Here are some questions that I have about this video:
- Does it really work as the video claims it to be? -- Fundamentally yes, but the debt paradox is not true, so many of the conclusions are wrong.
- Does the same yield for the Euro or Yen for example? -- Yes
- Would a gold standard really solve all our problems, or would it create others? -- A gold standard does not prevent fractional reserve banking, but it does prevent governments from using inflation to postpone default.
- Why would a sovereign country give the right to make money to a private corporation with stockholders, so that they can collect interest? They could just do it themselves without having to pay interest. -- The Federal Reserve was originally created under a gold standard, but it changed as a result of leaving the gold standard. The original idea was that an independent agency would manage the money supply without being controlled by politicians. This has had only limited success. Of course, because now it's the other way around, the politicians are now controlled by the independent agency which controls the money supply. Capitalism basically means whoever controls the money supply, controls the country
- Does it really only work if the system collapses every 150 years or so, which would be the logical future as pictured by the video? -- A collapse is the result of excessive deficit spending by the government, and not some flaw in the system.Also the fact that they lend money that doesn't exist, and expect the borrower to pay it back, with interest.
- If the current system only works if new debt is created to pay the interest on the principle, why aren't a lot of economists rebelling against it? -- Interest can be paid without creating new debt.
An example of how the debt paradox is wrong: Suppose I am a fisherman and I create IOUs to buy a boat and those IOUs are used as currency. The IOUs are debt, just like the dollar, and they have interest payments. I don't have to create more debt to pay the interest because I can pay the interest with fish (or IOUs gained by selling the fish). Everything is ok as long as I don't go so far into debt that I can't pay the interest with fish. If I have to continually create more debt to pay the interest (as the U.S. is currently doing) then eventually the system will collapse.
Likewise, the dollar will eventually collapse if the U.S. government continues to create money to pay the interest on the debt. The problem is not using debt as currency. The problem is going deeper into debt.
Maybe so, but it's still a scam because the richest persons in the world are mostly rich just because they gain huge sums of interest on money they themselves printed. That's the whole reason i use bitcoin, I don't want to depend on monopoly money.