If you enjoyed the video: consider buying me a virtual coffee at ko-fi.com/moneymacro or supporting long term by becoming a member or Patron. As per usual, my sources can be found in the description and I will feature the best critiques of my work here under this comment (so don't comment under here please). If you make strong claims that are contradicted by data, such as central banking is one big conspiracy and inflation only happened after central banking, please provide me with credible sources (e.g. data / historical sources / academic papers) and I will consider them as well :) Oh and scammer in the comments!!! I will NEVER ask you to contact me by phone.
Hi, love your channel, but the ending was factually incorrect, I believe. Britain suffered a banking crisis in the 1820s, then again in the 1840s, and then again in the 1870s and 1890s. In fact, I'd love to see you dive into these crises, because monetary economists at the time (the Currency and Banking Schools) had a lot of debate over them, and I'd love to learn more about what happened from a professional economist with great research skills. I appreciate your channel, keep at it!
@@fatpotatoe6039 I think I should have been more clear about the time period. I meant after the Bagehot rule was adopted in the second half of the 19th century. Still then, my source states that there were not more crisis after 1866 www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/2007-economic-commentaries/ec-20071201-a-brief-history-of-central-banks.aspx Did I put too much trust in it?
@@MoneyMacro Aren't all of the earlier crises arguably connected to easy money from the Bank of England, from what I've read? What are your thoughts on them? Perhaps the Bagehot Rule was the correct monetary policy. I'd also like to know if you have any thoughts on the "Theory of Free Banking" by George Selgin (I've read quite a few of the chapters).
Finally some talk about riksbanken. Another fun fact is that it was the first central bank to introduce a negative interest rate. Maybe a potential topic for a future video?
You are doing such a good job presenting this material. This channel really has the potential to get quite big. I think a lot of people are interested in getting thorough and engaging analysis of all these economic topics. Economics is a subject which can be both extremely exciting and interesting but also bone dry. In high school economics was my most hated subject. It was just so incredibly boring. Not because of theory, because I have been into physics, chemistry, math etc for quite some time, but all these Bob and Alice setup a Lemond stand examples ruin economics as a subject. Despite the Wealth of Nations being a long read, it was among the first economics books which got me engaged. The same can be said about Freaconomics or the Undercover Economists. I believe economics is best taught when paired with interesting real world history and analysis of our society. So many school books seem to want to get to the point so fast, that they rip out all the parts which provide spicy to the story. They think by making the page count half as long, people will read and grasp the material in half the time. Yet it becomes 4x more boring, so you spend 4x the time just slogging through. A short unengaging text is "longer" than a longer engaging text.
Very, VERY glad I found this channel. Towards the tail end of my Economics BSc, I felt so confused and frustrated about the 'novelty' having worn off for me. In my university, the teaching was incredibly dry and not very inspiring, and left me wondering if I even cared for economics at all. I thought maybe I'd chosen the wrong path. On a whim, I signed up for a master's program that taught innovation economics and all sorts of heterodox economic theory. And by complete accident, I discovered Joeri's channel around the same time. This has totally rekindled the fire for me! Great videos, keep it up:-)
Thanks for sharing. I have a cousin persuing a Master's in Economics.(We're in South Africa and he is persuing it through a Swedish university) Economics is a field I have not had much gees(emotional energy) for but this channel makes the content very digestable and that much more fun to engage with.
@@patriciajane3436 Same here, I made $12,400 profits on investing since I started trading with Matthew Smith his trading strategies are too notch am winning consistently trading with Mr Matthew Smith.
How will you forever grow the economy? With 2 new earth's in space? Or destroying one half to double the other half. Or make 2/3 poor to give the grow to the 1/1 to make grow?
It's so interesting because you provide wide background - how banking was connected to wider economy and individual interests... that would be unbelievable if there was no corruption. And your videos allow to understand other aspects of history better. Thank you.
Man, your videos are amazing. I'm glad I discovered your channel, it's more dynamic than the flagship of econ content creation (Economics Explained). After high school is over, I'm seriously considering applying for a BsC in the area, and it's great to see inspiring channels such as yours. Keep up the good job, Jordi!
@@MoneyMacro Joeri, you're corrupting the youth! Encouraging them to get into the dismal science ... oh my. :-) Seriously, there's no higher compliment, and I can see why. Lucas, go for it! There is always a need for economists who can really explain things to the world.
The story of central banks is essentially to fund the military adventurism of the ruling class, who don't have the money to pay for war, and end up gifting the financial class land instead. It's how wealthy financiers became nobles and aristocratic landowners.
Excellent research work Joeri! Many thanks for doing this and making it available on UA-cam. I learned a lot of things that I was not aware of. We can always make some rules on how we should do business and then give the participate that agree to the rules names such as merchants, manufactures, farmers, consumers, bankers, along with many other types participants. The rules can always be changed to try to improve things or make things easier or to make things more secure. Whether the transactions are made with gold and silver coins or other items that the participants agree too or by a hand shake or by documenting items in ledgers does not really matter as long as the participants are honest and trustworthy and follow the rules they have agreed to. It really does not matter what money and financial system is used as long as the participants are honest and trustworthy and follow the rules! The problems and issues that have plagued money and financial systems throughout history is that there are always a considerable number of participants that are not honest and trustworthy and engage in corrupt and criminal activities for personal gain and for power and glory. Not really sure if coming up with new rules and systems will ever solve this problem. Perhaps with the advancing computer and internet technologies the corrupt and criminal activity can be kept under control much better.
Digital technology will make (and has made) some methods of engaging in such activities more difficult and less profitable, and others easier and more profitable, much like any other innovation. Ultimately, the important bit is the rule-set and enforcement there of. As you said, there are always people who will try to exploit or abuse the system, so rules that account for this and minimize perverse incentives, (thereby discouraging malicious actions by rendering them less rewarding than benevolent actions) will generally work better than those that do not. Setting up rules that incentivize benevolence rather than malice will tend to minimize the number of large scale abuses, as such are usually perpetuated by reasonably intelligent, but problematically self interested, individuals doing what seems to be in their best interests. Small scale abuses tend to be a function of different processes, often involving the ignorant, stupid, and/or desperate. Such are generally prevented by first removing the incentive to engage in such, and then by ensuring that those who do anyway are caught swiftly and reliably (beyond a certain minimum needed to render punishment relevant at all, the likelihood of being caught is far more of a discouragement than the harshness of the punishment when and if you are.) Most Economic ideologies inevitably fall over when their adherents loose sight of these rather basic facts of humanity (ideologies based in things other than economics tend to run into problems with different traits of humanity, though in a similar way.)
as far as youtube channels go, some people just have it and some dont, this channel has it, it's clear concise, and most important it is entertaining, if you dont entertain, you dont retain the viewers interest. these clips are informative and entertaining, thats a winning formula
Very good and interesting video once again. If you really wanted to take conspiracy theories on though, I think a longer elaboration on their private ownership is needed. The terms of the Fed are still unknown, but how the owners of the BoE where bought out gives a hint of the direction we should be thinking of.
Yeah. Perhaps this stuff is worthy of a lengthy response video. I couldn't really get into it here because I also use this video in a University course where these conspiracy theories are extremely fringe (as opposed to on UA-cam).
