bonds) with money that DOES NOT EXIST!
Very good loop Program.
Interesting… He said that money creation is simple… I must be stupid, because I got very confused with this.
It’s beyond my understanding why the treasury doesn’t issue the money directly without being forced to pay interest to a cartel of private banks that are being deliberately hidden by the Fed. A group of private people, abhorrent leeches get colossal amounts of money for nothing. Some democracy, freedom, liberty and equality that is. The so called ‘war on terror’ should start with the financial terrorists in US.
1) Money can only be created by loaning it
2) -> All bills are debt for an amount larger than their face value
3) -> To pay back the loans of creating all the money in existence, we need more money than exists
4) -> We need to create new money
5) GOTO 1
Thanks for your comment, manchovie, it made me think more deeply about the issue. I think that you’ve omitted the fact that bank profits are also loaned money (from FED or banks themselves) because the system does not have a source of interest-free money. Thus I believe the video is correct.
2:45 : “Given the fact that[...]”
It makes sense to switch to get the hell out of Dodge and switch to another money, is what makes sense… : P