What Is Money ?
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- Опубліковано 1 жов 2024
- www.positivemon...
We all use money, we all rely on money. But do we know how money works? Where does money come from? How is money created?
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Positive Money is a not-for-profit research and campaign group. They work to raise awareness of the connections between our current monetary and banking system and the serious social, economic and ecological problems that face the UK and the world today. In particular they focus on the role of banks in creating the nation's money supply through the accounting process they use when they make loans - an aspect of banking which is poorly understood. Positive Money believe these fundamental flaws are at the root of - or a major contributor to - problems of poverty, excessive debt, growing inequality and environmental degradation. For more information, please visit: www.positivemon...
Narration: www.andrew-pipe...
Animation: www.heanimation...
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To all you who discard this video's message at first glance should remember this quote:
Condemnation without investigation is the height of ignorance. -Albert Einstein
Money is numbers. Look at your paycheck and bank account. Banks are the originators of the quantity and allocation of the numbers that make up our money supply. The numbers that float about in the form of tokens (coins and cash) and digital blips (electronic money) have there source or beginning in Banks. Banks control the Originating Tap of Numbers which flow through the Economy. By Capturing this particular Function of the Economy~ the Money Issuance Power or Credit Creation Power through this Banks can direct the whole economy. Allocating where the money shall go is similar to steering the economic ships course. Watch talks by Richard Werner.
Usury is the issue.. Try not to borrow money if you can and if anyone asks you for money to help you, then beware. Give to people who need money and don't ask you
Great logo and excellent graphic design concepts. I feel the content is perhaps too simplistic though.
This short movie mentions the interests that the banks receive for themselves, but it should be mentionned that , if money is destroyed when the debt is off, the interest still exists and stays in the hands of the banks owners, who inject them in the financial circles, for creating new loans with high interests, instead of than investing it in real economy with risks and low interest.
It results inflation in stock exchange, and housing market, and this minority of persons becomes more and more rich, whereas other people become poorer. This is scandalous, because creating money ex nihilo is very easy, and doesn't cost anything. The interest should go to the citizens, who would invest it in real economy.
Clau P Excellently put. We need a system dominated by smaller, co-operatively run banks as opposed to putting all our eggs in the City of London.
Actually the Interest 'payment' still exists but the Interest itself was never created so the only way to pay the Made-Up Debt and the Made-Up Interest that was never created is people must lose their real assets. It is like this when we get a loan and pay it back plus the Interest someone some where must lose their Home, Car, Business, some kid in Africa must starve, and or one Country must go bomb another country and take that country's real assets.
The People ie The Government can create all the Money the economy needs Debt-Free and Interest-Free and "Spend" it into circulation on things of value like The Roads. No Debt, No Interst, No Taxes.
easier to just ban interest and move to a profit loss investment lending model
Question - the debt can only be paid off by the following generations. The debt is owed to the banking system. So, why would the next generations tolerate giving their money to a system that counter-fitted 'money' and has nothing much to show for it?
Banks create money out of thin air. Money is created through credit. Therefore, money = debt. That's why they fear deflation above all else, because deflation kills debt, while inflation creates debt.
I started thinking smart. instead of living. Paycheck to paycheck. And thinking how I can have more currency that I can do the things that I need to do. And I want to do aswell. I started buying currency. All kinds of from magic money. To money orders that look like money. And even debit bills. That also looks like money. I even bought the currency that is listed as A toy. Because that is what it is. No matter how old or young you are. That is one thing that you can not have enough of is money. Currency , cash. Be it in the form of learning money. That can be used as IRA. That when you decide what you want to use it for. Like cash,credit or debit. Or even gold. Be it gold leaf currency. Or gold. Silver or platinum. Or like my first trillion dollars. That is made of nickel. That I did not have to work hard for it. I bought it from A catalogue. From things that you never knew extisted. So the saying is true. You do not have to work hard. Or hardly work. To have what you want and need. That way. When the sun is shining. It can also be A rainy day.
let me explain it waaaay faster
MONEY IS A PROMISE representing labour and production
NO! NO promise! DEBT only! OK! DEBT, one of the greatest invention on human kind. DOne. Promissory notes were a backed by something more than labour and production, today it is just what? Do You know? NOT PROMISE! just theory that nobody understand, no single man. OK? Look my Vault of Gold. NOt mine, but I have left a message there. Gold Vault At Bank Of England (1968) ua-cam.com/video/c58d9J553Nk/v-deo.html
Sylwester Bogusiak debt is just debt and money is the opposite part of a specific debt that comes from creating money
@@martebest *The promise by government to accept that currency to satisfy your tax obligation.*
@@MrTrollBeast Money is debt because is created as credit. Hence its promise to repay the debt. When you repay debt, debt is canceled and money disappear. Promise to repay debt is adequate to GDP.