@@MoneyMacro Ahh right, I understand. I hope it can enter your backlog of video ideas :D. I think i'd be really helpful in the battle against conspiracies. (and I also really like to learn more about it myself, I read the wikipedia pages, but learning that indeed central banks where/are privately owned and payed dividends just pushes you more towards conspiracies...)
Hey @Marco, love your videos. Just so you know, the Roman Empire had a bank run (I think it was in 33 AD), so they invented a bank for banks with a cash reserve to prevent future bank runs. It's pretty obscure knowledge, so I'm not sure if it was just overlooked, as it's easy to do, or maybe the roman central bank didn't count for some reason, but it regardless it seems worthwhile mentioning it, even as a footnote. I consider it the first central bank.
@@MoneyMacro Ha, I think Economics Explained covered it. I tried finding the video awhile back because it also discuses how a Chinese emperor experimented with proto-MMT (my words, not how it's described in the video). I couldn't find it, so either I missed it or it was a different channel. I'm pretty sure the History of Rome podcast also covered the Roman banks.
@@MoneyMacro I think he's exaggerating a little bit. To my knowledge, the events went something like this: Many wealthy men in Rome invested their fortune by loaning money. There was also a law stating that they should hold at least 1/3 of their assets in Italian land but that law was widely flouted. When that law started to be enforced again many loans were suddenly recalled so that the men in question could purchase the requisite land. Many borrowers sold land to try to meet the recalled loans which caused land prices to fall. The creditors in turn tried to delay their land purchases so that the prices would fall more and they could buy the land at a cheaper price. This lead to a vicious circle of plummeting land prices and credit crunch. Emperor Tiberius was eventually able to halt the crisis by, among other things, providing large amounts of credit. I'm a bit skeptical if that would really qualify as a central bank.
@@MoneyMacro I agree and additionally I wouldn't classify the crisis as a bank run. Many borrowers were badly hurt but it was because they were suddenly ordered to pay back a substantial part of their loans.
Im subscribed to +300 channels, but lately this one is getting top10 place for sure, top1 in economics, and i get the feeling i got in early! Hopefully you went full time
Hey, non-economist here. Very interesting, and historical (‘evolutionary’) take on concepts is much more understandable and appealing for me. Now, if you’re doing the continuation of this topic, could you debunk/clarify a tidbit I heard about rapid rise of income inequality since the abolition of gold standard? Thanks
I was hoping Walter Bagehot would make an appearance. I love how you carefully explain your principles and then move forward through the messy reality of history. It anchors the story very well!
Have you considered making videos about counties economies and what makes there economies unique compared to others? Absolutely love your videos and appreciate the amount of research and work you put in every one :)
I think you gloss over America's experience with central banking/free banking a bit too much, though that might be worth its own video. During the late 18th century and early 19th there was a central bank and it was ultimately disbanded due to problems with stability. Following that there was a free banking system that was very stable and effective, it was similar to the Scottish free banking system which was likewise very stable. This system only came to an end during the Civil War, mostly for political reasons. The system that followed was a regional banking system and that system wasn't stable, which led to the creation of the Fed in 1913. Frankly I think the pre-Civil War system had a lot going for it and it's a bit unfair to lump all pre-1913 banking systems together.
This video is so well done, I come back to it again and again. Sometimes I watch it at night to help me fall asleep lol. Thank you so much for making it!
I learned that the Templars issued letters of credit that pilgrims could cash in when the got to Jerusalem. First international bankers and first tourists?
Great channel! Love these videos doing the research on the topic, without any personal opinions on how to adjust the system or how to change the world. Please do one video if there is a relationship between the Federal reserve creation in 1913 and the 1929 stock market crash.
the relation is that between 1913 and 1929 and after, the Fed didn't know yet what to do and how to handle things, didn't have enough monetary experience. Perfection does not exist, its an evolution. And no system is perfect.
I think central banks are fine as long as they have at least 100% reserves and ideally have 110% reserves or more for improved stability of the economy but I'd rather a banking system similar to that of the USA before the creation of the Federal Reserve System in 1913 where each bank is required to be a member of a clearing house which would (or rather should) have at least 100% of reserves which would end the central bank monopoly and would decentralise the national banking industry. For trade, each clearing house would print bank notes and would be required to use the same currency symbol, and currency standardisation i.e. all currency from each clearing house is divided into 100 units (cents) out of every whole unit (dollar) and not some CHs using 100 subdivision and others using the base-12 system like the pre-decimal GBP, IEP on a national level... ...a current system like this would probably be Hong Kong, Scottish & Northern Irish, British Overseas Territories (Isle of Man, Falkland Islands, Saint Helena, Gibraltar, Jersey, Guernsey etc.) banks printing their own notes
Thats sounds like a super inefficient version of what we have now. Why handicap yourself with all this red tape when no one else is going to do it it seems to be based on nothing.
but right now central banking system is an hole sale lie and works only for its owners and funds - even gov or more like parliaments that are suppose to have over watch have been bought and this next step they plan - central bank digital currency is new form of slavery - total loss of privacy and owenership - bank and gov would deside what, where , when and how much !
@@hoponasu2471Calm down there brother, you might pop a vein. There is no "lie", the middle class has absolutely benefitted from central banking through lower interest rates and more stability. You also might wanna read up on slavery a bit honey. Owning CB liabilities is not in anyway akin to slavery. Its also not stripping anyones private property? Like what? CBs are indepenent agencies (quasi private) while normal banks are private ie provate property.
@@disser3849 Well CB Digital Currencies do help end privacy and by proxy freedom because it would allow the central bank to see all transactions which would then give this data to the authoritarian government while also having the power to put a time limit on money i.e. that €300 in your bank account must be spent in 2 weeks if your on the Univeral Basic Income Scheme. All CBDCs are is a centralised version of Bitcoin and Bitcoin offers zero privacy benefits over paper notes and minted coins and actually takes them away. Also most Central Banks are not really independent agencies especially if they're owned by the government in whole or in part such as the Bank of England which was nationalised in 1947-1948 or the European Central Bank which is an arm of the European Union or the US Federal Reserve Bank(s) which has unnamed investors which they refuse to disclose while many non-central (consumer/business facing) banks are not privately owned and are in fact owned by the government such as most banks in the PRC (China) or are part-government owned such as the NatWest Group (England) [legally called *Nat*ional *West*minister PLC]
@@wclifton968gameplaystutorials Well obviously no. Freedom is not defined as "make transactions that law enforcement cant track". We have no idea if CBs are even going to track those transactions or not and how they will be secured. At least at this moment European CBs official stance is that the information will be private and not harvested like Facebook does. Not sure about possible criminal transactions. I have worked my whole life in different private sector companies and every single transactions we have made has been completely traceable wire payments (true for literally all companies that are not doing shady shit). This has absolutely nothing to do with our "freedom". Unless you mean freedom in that weird libertarian sense where a poor person should be able to enslave himself and I should be free of the coercion of the police to kill people. Besides, this whole point is moot because you can still use your cash or old deposits (though people really hate cash, me included). And as I said, CBs are quasi private institutions. As in their goverments cannot force them to raise/lower rates or continue/reduce qe. In United States if want to become part of the Federal reserve system, you need to fulfill certain regulatory requirements. In exchange you get a stock and a vote for you local FED board (its actually 12 FED banks, not one). All national banks need to be part of the Federal Reserve system. This is not a secret and it is transparent. And its actually a way to make FED even more independant. President and the senate pick the governors though. Most of the private banks in the western world are owned by private investors, not state owners. You have some public wealth fundd etc that might own some stock in banks, but its a very minor portion.
haha yeah I would have loved to finish the story to the modern era... I might at some point. But, for now .... I will start working on my next videos on the current inflation debate and the Economy of Afghanistan.
could you change the border around video thumbnails? the orange is too close to the red bar youtube shows when you've watched a video, so it's hard to see which videos i've watched already
Joeri, "Public emergency" you have right, but I think you mean "privately owned" banks in 14th century "Italy." I don't know about Italy. In English English I think they might have been called Piedmontese until fairly recently. And I sure don't know that anything within a horse-ride of Switzerland is called "Southern" Europe.
