Most of the video (except the FRB part) is correct
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What is wrong about the FRB part?
From what I'm reading, bank lending creates deposits, and the limit on amount of new money is the willingness from others to borrow it.
The problem of this system is that in case of the federal reserve, privately owned banks earn money on creating money out of nothing.
Other countries often own their central banks, and get dividend. These countries earn money by making new money, getting hidden tax by creating inflation,
and getting normal taxes.
I'm going to throw some new thoughts about this here.
- To run a wealthy country, a lot of money is needed (national debt is a result of that). People are willing to pay only so much taxes.
Without inflation (hidden taxes) it wouldn't be possible without turmoil. - Inflation is good for the economy, because it promotes spending.
- Policy to keep the prices stable is needed because that's a good characteristic of money. A gold standard couldn't do this, because of the fixed supply.
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In my example, I am the issuer of the currency. Perhaps the example was not clear. The point is that debt-based currency does not have to be created to pay interest. Interest can be paid with production. The paradox becomes real when the interest exceeds production because then the excess interest can only be paid by new debt, and a collapse is inevitable.
Can you explain what you mean with interest can be paid with production. Don't use the fish example, because I can't use fish to pay loans at my bank, nor can a government.
The dept can only be paid with dollars. And dollars bear interest. When all dollars are used to extinguish dept, still dept exists.
The system will be doomed because production or real economy can never keep up with creating new dept.