@@Jesus-kt5dc Yes. Currency vary from money. But you right and this obligation is called just debt.
Bitcoin! Bitcoin! Bitcoin!
Can someone please help me understand something. So the banks create money from nothing in the form of a loan, I get that. If I decide not to repay my loan to the bank, then what do they lose...? Since they created the money from nothing, surely they have lost nothing, or am I being dumb 😂
Loan installments are divided into principal installment and interest installment. When the interest installment does not reach the bank, the bank does not earn anything from its activities, even though it creates money out of nothing for the borrower. But still bank need to pay salary to his workers.
You missed out the important part. Fractional reserves and money deposits placed in banks enables the creation of more debt money
#DigiByte
You can thank me later ;)
Okay +++++
Communism + steady state economy + slow phasing out of money in favour for something else + maximum wage + 4 hour work day + 4 day work week + everyone works for less than they receive with the surpluss going to the state for redistribution = step in right direction.
Please, please, please get the PHSE lessons in schools to be replaced by something like this. Those that care about their education will enlightened. Though the majority won't care, at least the more able people in society have the basics of the most important subject in their lives.
Nope.
The housing crisis was not "caused" by the banks. The banks were complicit in the act, but the crisis was caused by government.
Back in the 1960's, our American president Lyndon Johnson spearheaded a campaign to force banks to make loans to minorities. Not only were they not allowed to reject qualified minorities, they had to show that they had, on the books, a certain percentage of minority loans. Even if these minorities weren't as qualified.
Feel good idea, but a first step on the wrong foot.
Fast forward to the 1990's, and the same liberal idealists got an even BETTER idea. What if we changed the law to benefit not just minorities loan seekers, but "under-represented" loan seekers.
The problem was, however, was convincing banks and conservative politicians to go along with risky loans to a much wider field. So, our government, who thinks it's good for the economy for EVERYONE to own a home, made a deal with the banks. They removed the regulation that separated lending bank and savings bank divisions, allowing them to be under the same umbrella. Which would make it legal for banks to claim loans as profit. Giving their seat on the stock market more value. As an extra-extra incentive, our government would guarantee these loans so that if the borrowers couldn't pay the loan, the bank would still get its money from the taxpayer.
A recipe for disaster.
So the unfettered lending began, and the plot worked like a charm for a while. Until it didn't.
As soon as people started to default on their loans, the whole thing began to unravel and suddenly, we were in a "financial crisis", and banks that were "too big to fail" were used as a punchline to trot out and blame for the whole mess. In the meantime, President Bush and President Obama both made good on government's promise and gave TRILLIONS of taxpayer dollars back to the banks to recover the lost money. President Obama went even further with HARP to trickle more taxpayer money into the banks.
In the end, the idea that "everyone deserves a house" might be noble and heartfelt, but not in the real world. Trying to legislate morality didn't work. The funny thing is, that if the system were left alone, racist morés would have shifted all on their own and minorities who qualified would have been given loans anyway. Bank don't love white people. The love people with green.
Yeah except it's clearly wrong. Especially as it only deals with one person's finances and not the economy as a whole. On balance, Robert was only ever £9000 in net debt. And that was his net effect on the bank's balance sheet. After he has paid off £1000 of his loan, nothing meaningful changes from either Robert's perspective, nor the banks. Nothing has been destroyed. £1000 in his current account was not "in the economy" it was his current account balance. The world carries on turning.
That's just confusing and alarmist terminology. No actual money is "destroyed". No one gets poorer when a loan is repaid. What I'm really at a loss to understand is what PostitveMoney is for? Apart from getting a lot of people worked up I mean. What exactly is the problem that you think needs to be solved? It seems like an awful lot of baffling hot air to me.
