Top Three Videos – November 25, 2023

Impact of Money Creation on Society

• “Once you’ve got a price wrong, it has a ripple effect – the young suffer because firstly they’re taxed heavily and then secondly the money they’re paid in loses its value.”
• “We’re now entering a world where Millennials and generation Zed are likely to be the first generation since before the Industrial Revolution to be poorer than their parents.”
• “The methods of money production in society today are profoundly corrupting in ways which would matter to everyone if they were clearly understood.”
• “When a bank makes a loan, it creates that money out of thin air.” – William White, former head of the monetary department at the Bank for International Settlements.
• The process of money creation has shifted to central banks, with almost all the money created since 2008 being printed by the Bank of England, leading to a loss of control over the creation and amount of money in the economy.
• The global money supply has doubled every decade since 1960, leading to economic distortions, inequality, inflation, and the largest asset bubble in human history.
• “Since 1971, our currencies have been unbacked, known as Fiat money, meaning it is what we say it is, nothing else is behind our paper currency.”
• “When you go back through thousands of years of History we have never ever seen anything like this, it will be sensible to ask how has all this artificial interest rate fixing and money printing improved our economic predicament.”
• “Von Hayek predicted the 1929 stock market collapse by analyzing the excessive money creation in the 1920s, highlighting the dangers of monopolistic money creation and centralized fixing of interest rates.”
• Inflation is a sneaky tax that devalues the government’s debt at the expense of savers, allowing politicians to transfer money from private savers to the state without being blamed.

   

Consequences of Debt Bubbles and Financial Crisis

• Global public debt currently stands at 60 trillion dollars, while total global debt is a staggering 280 trillion dollars, highlighting the magnitude of the financial situation we are in.
• The continuous increase in debt bubbles created by central bank monetary policy has led to the creation of the largest bubble in history, approaching a $300 trillion global aggregate debt bubble.
• The global financial crisis of 2008 was fueled by the growth of the biggest real estate bubble in history, financed by debt and artificially low interest rates.
• The bursting of the debt bubble is inevitable and the consequences for the population will be profound.

   

Potential Solutions and Alternatives to Current Monetary System

• “A reform in the monetary system should include a return to honest money, preferably a currency backed by something real like gold, to prevent debasement and unlimited printing of new money by central banks.”
• Cryptocurrencies have the potential to become a form of honest money and provide individuals with freedom of choice in currency, as long as governments don’t interfere with entrepreneurs providing high-quality money through free markets.
• “If we want to move to a more just system…then we need to move away from the system where the main people who benefit are those with access to artificially cheap money created out of thin air by Banks and central banks.”