How lucky is Yuri... Helping Love Almighty's jillionaires being fruitful and multiplying even better.. ..by their fruits you shall know them !! And the Fruits of the Spirit are love, joy? Peace, patience, kindness, goodness, and self control . against such there is no law !! How very very valuable at this stage of the New World Order 🌎 !! Working for Love Almighty and loving it !!
as an f1 fan looking to learn about stuff outside of f1, it was quite triggering that not even in an economics video can i escape the dutch national anthem in 2023 haha
He criticized and condemned the priests/politicians. Then, he went to their bosses, the moneylenders, and whipped them out of the Temple. That’s when they put the hit out on him.
I found this informative, but it skips over the 1920-1921 and 1929-1946 depressions that were enabled by the Federal Reserve System. The Great Depression was far more destabilizing than any of the banking problems the US had in the 19th Century.
Uhmm first recorded bank notes? In 1661? By bank of Stockholm? In what sense? Last time I checked that credit goes to Tang and Song Dynasty China between years 618 ~ 1279
You're no longer surprised about central banking conspiracies? Those guys want a XIX century banking system. Ultra divided, with sky rocket interest rates and big financial unstability. Without a big bank backed by the state, most modern infraestructure, going out of Big Recessions would be imposible
@@night6724 Haha well yes I might actually do a debunking of the Netherlands being a 'perfect' economy. It is not. Your regulation story though .... I heard they don't enforce regulations in South Sudan..... Amazing place to start a business.
I watched it. I don't understand his point though... Every major civilization had a debt based monetary system. Not a single exception. How can you then make the argument that we should switch to non-debt money.
@@MoneyMacro I don’t think that was his point, more so exposing those that exploit these systems and presenting other type of systems that have been used in lieu in the past, like the tally sticks (used in Britain for centuries before debt-money), colonial script or greenbacks to name some of the ones mentioned by Still. And to add my opinion, no centralised/top down system thrives or is beneficial to the people for long, these are prime for exploitation and corruption, (private) central banking is no exception.
I feel the same way. My day job (teaching at university) was super intense these last few weeks. I'm trying to become more consistent. But, it might take a while
I think the truth is you can’t have financial crisis if economy don’t grow much in the first place. And central bank is needed for high economy growth to happen in the first place.
Hoi Joeri, kleine tip, de rood-oranje border die je in je thumbnails gebruikt maakt de rode watched indicator zeer lastig te zien. Dat kan er toe leiden dat mensen videos overslaan omdat ze denken dat ze die al gezien hebben of juist op een video klikken die ze al eerder gezien hebben in de veronderstelling dat ze dat nog niet gedaan hebben en daardoor denken dat het een repost is of wellicht geirriteerd raken omdat ze tijd verspillen.
Dear Author, do you think the flourished banking industry in NL is to some extent linked to the fact that the main European river Rhine leads to the NL itself? Geography pre-destined the monetary (banking) success?
The Rhine leads to Switzerland, past that is the river Ticino, a tributary of the river Po leading to Venice. from Wikipedia: 'The opening of the Schöllenen Gorge for traffic was an important factor in the original Swiss Confederacy. The three regions of Uri, Schwyz and Unterwalden (the Waldstätten or "forest communities") gained imperial immediacy under the Hohenstaufen emperors still in the first half of the 13th century. An important aspect of the early confederacy, expressed in the Pfaffenbrief of 1370, was the guarantee of peace along the road from Zürich to the Gotthard Pass.' No Gotthard pass, no Switzerland.
Love the video Yoeri, thanks. Just one tiny cosmetical detail: Flevoland shouldn’t exist on your historical maps. Howerver I understand fixing this could open up a can of worms with other insignificant details that could be fixed.
It is clear to me that the main reason central banks became popular was that it gave the states deploying them more power: increasing "state capacity", as political scientists would call it. So whether or not it has a net benefit on the economy of the citizens would be unintended side effect. The intended effect is greater control given to the state, now that they have a social institution that can inject money or remove it, at the will of the state. Therefore the problem with analyzing the effectiveness of central banks is that it is necessarily tied to politics, since the definition of a central bank ties it to the state apparatus. So we end up with way too many factors, since local politics, international politics, and the banks' own feedback loops can all influence the result, I wouldn't put any weight on vague conclusions such as "the n-centuries/decades before central banks were more/less stable than m-centuries/decades after" As with the Swedish example, perhaps you could argue that the increased state capacity prolonged the power of the Swedish Empire, which presumably is good for the Swedish economy (if not for their foes). But then that geo-political competition led to retaliation by its neighboring rival states, so should we attribute the eventual fall-out to the central bank too? Perhaps if the Swedish state did not have the power of the central bank, things would have turned out different, even for the better. This is why it feels impossible to evaluate the effectiveness of the central banks. You'd first have to have a good political theory about what is a good state, or even a philosophical theory of consequentialism in general.
Thanks for presenting these things in a way that even a layman like me can kinda follow the story. Because the jargon used by most financial people too often turned me off ... Dank U vel.
Hi, I watch your Chanel. I have recently written a book on Macroeconomic, Titled Plural Macroeconomics. I have posted a copy to you by snail mail on 3 rd November. It is stuck at Netherlands customs as on 15th. Some titles of the chapters are really click baits. I list them below: 1 Macroeconomic measurements 2 Macroeconomic money as a dynamic entity. 3 Multiple and Dynamic seigniorage hypothesis 4 State is violence 5 Distribution - deals with distribution between three markets: money, good and services, assets. 6 Societal memory and entropy Request you to go through it. I had posted about 200 copies of it to many academics. You were one of the pick. Regards
The banking system that existed in the US before creating the FED was not a free banking at all. For real free banking systems you should look at Canada or Scothland. In fact, Bagehot in the book that you got his quote from, said that the correct model of banking was the one that Scothland had.
every example of a bank you have used, you have said that they practised fractional reserve banking illegally and immorally without telling their depositors. And in secret lending money and bank notes out that it did not have to their rich friends, such as east india company. printing more bank notes than they had gold and silver in reserves and profiteering from this. and becoming bankrupt from it, losing their depositors money when doing so. the act of printing more money aka bank notes than already exists in the money supply, is the cause of inflation. and the act of printing bank notes in secret to buy assets and steal wealth through interest and inflation, was and is a giant conspiracy. As it defrauds and steals from everyone.