Banks Are Just Middleman for Newly Issued Loans and When Loans Are Created Cash is Delivered Because Cash Itself is a Loan that Comes from Business Suppliers Funding Each Other, However Because of the Nature of Cash Business Have to Borrow Cash from the Manufactoring Business & the IP trust owners
If we did that 9/10ths of the worlds population would die of starvation. We just need to take the privilege of creating money away from banks.
Thank you very much for this enlightenment. Good content.
It never really answered the question of what money is other than saying it is credit. In fact, it is a MEASURE of the credit made available by banks and central banks. If that is the case then many of the ideas of positive money may lead us in the wrong direction. It is also a MEASURE of the value of transactions, goods and services. It makes no sense to think of it as a store of value as many definitions include since it is so readily created and destroyed.
What is money????
My ans :-Money is the thing that if you have more than it, then it is far from your own even if you are near it, and the person who is not near, or even if he is near, is away
What is money?
Baby don't hurt me
Don't hurt me
No more
Is it 90th song
This movie is complety non sense. This make some one, who don't know how economy work, what is "money" and how work. Unlike.
You know, these videos are nice, except that they present a very specific agenda in such a way that the content appears simply educational. Yeah, education tends to incorporate certain ideologies, but this video incorporates such ideologies in a way that what could be considered "merely" educational content like that of, say, KhanAcademy avoids altogether. That is, where some educational content might be biased by an ideology of some sort, these videos explicitly sponsor ideologies (i.e., that of your Positive Money organisation). I'm not saying that's inherently bad. Most environmentally-oriented organisations produce educational content that is steeped in their ideological views. For example, take _The Nature of Things with David Suzuki_. That show's all about promoting his values through education. It's a fantastic way to both inform and invigorate people. It works because the creator's passion is evident, and it's contagious. But people need to be able to choose what to believe. And coercing people by pretending to be merely educational where the content is really more along the lines of a David Suzuki show is simply misleading. It gives the impression that you're trying to trick us into not thinking, and that's the opposite of education (well, kinda). And for those who notice this trick, they're much less likely to buy into what you're selling.
So, why not be transparent about what you're promoting, eh?
+DonutUnderpants I get your point. But they are transparent, if you watch until the end.
would you like to state, where you do not agree? or consider the following:
1. private banks are not intermediaries, clearly stated by the bank of england itself: bilbo.economicoutlook.net/blog/?p=31063 the private banks create the money, central banks only create M1, and since the money supply in total has expanded
Composition of U.S. Total Money Supply
the significant part of this expansion can simply not heve been intermediated - but created by the private banks giving out loans.
2. consuming beyond affordability is in the interest of private banks: interest payments come in and/or real assets are gathered when a deptor fails - a double win, when the economy is booming and again in a downturn, when assets become property of the banks, that is why private banks creating money by loans are enhancing economic cycles, it is in their interest.
3. mortgages are loans - and the sub prime phenomena occurred exactly because of the dynamics mentioned above - if you want to keep the economy booming and the banks grow (which all politicians, CEO's and shareholders want), then you are tempted to hand out loans beyond affordability. They even gave out mortgages (e.g. Netherlands) up to 130% of the market value of the property - that means everybody - including the banks - were speculating on ever growing property prices. Not considering, that this is equal to endepting future generations by rising property prices without rising incomes for the same section of society
any questions?
But do you agree or disagree with the statement that our current money creation system is very flawed and should change? That is really all that matters tbh.
The video seems to suggest bank lending is a good thing and when it stops there's trouble. So as long as they keep lending there's no problem? Also it's rather confusing to say money disappears. The loan is what disappears. The money always existed and still does when the loan is repaid. It gets added back onto the bank's balance sheet. Either it can be loaned out again, or the original depositor can withdraw it.
Please watch the video Banking 101 part 6 - How money gets destroyed here on youtube - it explains how exactly money gets destroyed when the loans are repaid.
Check out: 'Steve Keen on Debunking Economics' video on youtube.
He's an economics professor who discusses how economics is misleadingly taught in most universities. Also the failings of economics to explain our current crisis. He says the problem is most economists don't understand economics.
