Quote from: Findeton on June 03, 2011, 11:21:22 PM

Quote from: icecoins on June 03, 2011, 10:28:05 PM

Quote from: Findeton on June 03, 2011, 09:25:04 PM

MONEY AS DEBT is a misleading movie that contains mayor errors while speaking the monetary system. Money is not debt, and money is never created only out of debt.

Hmmm.. could you elaborate? Maybe explain to us how currencies are created instead?

Imagine a bank lends you some X money to buy your house/car whatever. Before that, the bank had $X in their account, and you had $0 in yours. When they lend you the money, they still have that money, so they are creating that same money that they are lending you. Now they have $X in their account and you have $X in yours.

¿How is that possible? It's simple, when they lend you $X you sign a document saying that you will return that money (with interest, but that's not important right now) and you support that claim with facts, that document becomes a bank guarantee and its tantamount to those $X, and that's why they still have $X in their account. For example, you could support the claim that you will return that money because otherwise they will sell your mothers house/car. In that case (which is very common in Spain btw), they still have those $X in their account because with that they just introduced your mother's house into economy.

I could go into more detail, but, for now, it's enough to demonstrate the kind of false statements you can find in some of those movies.

Of course this system is all but perfect, but don't try to crictizise a system without know how actually works. For example, what happened with the housing bubble was that those bank guarantees were not so sound (you mother's house was worth less than what the bank estimated -and they knew it-).

It seems to me that you are talking without even having seen the movies! Because of the fractional reserve system, as I understand, if the bank lends me 10 for my house the banking system as a whole can invent 100 or 500 or whathever amount depending the country you live in from that sole lending. So if banks charge 5% for a credit card debth, in reality they are making 50% or more a month. Luckily you get 3% A YEAR if you deposit your money in thouse same banks. If that is not usury then what is. This system is a constant wealth transfer from the common man to the financial sector. If many people pay their debt the whole money supply contracts, until there would be no money left. The system depends on debth, and it will be never stable. It makes the economy dependant on debth so banks can steal. If we owe more, there is more currency available, if we pay debth our economy crashes. There is no way out of slavery. This is ridiculous! I guess you are brainwashed by the mainstream economics lies, as so many people are. I also gues you will be paying your house mortgage for 30 years and think you did a good business. It seems you live in Spain, so you should learn a bit from the financial problems your country is having right now. You could also see the movies before comenting on them. Also you could learn a bit from Jesus Huerta de Soto, a spaniard too.

Here http://www.youtube.com/watch?v=nXphcuCfzxw&feature=channel_video_title
http://www.youtube.com/watch?v=xVrTCLoRrVw&feature=relmfu