For the South European banks and Bank of Amsterdam indeed. The full reserve banks lied. Riksbank and Bank of England where clear from the start in that they were not 100% reserve banks. Inflation doesn't really correlate with the creation of these central banks though if I look at the data
@@MoneyMacro Hi! Is it possible to link some of that data? I just read an article from Reinhart and Rogoff named "Shifting Mandates: The Federal Reserve’s First Centennial". They quickly go through the CPI in USA before and after FED and it seems like inflation pretty much explodes after creation of the FED. Now obviously other positive metrics like the GDP have also exploded and the real wages have actually risen (hence the average worker is way better off today than in the 1800s).
The bank of England funded the ending of the slave trade aswel as earlier helping prop it up. I would say funding the ending of the slave trade is significant enough to mention.
Great channel !! Recently I was watching some old American presidential debate in which ron paul was suggesting ending the federal bank to counter inflation can you please make a video about that idea and what will be it's impacts if we do that in today's world and please bear with my english it's not my first language.
yeah haha it would have an insane impact. Given some of the comments on this vid, I think I should at some point do a response video for these types of ideas.
“In 1694, the Bank of England was created, the model on which all central banks in Europe and later in the USA was replicated. Soon thereafter started, what modern academics call, “modernity”, which in reality meant reducing people to servitude. English big time financiers did not like the fact that early US colonies had issued their own money and showed hostility to the Bank of England. The attempt of England at abolishing US currency was also the prime cause of the American Revolution. To a large extent 19th century America prospered precisely because of the absence of a central bank. One must not forget, as the author states, that Andrew Jackson’s presidential campaign was carried out under the banner “VOTE ANDREW JACKSON, NO BANK!” The ominous year for the USA, as well as for the entire world was the creation of the Federal Reserve Bank in 1913, which indirectly precipitated the Western world into two world wars and hundreds of local wars all over the world.” Excerpt From A History of Central Banking and the Enslavement of Mankind Stephen Mitford Goodson
Best book on Banking and Finance: (Armour, 2016) Principles of Financial Regulation The Fed and Inequality: (Petrou, 2021) Engine of Inequality: The Fed and the Future of Wealth (Dietsch, 2018) Do Central Banks Serve the People?
NO, not really. That was true in the distant past but is no longer true. Today, some banks have some aspect of private ownership, but that is a rather technical determination. The Federal Reserve technically is, in part, privately owned, but when you look at the particulars, you can see that the private ownership aspect of the FED is nominal at best. The FED requires the member banks to buy shares in the FED, and the number of shares is determined by the size of the member bank. The member banks may not sell their shares, and their shares come with no voting rights. The FED pays only about 6% of its annual profit to the member banks and 94% is paid to the US Treasury, so it's not really privately owned. The European Central Bank is similar, and the banks of these countries have some sort of private ownership: Japan, Italy, Switzerland, Belgium, Greece, Turkey, and South Africa.
If you enjoyed the video: consider buying me a virtual coffee at ko-fi.com/moneymacro or supporting long term by becoming a member or Patron. As per usual, my sources can be found in the description and I will feature the best critiques of my work here under this comment (so don't comment under here please).
If you make strong claims that are contradicted by data, such as central banking is one big conspiracy and inflation only happened after central banking, please provide me with credible sources (e.g. data / historical sources / academic papers) and I will consider them as well :)
Oh and scammer in the comments!!! I will NEVER ask you to contact me by phone.
Hi, love your channel, but the ending was factually incorrect, I believe.
Britain suffered a banking crisis in the 1820s, then again in the 1840s, and then again in the 1870s and 1890s. In fact, I'd love to see you dive into these crises, because monetary economists at the time (the Currency and Banking Schools) had a lot of debate over them, and I'd love to learn more about what happened from a professional economist with great research skills. I appreciate your channel, keep at it!
@@fatpotatoe6039 I think I should have been more clear about the time period. I meant after the Bagehot rule was adopted in the second half of the 19th century. Still then, my source states that there were not more crisis after 1866
www.clevelandfed.org/en/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/2007-economic-commentaries/ec-20071201-a-brief-history-of-central-banks.aspx
Did I put too much trust in it?
@@MoneyMacro Aren't all of the earlier crises arguably connected to easy money from the Bank of England, from what I've read? What are your thoughts on them? Perhaps the Bagehot Rule was the correct monetary policy.
I'd also like to know if you have any thoughts on the "Theory of Free Banking" by George Selgin (I've read quite a few of the chapters).
@@MoneyMacro Thanks for the source nonetheless! More to read, the better!
Ik heb het idee dat je gewoon Nederlands bent
"all wars are bankers wars"
That was the real reason for the : Boer wars, both world wars Russian revolution
tiny hats.
"Your people started all the wars..."
Mel Gibson
@@Wumaomaster1428International Zionist bankers are the devil on earth, when will people wake up to their lies ?
Peace and life are for cowards, poor people should sacrifice themselves to God
Finally some talk about riksbanken. Another fun fact is that it was the first central bank to introduce a negative interest rate. Maybe a potential topic for a future video?
You are doing such a good job presenting this material. This channel really has the potential to get quite big. I think a lot of people are interested in getting thorough and engaging analysis of all these economic topics. Economics is a subject which can be both extremely exciting and interesting but also bone dry. In high school economics was my most hated subject. It was just so incredibly boring. Not because of theory, because I have been into physics, chemistry, math etc for quite some time, but all these Bob and Alice setup a Lemond stand examples ruin economics as a subject.
Despite the Wealth of Nations being a long read, it was among the first economics books which got me engaged. The same can be said about Freaconomics or the Undercover Economists. I believe economics is best taught when paired with interesting real world history and analysis of our society. So many school books seem to want to get to the point so fast, that they rip out all the parts which provide spicy to the story. They think by making the page count half as long, people will read and grasp the material in half the time. Yet it becomes 4x more boring, so you spend 4x the time just slogging through. A short unengaging text is "longer" than a longer engaging text.
Very, VERY glad I found this channel. Towards the tail end of my Economics BSc, I felt so confused and frustrated about the 'novelty' having worn off for me. In my university, the teaching was incredibly dry and not very inspiring, and left me wondering if I even cared for economics at all. I thought maybe I'd chosen the wrong path.
On a whim, I signed up for a master's program that taught innovation economics and all sorts of heterodox economic theory. And by complete accident, I discovered Joeri's channel around the same time. This has totally rekindled the fire for me! Great videos, keep it up:-)
What universities are you talking about?
Thanks for sharing. I have a cousin persuing a Master's in Economics.(We're in South Africa and he is persuing it through a Swedish university) Economics is a field I have not had much gees(emotional energy) for but this channel makes the content very digestable and that much more fun to engage with.
I'm so happy ☺️ my life is totally changed. I've been earning $10,250 returns from my $4,000 Investment every 13 days
@@patriciajane3436 Same here, I made $12,400 profits on investing since I started trading with Matthew Smith his trading strategies are too notch am winning consistently trading with Mr Matthew Smith.