In “Occupying Chairlifts” a simple rule tweak on inheritance ends up changing the direction and purpose of modern human life! Here’s a fair way to transition forward to where we’re rewarded for cooperating and creating instead of competing and conquering.
It's something specific we can demand. If this isnt the best answer, at least we’re thinking about what might be. Are we really just this close to having it work right?
Oh yeah, it's a Ski movie! “Occupying Chairlifts” on UA-cam!
money is nothing, nothing at all. humanity will need to wake to this fact one day
Money is not your money you earn it but someone gave you money there money for your work
i visited your site but have not understood what solutions do you propose
0:40 auctually this report is not accurate
CGP Grey on 'Humans Need not Apply' & other.sources about Internationalist 'job-makers' off-shoring labor.
Could These 3 Simple Changes to Banking Fix the Economy?
There is no fixing of the banking system as long as the State controls it.
Timothy Havel If you watch the video, you'd understand that the State absolutely controls it.
Who issues banking licenses?
Who issues decrees upon banks (regulation)?
Who created the Central banks?
Did these things rise from the free market, or are they created by the State?
they were created by bankers! not by the State ! that's the problem ! you don't get it obviously
Kiril Mihaylov Explain how men (bankers), with no legal force, can create the legislation.
Jordan Cartmell No, you are merely misdirecting your argument.
You pretend that politicians are forced to accept bribes, thus blaming the bankers for being evil, and forgiving the politicians.
No, it is politicians, regardless of motivation, who are exercising force, not the lobbyists. If a politician does not act, then there is no force, whether or not the lobbyists do anyting.
Wow money should repersent the amount of value from all products and services, but sence the money in England(？) is created when debt is created, money won't have a clear future...
See how CHF works, and you find that singal bank note from Switzerland must have a GOLD reserve which rate is 40%.
Similar thing in China(Mainland), which RMB mostly represent the total amount of economy but no created by debt (but it's still a kind of fiat money, after all)
In HKSAR and MCSAR, the reserve rate is 100% (required to reserve USD in HKSAR as every HK$7.8=USD$1, before printing every HK$78,000 you must hand USD$10,000 to Monetary Authority then gat an I.O.U.; but in Macau, before printing every MOP$10,300, you must hand HKD$10,000 to AMCM, Autoridade Monetária e Cambial de Macau.).
Just personal saying and research.
Hey........i am always positive on america on the long run................................
Heres my reiteration~Money is numbers. Look at your paycheck and bank account. Banks are the originators of the quantity and allocation of the numbers that make up our money supply. The numbers that float about in the form of tokens (coins and cash) and digital blips (electronic money) have there source or beginning in Banks. Banks control the Originating Tap of Numbers which flow through the Economy. By Capturing this particular Function of the Economy~ the Money Issuance Power or Credit Creation Power through this Banks can direct the whole economy. Allocating where the money shall go is similar to steering the economic ships course. Until people wise up and unmask this rigged numbers game at the base of what 'appears' the rational operation of economy, until that point were captives of a game which allocates wealth/power in crazy ways hence the mad men ruling the planet. Wake up folks. Money is a useful tool and a terrible master. Thanks Positive Money!
The money doesn't disappear. If anything meaningful disappears it's the depositor's money that disappears when it is first lent out by the bank, replaced with a promise of availability. Counting it as money is done simply as a theoretical measure of what the total funds available to society as a whole are at any one time, but clearly it's not real actual spendable money, or a run on the bank would not be a problem. Unfunded bank balances are a really a liability held by the bank.
This is such a helpful video!
They may be problems. I don't think they're problems that can be solved by monetary reform. Positive Money haven't shown me anything so far that makes me think that they are.
The question is still "why is affordable debt a problem?". Especially as the economy seems to falter when supply fails to meet demand. And why does it matter that a lot of money doesn't exist as notes? Surely that's actually more practical. Plus other "problems" that spread confusion and don't seem to be real problems...
Seems more likely to me that you are working for a PR firm. Clearly Positive Money is the organisation with an agenda here. I just can't fathom what it might be. Mainly because I can't see that they have a meaningful message. I want answers to questions such as "Why is any of this a problem?" which they don't provide other than just stating that there is a problem. And only by following them can you fix the ineffable problem.
