Comment: This video does not

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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