@huei I heard a lot of investing with Mr MATTEW smith and how good he is, please how safe are the profit?
I love this channel so much! Keep up the amazing work!
If a central bank cannot grow an economy, it has no right to devalue its notes. It's like a beekeeper who takes too much honey and kills the hive.
How will you forever grow the economy? With 2 new earth's in space? Or destroying one half to double the other half. Or make 2/3 poor to give the grow to the 1/1 to make grow?
@@deniseproxima2601it seems the banks jus want to own everything,,and have most people live in almost poverty
@@deniseproxima2601 by nationalizing minting and monetary policy based on the nations trade and production and not the by the rules of some bankers
It's so interesting because you provide wide background - how banking was connected to wider economy and individual interests... that would be unbelievable if there was no corruption. And your videos allow to understand other aspects of history better. Thank you.
Not a mention of Rothschild?
The video would be taken down otherwise
Antiseptic comment, you are dangerous you need democracy
I was thinking the same thing but facts are facts perhaps the beginnings of the concept of central banking are left up to interpretation...
@@RisingInTheFleshAbsolutely, he knows who the Rothschilds are! What do people expect? They know we live under Censorship!
You must be new if you actually expected any of "them" to be named.
Man, your videos are amazing. I'm glad I discovered your channel, it's more dynamic than the flagship of econ content creation (Economics Explained). After high school is over, I'm seriously considering applying for a BsC in the area, and it's great to see inspiring channels such as yours. Keep up the good job, Jordi!
Thanks!!! Will do. I love making these videos.
I highly recommend you to check out Joeri's response video to Economics Explained video about Wealth Inequality in Netherlands.
@@ak47training I've started to watch this video, still need to finish it. Thanks for the recommendation anyway!
@@MoneyMacro Joeri, you're corrupting the youth! Encouraging them to get into the dismal science ... oh my. :-) Seriously, there's no higher compliment, and I can see why. Lucas, go for it! There is always a need for economists who can really explain things to the world.
"A central bank provides financial services to the government." That is an understatement.
The story of central banks is essentially to fund the military adventurism of the ruling class, who don't have the money to pay for war, and end up gifting the financial class land instead. It's how wealthy financiers became nobles and aristocratic landowners.
Excellent research work Joeri! Many thanks for doing this and making it available on UA-cam. I learned a lot of things that I was not aware of. We can always make some rules on how we should do business and then give the participate that agree to the rules names such as merchants, manufactures, farmers, consumers, bankers, along with many other types participants. The rules can always be changed to try to improve things or make things easier or to make things more secure. Whether the transactions are made with gold and silver coins or other items that the participants agree too or by a hand shake or by documenting items in ledgers does not really matter as long as the participants are honest and trustworthy and follow the rules they have agreed to. It really does not matter what money and financial system is used as long as the participants are honest and trustworthy and follow the rules! The problems and issues that have plagued money and financial systems throughout history is that there are always a considerable number of participants that are not honest and trustworthy and engage in corrupt and criminal activities for personal gain and for power and glory. Not really sure if coming up with new rules and systems will ever solve this problem. Perhaps with the advancing computer and internet technologies the corrupt and criminal activity can be kept under control much better.
Digital technology will make (and has made) some methods of engaging in such activities more difficult and less profitable, and others easier and more profitable, much like any other innovation. Ultimately, the important bit is the rule-set and enforcement there of. As you said, there are always people who will try to exploit or abuse the system, so rules that account for this and minimize perverse incentives, (thereby discouraging malicious actions by rendering them less rewarding than benevolent actions) will generally work better than those that do not.
Setting up rules that incentivize benevolence rather than malice will tend to minimize the number of large scale abuses, as such are usually perpetuated by reasonably intelligent, but problematically self interested, individuals doing what seems to be in their best interests. Small scale abuses tend to be a function of different processes, often involving the ignorant, stupid, and/or desperate. Such are generally prevented by first removing the incentive to engage in such, and then by ensuring that those who do anyway are caught swiftly and reliably (beyond a certain minimum needed to render punishment relevant at all, the likelihood of being caught is far more of a discouragement than the harshness of the punishment when and if you are.)
Most Economic ideologies inevitably fall over when their adherents loose sight of these rather basic facts of humanity (ideologies based in things other than economics tend to run into problems with different traits of humanity, though in a similar way.)
as far as youtube channels go, some people just have it and some dont, this channel has it, it's clear concise, and most important it is entertaining, if you dont entertain, you dont retain the viewers interest.
these clips are informative and entertaining, thats a winning formula
Thanks Fred! That is exactly the balance I am trying to get right :)
Swede here and I had no idea about Riksbanken role in all of this. Great video!
Happy Hanukkah to The people behind the central banks 😂😂
Your animations got a lot more interesting and well done lately! Keep up the great work!
Someone else helped me out with this particular video. I will tell him.
I am glad that your channel has provided a well-articulated explanation of the history of the Central Bank.
Central banks of Europe, Bank of England, and no mention of certain surname? (R)
Hehe. I couldn't find any historical sources detailing their involvement. Open to suggestions.
@@MoneyMacro wink twice if YT algo has you hostage
@@alfinal5787 ;)
7:49 funny how things never change
Thank you for posting - at times like our right now this background information is vital for everyone to understand what is at stake .
Thank you for your presentation , I watched all of it .
~ Crawford D. Smith in Indiana , U SA .
Very good and interesting video once again. If you really wanted to take conspiracy theories on though, I think a longer elaboration on their private ownership is needed. The terms of the Fed are still unknown, but how the owners of the BoE where bought out gives a hint of the direction we should be thinking of.
Yeah. Perhaps this stuff is worthy of a lengthy response video.
I couldn't really get into it here because I also use this video in a University course where these conspiracy theories are extremely fringe (as opposed to on UA-cam).
@@MoneyMacro Ahh right, I understand. I hope it can enter your backlog of video ideas :D. I think i'd be really helpful in the battle against conspiracies. (and I also really like to learn more about it myself, I read the wikipedia pages, but learning that indeed central banks where/are privately owned and payed dividends just pushes you more towards conspiracies...)
Great content and happy to see my hometown Middelburg mentioned, I have yet to learn about The Bank of Middelburg and am eager to do so!
Thanks! I love Middelburg's beautiful old city centre.
Hey @Marco, love your videos. Just so you know, the Roman Empire had a bank run (I think it was in 33 AD), so they invented a bank for banks with a cash reserve to prevent future bank runs. It's pretty obscure knowledge, so I'm not sure if it was just overlooked, as it's easy to do, or maybe the roman central bank didn't count for some reason, but it regardless it seems worthwhile mentioning it, even as a footnote. I consider it the first central bank.
interesting. Where did you read about this?
@@MoneyMacro Ha, I think Economics Explained covered it. I tried finding the video awhile back because it also discuses how a Chinese emperor experimented with proto-MMT (my words, not how it's described in the video). I couldn't find it, so either I missed it or it was a different channel. I'm pretty sure the History of Rome podcast also covered the Roman banks.