All a bit weird I think.
It doesn't even have to be televised. There are enough Daily Mail esc economists out there to discuss why reform would or wouldn't work... ~ And I mean a series of debates, not a one off exercise. Every week, post a new topic for debate. eg,, 1) Do. we need reform? 2) What could reform look like. 3) What are the obstacles? 4) When and where...? We know what you think, but we know nothing of what the status quo thinks... Please please consider this.
The answer to all this is educating ourselves about the Constitution (USA) or Common Law (UK). There we will learn that money (promissory note / Legal tender) can only be created by man (slave). The PM can only be made by man under his terms and not in conjunction with another contract in order to be considered valid. This promise is money. There is no loan as you have created it in the first place, with your promissory note (magic wand).
Please, positive money, can you set up a series of debates with "normal" current economists, so we can see how these ideas are tackled by the status quo in real time.
Until this happens I fear you may fall into the trap of arguing in a vacuum of yes men.
Please, a real devil's advocate, posted for all the world to see and consider.
Nicely explained.
a) Technically banks don't need deposits to lend. (but if a 3rd actor demands more money than the bank has then the bank goes bust).
b) The money does disappear when repaid.
c) Google M3 money supply, you will be "mindblown".
Maybe it's not my place to vouch but...
When they said "to learn more, visit the website," I assume you didn't... Because at the top of the website is a large title saying "The Issues", followed by four large images heading a problem that can be fixed. They are:
1) House Prices
2) Debt
3) Inequality
4) Recessions and crisis
So, if you don't think they're problems, then fine, say it loud and proud.
Or maybe you just have better solutions? Maybe it's all those immigrants and scroungers, eh?
I can't stress this enough, you have to been seen discussing this with people who actively disagree with you, else you cannot break out of the far left radicalism in which so many benevolent groups decay. Take the discussion to them.
for turkish people UwU
Are you a troll mechness?
They said clear and simple... If you want answers, view the website.
Or are you working for a PR firm to discredit them before they get off the ground....?
Okay...
This leads me to my original point on this page... Can the guys from Positive Money please find any economist from the right-side and put him up for a recorded debate on these issues... Else it ends up with people like me debating with people like Mechness over issues that you should be guiding us through.
From what I've seen, I'm in, but I simply don't know enough about complex market structures to talk about this stuff (I'm a psychology major).
Good luck getting you answers Mechness
Very insightful. However, I believe this video covers only 'fiat' money issues, not money in general.
Yep good points, but this video does not explain the whole thing, why it's becoming a problem: But for sure I understand that you can't put a huge load of information in a marketing video of course! So good work, keep on
No one worries about the origin of money and we all think how to get those money without getting deep into the origin of money. We have to take care about our money without bothering about anything else.
@rageagainstmyhatchet - all in good time!
This explanation is made by bankers and it's talking about exchanging like by like!! that is not an exchange or trade this is called extortion or I'm stronger I do what I want
Hey......positive money for how long?.......2 years tops.....keep up the good work.......................
The reason it's 'confusing' to hear 'money disappears' is because it goes against what we have always been told. But banks don't loan money they have, they create it.
Thanks for showing us the problem. If you're interested in a potential solution, UA-cam "The Essence of Money" and "Digitial Coin"
Yes only news alone as well and also can help Ghana help African not be money alone as you all have to think as one love thanks thanks Africans is a best and the right world know about as now and its the morning as well West African Ghana as well
Stack satoshis
The question was, "What is money", the video answers "How money works"! CRAP !!
The video is just introduction. Answer is here in 40 s.: ua-cam.com/video/01IusDeSPE4/v-deo.html Money is magic. Right?
Cardano.
Wtf
Is that Varoufakis?
Have a question: the central idea of the video is that most money by created by loans by fractional reserve banking. To pay the debt (plus interest rate), the payment has to be larger than the loan. So eventually the the market will run out of extra money to pay interest, resulting in crisis. Is this idea wrong, incomplete or misleading?
That is called the missing interest paradox.
Some people say that the missing money already exists say that debt is monetised or repaid interest is spent back into the economy.
