How banks create money

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Title	:	How banks create money
Lasting	:	4.08
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Bitcoin is not debt, nor a promise to pay If I send you bitcoin you have the bitcoin and neither me or you or a bank can create more
Comment from : @njohnnyutah5812

You’d be amazed at the number of Business People that don’t understand this!! I’ve a friend, he has runs a multimillion pound business, he can’t grasp this!!brThe world runs on credit, not money
Comment from : @TheDickPuller

If the Bank allows overdrafts It Is limited by the amount of deposits Minus operating reserve This happens when a mortgage or personal loan Is issued
Comment from : @Alberto-k6t

Could someone explain why the government that is generally assumed to be the creator and controller of 'money' has to borrow money from 'the banks' with interest I really need to be convinced this is not just a scam, in language the public can easily understand
Comment from : @andielines

The Gold thing I have an issue with here, for some reason
Comment from : @ef7480

Food for thought
Comment from : @NavM23

Expand your statement! Corporations and individuals taking out large loans often irresponsibly bring money into existence Please consider this proposition GDP is 99 correlated with flammable fossils Materials 100 correlated US economy at this time is growing at 35 It's no coincidence that the oil majors announced they've EXTRACTED fossil fuels at the highest volume in history Unlike money which comes into existence at time of loan flammable fossils are one and done gifts of sun earth system created over tens of millions of years There is no Fossil Fuels Fairy refilling the holes Time to disengage economy from non renewable energy
Comment from : @BobQuigley

Am i missing something? The debt taken out on a credit card or other loan with a bank might disappear as the debtor pays down his debt but the bank gave the money to the vendor to pay for whatever so the money doesn't disappear its just been transferred to the vendor
Comment from : @simonlister325

This was why top bankers' eye watering pay packets should have been even more controversial than they ever were or arebrbrBank 'profits' aren't fully crystallized until a loan's been paid off, but they're effectively paid bonuses on loans that have not been crystallized or in some cases might never be as in 2008
Comment from : @gerhard7323

This is why the UK housing market and its associated mortgage market is SO crucial to propping up the UK economy and why ever rising housing prices are deliberately encouraged despite frequent claims to the contrarybrbrI'm of the cynical opinion that government actually restricts housing supply in order to promote scarcity and drive the market and prices ever upwards
Comment from : @gerhard7323

Sir, it is paradoxical, those who know the secret still have to toil away Those who can implement the secret are sworn to secrecy, not to divulge details, "according to Convention"
Comment from : @durudadlani1931

This is nonsense When you buy something on a credit card the supermarket turns one asset (stock) into another asset (receivables) and the credit card company records a matching liability No new money is created
Comment from : @michaeltaylor3473

Your signature creates the currency We are the true kings and queens
Comment from : @cheds1

You're a wellspring of hope! 🌟 - "Self-belief and conquering self-doubt open the door to success"
Comment from : @Money-Fast-Plan

This crank goes from preaching Marxism to teaching GCSE economics
Comment from : @Dc-uf1ln

Gold has no inherit worth as money? You have just described it's inherit worth! Food has no inherit worth if we don't need to eat We need to use money so gold has inherit worth, as it has for thoudands of years
Comment from : @krisfraser6181

But Richard, alleged borrowers are asked to pay more than the amount of money their promissory note creates, hence fraud of usury is unlawful Also, as you say, such money disappears when the principal amount is repaid but it has disastrous effects on the economy given the majority of money now created by banks is to inflate non productive asset bubbles that has created such income inequality we witness today that is all deliberate by design Give man a gun he can rob a bank, give man a bank he can rob the planet
Comment from : @Mikeybhoy1979

Respectfully, how does a man get paid for his labour? Are you telling me he gets paid with a promise to pay?
Comment from : @liamweavers9291

The trouble is that whoever wields/holds political power has no restrictions to overspend Thus, you end up being laddèn with deficits upon deficits year in and year out
Comment from : @gilsonsangulukaniphiri5018

Can you explain the part about the "destruction" of created money once a loan is repaid again?
Comment from : @shyguy778

And everytime somekunt takes out a loaneg a mortgage, the money supply is increased and magically so are home prices
Comment from : @jasbindersingh2441

hence the political desire to deliberately push our mortgage debt levels through the roof
Comment from : @davegubbins4428

Very true Mostly, "money" seems to get stuck in the saving accounts of rich private benefiting members of the society One reason why more and more deficit has to be created to let everything flowbrbrI guess the ever increasing total liquid amount of money is also dependent on how many users there are, the turnover rate and the total growth of economybrCan thus be right? 🤔
Comment from : @ProgressiveEconomicsSupporter

Well, money is debt on one site of the balance but most importantly it's also credit on the other site Only as debt/credit it's really useful to "move" and transact things, until its finally paid back or removed otherwise from the great stream of goods and money, eg by taxes 😊
Comment from : @ProgressiveEconomicsSupporter

The UK government underwrites all currency creation
Comment from : @maria8809ttt

I don't have a credit card, not had one for 20 years
Comment from : @capitanvonchickenpants8492

Your Right wing detractors don't want to hear this when they're blathering about too much debt
Comment from : @OnlineEnglish-wl5rp

I’ve watched a few of this gentleman’s lectures He eludes to the Fractional Reserve System but never seems to explain it properly brIn my view the Fractional system is the Achilles heal of all economies
Comment from : @perkinscrane

It doesn't dissappear when u pay backbrThe landlord immediately can start spending his newly increased wealth, while the government makes sure the borrower gets raises & pays back in devalued money so the bank doesn't go bust
Comment from : @shantassadourian8480

Agreed with you up to the point you describe money Gold is money (store of wealth) but what you consider money is currency which generally devalues over time because of inflation (expansion of the currency supply) The two are not the same
Comment from : @stumac869

Is crypto currency debt? Is it even a currency?
Comment from : @davidhogg8952

A lot of journalists and even politicians still claim that the govt is 'printing money' and that is a bad thing , as though we were still on the gold standard
Comment from : @ianstevenson3628

2:54 [Gold is just a symbol of a debt] This doesn't seem true to me Gold is nobody's liability, and it can be used to make things
Comment from : @metallitech