@@MoneyMacro I think he's exaggerating a little bit. To my knowledge, the events went something like this:
Many wealthy men in Rome invested their fortune by loaning money. There was also a law stating that they should hold at least 1/3 of their assets in Italian land but that law was widely flouted. When that law started to be enforced again many loans were suddenly recalled so that the men in question could purchase the requisite land. Many borrowers sold land to try to meet the recalled loans which caused land prices to fall. The creditors in turn tried to delay their land purchases so that the prices would fall more and they could buy the land at a cheaper price. This lead to a vicious circle of plummeting land prices and credit crunch. Emperor Tiberius was eventually able to halt the crisis by, among other things, providing large amounts of credit.
I'm a bit skeptical if that would really qualify as a central bank.
@@seneca983 ah yes I read that in my book "Money Changes Everything." Yeah probably too ad hoc to classify as a central bank :)
@@MoneyMacro I agree and additionally I wouldn't classify the crisis as a bank run. Many borrowers were badly hurt but it was because they were suddenly ordered to pay back a substantial part of their loans.
Teaching a Money & Banking class these days. Some of the elaborations in this video will be very helpful. Thank you very much!
Im subscribed to +300 channels, but lately this one is getting top10 place for sure, top1 in economics, and i get the feeling i got in early! Hopefully you went full time
Thanks!!! I'm not fulltime at the moment. I hope I can start doing that early next year.
Hahahaah the way you started speaking quieter at 16:05 when u said slave trade. Goeie video man veel geleerd.
Hey, non-economist here. Very interesting, and historical (‘evolutionary’) take on concepts is much more understandable and appealing for me.
Now, if you’re doing the continuation of this topic, could you debunk/clarify a tidbit I heard about rapid rise of income inequality since the abolition of gold standard? Thanks
Great video, looking forward to part two.
I was hoping Walter Bagehot would make an appearance. I love how you carefully explain your principles and then move forward through the messy reality of history. It anchors the story very well!
Thanks Erik!! Also for your continued support.
Have you considered making videos about counties economies and what makes there economies unique compared to others?
Absolutely love your videos and appreciate the amount of research and work you put in every one :)
Just came across this channel just now and wow, I love this content, the research and your presentation. Dat ik jullie nog niet kende!
I think you gloss over America's experience with central banking/free banking a bit too much, though that might be worth its own video.
During the late 18th century and early 19th there was a central bank and it was ultimately disbanded due to problems with stability.
Following that there was a free banking system that was very stable and effective, it was similar to the Scottish free banking system which was likewise very stable. This system only came to an end during the Civil War, mostly for political reasons.
The system that followed was a regional banking system and that system wasn't stable, which led to the creation of the Fed in 1913.
Frankly I think the pre-Civil War system had a lot going for it and it's a bit unfair to lump all pre-1913 banking systems together.
Yeah I think that is worth its own video at some point.
Murray Rothbard wrote a great book ‘The History of Money and Banking in the United States’. If you like history and finance a must read.
Banking was once ilegal all over the world because they understood what banking is
and then tiny hats happened.
This video is so well done, I come back to it again and again. Sometimes I watch it at night to help me fall asleep lol.
Thank you so much for making it!
Haha. Happy to hear that! Except for the falling asleep part ... I guess
I learned that the Templars issued letters of credit that pilgrims could cash in when the got to Jerusalem. First international bankers and first tourists?
hahaha yeah true they played a major part in the history of banking.
Very good work. Thank you.
I am so glad I found your educational video just when things look most confusing and contradictory. Thanks !
Great channel! Love these videos doing the research on the topic, without any personal opinions on how to adjust the system or how to change the world.
Please do one video if there is a relationship between the Federal reserve creation in 1913 and the 1929 stock market crash.
the relation is that between 1913 and 1929 and after, the Fed didn't know yet what to do and how to handle things, didn't have enough monetary experience. Perfection does not exist, its an evolution. And no system is perfect.
Read Jekyll island
I think central banks are fine as long as they have at least 100% reserves and ideally have 110% reserves or more for improved stability of the economy but I'd rather a banking system similar to that of the USA before the creation of the Federal Reserve System in 1913 where each bank is required to be a member of a clearing house which would (or rather should) have at least 100% of reserves which would end the central bank monopoly and would decentralise the national banking industry. For trade, each clearing house would print bank notes and would be required to use the same currency symbol, and currency standardisation i.e. all currency from each clearing house is divided into 100 units (cents) out of every whole unit (dollar) and not some CHs using 100 subdivision and others using the base-12 system like the pre-decimal GBP, IEP on a national level...
...a current system like this would probably be Hong Kong, Scottish & Northern Irish, British Overseas Territories (Isle of Man, Falkland Islands, Saint Helena, Gibraltar, Jersey, Guernsey etc.) banks printing their own notes
Thats sounds like a super inefficient version of what we have now. Why handicap yourself with all this red tape when no one else is going to do it it seems to be based on nothing.
but right now central banking system is an hole sale lie and works only for its owners and funds - even gov or more like parliaments that are suppose to have over watch have been bought and this next step they plan - central bank digital currency is new form of slavery - total loss of privacy and owenership - bank and gov would deside what, where , when and how much !
@@hoponasu2471Calm down there brother, you might pop a vein. There is no "lie", the middle class has absolutely benefitted from central banking through lower interest rates and more stability.
You also might wanna read up on slavery a bit honey. Owning CB liabilities is not in anyway akin to slavery. Its also not stripping anyones private property? Like what? CBs are indepenent agencies (quasi private) while normal banks are private ie provate property.
@@disser3849 Well CB Digital Currencies do help end privacy and by proxy freedom because it would allow the central bank to see all transactions which would then give this data to the authoritarian government while also having the power to put a time limit on money i.e. that €300 in your bank account must be spent in 2 weeks if your on the Univeral Basic Income Scheme.
All CBDCs are is a centralised version of Bitcoin and Bitcoin offers zero privacy benefits over paper notes and minted coins and actually takes them away.
Also most Central Banks are not really independent agencies especially if they're owned by the government in whole or in part such as the Bank of England which was nationalised in 1947-1948 or the European Central Bank which is an arm of the European Union or the US Federal Reserve Bank(s) which has unnamed investors which they refuse to disclose while many non-central (consumer/business facing) banks are not privately owned and are in fact owned by the government such as most banks in the PRC (China) or are part-government owned such as the NatWest Group (England) [legally called *Nat*ional *West*minister PLC]
@@wclifton968gameplaystutorials Well obviously no. Freedom is not defined as "make transactions that law enforcement cant track". We have no idea if CBs are even going to track those transactions or not and how they will be secured. At least at this moment European CBs official stance is that the information will be private and not harvested like Facebook does. Not sure about possible criminal transactions. I have worked my whole life in different private sector companies and every single transactions we have made has been completely traceable wire payments (true for literally all companies that are not doing shady shit). This has absolutely nothing to do with our "freedom". Unless you mean freedom in that weird libertarian sense where a poor person should be able to enslave himself and I should be free of the coercion of the police to kill people. Besides, this whole point is moot because you can still use your cash or old deposits (though people really hate cash, me included).