The economy of a given territory is not a closed system though and some money "leaks" out.
this video is a nice demonstration of what happens when someone (the writer) is functionally innumerate but doesn't seem to know it. Changes in liquid reserves in commercial banks orchestrated by the central bank (bank lending being constrained by a multiplier of their liquidity) =/= license to print money or magic
this is false, it would work to a certain extent, but it's not actually happening in the actual banking system. The Bank of England among others confessed this last year.
When you pay back your debt; doesnt only the banks debt to you dissapear from their balance sheet?? They still have the asset-part of the balance sheet from giving you the loan; dont they?
+Jan Thore Yes thats true. They have the asset part back. They loan or do not loan as they see fit (They keep some always in reserve) but if they dont 'reloan' that debt then it 'disappears' from the flow of money thru society. When Credit Froze in '09 that was the problem.
Of course there is. That's the primary source of banks' funding.
Gonna share it, doubt anybody will watch it though :(
also before this that is way the light as well not the right way as well
What do you literally mean by saying "it disappears"?
Land value taxation prevents this part of the cycle.
really well Video! Thanks!
Now when Carlin explains it, well it all makes sense.
I agree, that's a great idea rageagainstmyhatchet.
Yah it's educative
money is piece of paper or a piece of metal
That makes perfect sense.
intéressant !
Spanish version
If you pay back the loan with interest then the money supply should increase no (??)
Only in a manner of speaking. The money which is outstanding and 'in circulation' is of a certain amount and books are kept as to how much there is out there. The interest you have given the bank is really just 'channeling' money from another source (such as your paycheck) and then back to the bank. Its not really 'new' money. Its a drink from the flow of money thru society that the bank gets back from you. Banks sell bank notes to investors. Thats how money gets created out of nothing.
just noticed I forgot to thank you for your reply ! I'm reading more about economics and I get it now. thanks again
The banks cannot create this money themselves. It is created by the central bank of sovereign nations.
no
Minute 1.20 "...Bank make the profit by charging interest rates.." - THIS IS THE MAJOR MISTAKE IN THE SYSTEM. Banks don't need any profit from giving a loans. Why? Becouse bankers can create money for themselves. Bank as company should have account in his own banking system, and create money for maintnance and keep his activity(wages for emplyee). Very important is to understand differences between keeping activity and running business. Banks can't running business anymore... just keeping activity.
Greetz for All, and peace on the world. (Sorry... english is my second language).
Then you might as well remove banks entirely and let the government directly do the lending of money.
I do not think we need money at all to live.
Money is essentially just something a society agrees on to use to make trade easier. That's all it really is and all it really should be.
This video is communist.
Leonardo no and red scares don’t work anymore sorry.
Samuel Vela in reality, there aren't any ideologies, there is only math.
This channel states that banks should be public while there are scientific papers that show government banks underperform.
Something is wrong with them.
Leonardo can you show me the scientific papers where government banks inevitably underperform?
Samuel Vela yes, here: www.sciencedirect.com/science/article/pii/S1042957311000271
Leonardo Thanks! I read the paper and it seems to be a paper made solely of a “political interference hypothesis” . Maybe if they tested their hypothesis with direct evidence rather than narrow correlational data we can see what happen then? Ironically this makes an ideological assumption, that public banking is inevitably deadweight and unproductive to the economy. Even through in time immemorial public financial institutions are what led to economic growth and public infrastructure. Take for example the national bank created to promote the industrial and agricultural sectors of society before and after the American civil war. Living standards and economic output were the highest even compared to other highly developed countries and Abraham Lincoln was well known in this. For my part of where I got direct evidence like this. Was in reading the books of Michael Hudson. Who points out the necessities of public spending and role into the economy (public infrastructure, issuing currency, etc) id highly recommend you to take a look at the “American protectionist takeoff” “killing the host” and “the bubble and beyond”. I’d call them the creams of the crop in many of the empirical books of the economy I read.
This is by far, the worst explanation of what money is.
What are your expectations on a 2:34 min video?
Well, its not that it takes a long time to explain what money is. Its just paper thats worth something lol ;) naa kidding. But I didnt like the explanation of it here.
What didn't you like about it? I thought it was a very good explanation considering the length of the video and the size of the content - it gets to the heart of the fact that the financial system is responsible for our economic crises.
oohhh really? great insight...
What is a better explanation?