19 votes

The Truth About Central Banking and Business Cycles in 6 mins

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I finally got around to watching this.

And I'm glad I did, this is excellent and discusses the very problem we find ourselves in.

Just like Jim Rickards says, we have a structural problem, not a liquidity problem.

This video does not

This video does not fundamentally understand how banking works.

Banks can create money out of thin air. They don't need central banking reserves to do so. They don't need your savings to do so. Banks will create as much credit as they can find credit-worthy customers. Your savings/central bank reserves exist to give the banks liquidity and the ability to meet calls.

In fact, the central bank ALWAYS is keeping rates above the natural rate. By issuing any government debt, they are reducing the number of reserves, therefore decreasing liquidity and causing short-term interest rates to go up.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a


It's like you NEED to show this to anyone before talking about the government.

Wow this is a great video.

Wow this is a great video. I'm sending this to my friends.

No central banks and Jubilee is the just way to deal with cycles

"Bear in mind that credit always tightens at some point in every market system. The only question is timing and knowledge. Will this tightening occur at a time known to all, or will it be the decision of a few sprung on the nation at a time when people least expect it?"

Localism, A Philosophy of Government http://www.amazon.com/Localism-A-Philosophy-Government-ebook...

Localism is for people who can still sleep at night even though somebody they don't know in a city they have never been is doing things differently. ("Localism, A Philosophy of Government" on Amazon for Kindle or Barnes and Noble ebook websites)

Thanks for this!

Ive covered this in similar fashion here:
Re dark side of artificially low rates http://smaulgld.com/the-dark-side-of-artificially-low-intere...
Re false signals http://smaulgld.com/increase-in-new-home-starts-and-new-home...

Please subscribe to smaulgld.com


... Love these kinds of videos.

Keep spreading the message to those who may not have been informed yet!


Keep your eye on the prize! - Ending legal tender laws in order for the Federal Reserve System to self-destruct is of the upmost importance.
What in the World are They Spraying https://www.youtube.com/watch?v=jf0khstYDLA

DJP333's picture


for the bump, I thought it was a very simple, effective presentation.

"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

Gilligan's picture

Very nicely done. Perfect to explain our position

to people who don't get excited about economics.

DJP333's picture

I think most DPers

are well aware of the information in this video, but its a good tool for educating others.

"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."