And as I said, CBs are quasi private institutions. As in their goverments cannot force them to raise/lower rates or continue/reduce qe. In United States if want to become part of the Federal reserve system, you need to fulfill certain regulatory requirements. In exchange you get a stock and a vote for you local FED board (its actually 12 FED banks, not one). All national banks need to be part of the Federal Reserve system. This is not a secret and it is transparent. And its actually a way to make FED even more independant. President and the senate pick the governors though.
Most of the private banks in the western world are owned by private investors, not state owners. You have some public wealth fundd etc that might own some stock in banks, but its a very minor portion.
Amazing content!! Happy to see the channel growing :)
Excellent video on history of Central Banking
Love your videos, and this was a great one...wish was longer! Maybe a part 2? 🤞
haha yeah I would have loved to finish the story to the modern era... I might at some point. But, for now .... I will start working on my next videos on the current inflation debate and the Economy of Afghanistan.
@@MoneyMacro Excellent...great topic for the next one...looking forward to it! 🙏
Central Banking should be done by National Governments, non debt currency.
American Green Backs worked wonderfully.
i thought the first bank note was issue by the chinese, from the chinese goverment tresury, with a promise to pay the bank note in full if cashed.
It's a bit lame .. I know. But, this was technically not a BANK note 😇
could you change the border around video thumbnails? the orange is too close to the red bar youtube shows when you've watched a video, so it's hard to see which videos i've watched already
Goddamn you have cliffhangers now
Joeri,
"Public emergency" you have right, but I think you mean "privately owned" banks in 14th century "Italy."
I don't know about Italy. In English English I think they might have been called Piedmontese until fairly recently. And I sure don't know that anything within a horse-ride of Switzerland is called "Southern" Europe.
Best central bank is obviously the Iron Bank
How lucky is Yuri...
Helping Love Almighty's jillionaires being fruitful and multiplying even better..
..by their fruits you shall know them !!
And the Fruits of the Spirit are love, joy? Peace, patience, kindness, goodness, and self control . against such there is no law !!
How very very valuable at this stage of the New World Order 🌎 !!
Working for Love Almighty and loving it !!
as an f1 fan looking to learn about stuff outside of f1, it was quite triggering that not even in an economics video can i escape the dutch national anthem in 2023 haha
Hehe. Go Max!
I like this channel, please keep on posting more videos. We need accurate information, which this channel provides.
Excellent! Please do one on trade liberalization and its effects on exports and imports.
How about that ? Real post-Doctorate of Divinity and Commerce in the eyes 👀 of Love !!
..loving it !!
...
He criticized and condemned the priests/politicians. Then, he went to their bosses, the moneylenders, and whipped them out of the Temple. That’s when they put the hit out on him.
I found this informative, but it skips over the 1920-1921 and 1929-1946 depressions that were enabled by the Federal Reserve System. The Great Depression was far more destabilizing than any of the banking problems the US had in the 19th Century.
Uhmm first recorded bank notes? In 1661? By bank of Stockholm? In what sense? Last time I checked that credit goes to Tang and Song Dynasty China between years 618 ~ 1279
That was a government note. Not a bank note
You're no longer surprised about central banking conspiracies?
Those guys want a XIX century banking system.
Ultra divided, with sky rocket interest rates and big financial unstability.
Without a big bank backed by the state, most modern infraestructure, going out of Big Recessions would be imposible
And do the people, who you don't like or could be dangerous in the military or prison?
Can you do more debunking economic narratives/myths? Thank you for making these educational contents. will we get another live Q&A soon?
Will do both more in the future :)
@@night6724 Haha well yes I might actually do a debunking of the Netherlands being a 'perfect' economy. It is not.
Your regulation story though .... I heard they don't enforce regulations in South Sudan..... Amazing place to start a business.
The DEBUNKOOOORRR
@@night6724 here comes the "free market" ppl that think the term means free of regulation.
@@night6724 define good
“Money Masters” by Bill Still has even more detailed information (longer).
I watched it. I don't understand his point though... Every major civilization had a debt based monetary system. Not a single exception. How can you then make the argument that we should switch to non-debt money.
@@MoneyMacro I don’t think that was his point, more so exposing those that exploit these systems and presenting other type of systems that have been used in lieu in the past, like the tally sticks (used in Britain for centuries before debt-money), colonial script or greenbacks to name some of the ones mentioned by Still. And to add my opinion, no centralised/top down system thrives or is beneficial to the people for long, these are prime for exploitation and corruption, (private) central banking is no exception.
Finally a new video!!
I feel the same way. My day job (teaching at university) was super intense these last few weeks. I'm trying to become more consistent. But, it might take a while
@@MoneyMacro It's cool! Quality over quantity!
I think the truth is you can’t have financial crisis if economy don’t grow much in the first place. And central bank is needed for high economy growth to happen in the first place.
The Money Masters was the name of another documentary on banking and the federal reserve system banksters
great video, thanks. well presented and clean too!
Glad you liked it!
Hoi Joeri, kleine tip, de rood-oranje border die je in je thumbnails gebruikt maakt de rode watched indicator zeer lastig te zien. Dat kan er toe leiden dat mensen videos overslaan omdat ze denken dat ze die al gezien hebben of juist op een video klikken die ze al eerder gezien hebben in de veronderstelling dat ze dat nog niet gedaan hebben en daardoor denken dat het een repost is of wellicht geirriteerd raken omdat ze tijd verspillen.
They were invented by a certain tribe from the levant.
Dear Author, do you think the flourished banking industry in NL is to some extent linked to the fact that the main European river Rhine leads to the NL itself? Geography pre-destined the monetary (banking) success?
The Rhine leads to Switzerland, past that is the river Ticino, a tributary of the river Po leading to Venice.
from Wikipedia:
'The opening of the Schöllenen Gorge for traffic was an important factor in the original Swiss Confederacy. The three regions of Uri, Schwyz and Unterwalden (the Waldstätten or "forest communities") gained imperial immediacy under the Hohenstaufen emperors still in the first half of the 13th century. An important aspect of the early confederacy, expressed in the Pfaffenbrief of 1370, was the guarantee of peace along the road from Zürich to the Gotthard Pass.'
No Gotthard pass, no Switzerland.
Bedankt , interresant in het licht van BTC en crypto .
God fucking damnit. I apologize world
Deposit money premium was essentially negative interest rates right?
Different in that interest rates are typically compounding and this could be seen as a one off fee
Could you make a video covering the U.S debt as well as the economics of government debt in general?
make a video about greatest merchants of all time
wouldn't that be more of a business type of subject? Perhaps the greatest trading empires?
@@MoneyMacroabout the Wallenbergs?
@@MoneyMacro yes! the greatest trading empires sounds nice!
This video is an excellent example of how banking built the modern world.
Love the video Yoeri, thanks. Just one tiny cosmetical detail: Flevoland shouldn’t exist on your historical maps. Howerver I understand fixing this could open up a can of worms with other insignificant details that could be fixed.
I never knew the ashkenazim nomads was part of Europe.
It is clear to me that the main reason central banks became popular was that it gave the states deploying them more power: increasing "state capacity", as political scientists would call it.
So whether or not it has a net benefit on the economy of the citizens would be unintended side effect. The intended effect is greater control given to the state, now that they have a social institution that can inject money or remove it, at the will of the state.
Therefore the problem with analyzing the effectiveness of central banks is that it is necessarily tied to politics, since the definition of a central bank ties it to the state apparatus.
So we end up with way too many factors, since local politics, international politics, and the banks' own feedback loops can all influence the result, I wouldn't put any weight on vague conclusions such as "the n-centuries/decades before central banks were more/less stable than m-centuries/decades after"
As with the Swedish example, perhaps you could argue that the increased state capacity prolonged the power of the Swedish Empire, which presumably is good for the Swedish economy (if not for their foes). But then that geo-political competition led to retaliation by its neighboring rival states, so should we attribute the eventual fall-out to the central bank too? Perhaps if the Swedish state did not have the power of the central bank, things would have turned out different, even for the better. This is why it feels impossible to evaluate the effectiveness of the central banks. You'd first have to have a good political theory about what is a good state, or even a philosophical theory of consequentialism in general.
Yeah I agree. It's very much tied up with the development of the state. So, CB's have likely evolved to serve the state not just the economy.
Price stability? Do you have any idea how much currencies have been devalued year after year for a century now?
Thanks for presenting these things in a way that even a layman like me can kinda follow the story. Because the jargon used by most financial people too often turned me off ... Dank U vel.
I have recently become convinced that the devil himself keeps his primary residence in the Netherlands, and has a vacation home in Switzerland.
4:08 Every Dutch citizen: *stares off into the distance with cloud timelapse in the background
Great video! I was doing my own research about the origin of CB and your video clearly give me amazing points to work around.
move to argentina
@@hajihajiwa thanks! Considering it.
@@anti-socialism thank fucking god pls hurry
@@hajihajiwa almost there comie
Hi, I watch your Chanel. I have recently written a book on Macroeconomic, Titled Plural Macroeconomics. I have posted a copy to you by snail mail on 3 rd November. It is stuck at Netherlands customs as on 15th.
Some titles of the chapters are really click baits. I list them below:
1 Macroeconomic measurements
2 Macroeconomic money as a dynamic entity.
3 Multiple and Dynamic seigniorage hypothesis
4 State is violence
5 Distribution - deals with distribution between three markets: money, good and services, assets.
6 Societal memory and entropy
Request you to go through it.
I had posted about 200 copies of it to many academics.
You were one of the pick.
Regards
Can you do a video exploring Georgism pros and cons?
The banking system that existed in the US before creating the FED was not a free banking at all. For real free banking systems you should look at Canada or Scothland. In fact, Bagehot in the book that you got his quote from, said that the correct model of banking was the one that Scothland had.
Very good episode. Economic history is fun.
Very thoughtout and engaging video
Thanks!!
every example of a bank you have used, you have said that they practised fractional reserve banking illegally and immorally without telling their depositors. And in secret lending money and bank notes out that it did not have to their rich friends, such as east india company.
printing more bank notes than they had gold and silver in reserves and profiteering from this. and becoming bankrupt from it, losing their depositors money when doing so.
the act of printing more money aka bank notes than already exists in the money supply, is the cause of inflation.
and the act of printing bank notes in secret to buy assets and steal wealth through interest and inflation, was and is a giant conspiracy. As it defrauds and steals from everyone.
For the South European banks and Bank of Amsterdam indeed. The full reserve banks lied.
Riksbank and Bank of England where clear from the start in that they were not 100% reserve banks.
Inflation doesn't really correlate with the creation of these central banks though if I look at the data
@@MoneyMacro Hi! Is it possible to link some of that data? I just read an article from Reinhart and Rogoff named "Shifting Mandates: The Federal Reserve’s First Centennial". They quickly go through the CPI in USA before and after FED and it seems like inflation pretty much explodes after creation of the FED. Now obviously other positive metrics like the GDP have also exploded and the real wages have actually risen (hence the average worker is way better off today than in the 1800s).
@@disser3849 www.riksbank.se/globalassets/media/forskning/monetar-statistik/volym1/8.pdf
That is for Sweden
@@disser3849 UK: www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/1994/inflation-over-300-years.pdf
@@MoneyMacro Thank you so much! Great reads.
Bill Still's movie "The Money Masters" tells it all...
Is EE right in his video about New Zealand's economy being the best?
The bank of England funded the ending of the slave trade aswel as earlier helping prop it up. I would say funding the ending of the slave trade is significant enough to mention.
How did it fund the ending of it?
@@MoneyMacro the banks funds were used to buy out the slave owners, only within the empire though
Thank you
Hard money Vs Fiat money during a crisis. Who wins??
There isn't a hard money. Only the head chance. All others are serfs, don't get credits.
Great channel !! Recently I was watching some old American presidential debate in which ron paul was suggesting ending the federal bank to counter inflation can you please make a video about that idea and what will be it's impacts if we do that in today's world and please bear with my english it's not my first language.
yeah haha it would have an insane impact. Given some of the comments on this vid, I think I should at some point do a response video for these types of ideas.
Well done
“In 1694, the
Bank of England was created, the model on which all central banks in Europe and
later in the USA was replicated. Soon thereafter started, what modern academics
call, “modernity”, which in reality meant reducing people to servitude. English
big time financiers did not like the fact that early US colonies had issued
their own money and showed hostility to the Bank of England. The attempt of
England at abolishing US currency was also the prime cause of the American
Revolution. To a large extent 19th century America prospered precisely because
of the absence of a central bank. One must not forget, as the author states,
that Andrew Jackson’s presidential campaign was carried out under the banner
“VOTE ANDREW JACKSON, NO BANK!” The ominous year for the USA, as well as for
the entire world was the creation of the Federal Reserve Bank in 1913, which
indirectly precipitated the Western world into two world wars and hundreds of
local wars all over the world.”
Excerpt From
A History of Central Banking and the Enslavement of Mankind
Stephen Mitford Goodson
FYI The subtitles for the researcher promo are in the wrong place.
Ahhhh thanks! I updated them.
Best book on Banking and Finance:
(Armour, 2016) Principles of Financial Regulation
The Fed and Inequality:
(Petrou, 2021) Engine of Inequality: The Fed and the Future of Wealth
(Dietsch, 2018) Do Central Banks Serve the People?
Centrak banks arent really national though..
They are almost all privatly owned
Central banks give the money to smaller banks.
NO, not really. That was true in the distant past but is no longer true. Today, some banks have some aspect of private ownership, but that is a rather technical determination. The Federal Reserve technically is, in part, privately owned, but when you look at the particulars, you can see that the private ownership aspect of the FED is nominal at best. The FED requires the member banks to buy shares in the FED, and the number of shares is determined by the size of the member bank. The member banks may not sell their shares, and their shares come with no voting rights. The FED pays only about 6% of its annual profit to the member banks and 94% is paid to the US Treasury, so it's not really privately owned. The European Central Bank is similar, and the banks of these countries have some sort of private ownership: Japan, Italy, Switzerland, Belgium, Greece, Turkey, and South Africa.
@@davidjgill4902
That was my point. Yes the state can or does have a share in it but it is not truly state owned.
@@davidjgill4902 they are very much privately owned you just don’t know about it all controlled by 13 families but ones at the top
Awesome video!
Thanks!