Comments by "Edward McLaughlin" (@edwardmclaughlin7935) on "How banks create money" video.

  1. "Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, Governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become "profiteers," who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery. Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of Society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose." Taken from John Maynard Keynes' "The Economic Consequences of the Peace" (1919)
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  2. That's exactly how banks create currency, not money. Gold is money, and to insist there are no distinctive qualities that separate the two, is to play the fiat game that is robbing people blind. One of the fundamental qualities of a viable system of trading is that it is rested on a means of exchange which provides in addition, facility as a store of wealth. Fiat currency can be a reliable store of wealth in certain conditions - we happen to be living during a stage of our fiat currency in which it has lost its ability to store wealth. It is being steadily debauched such that every pound in our wages/savings/pensions can no longer buy what it could last year; in another year's time it will buy even less. The stealthiest tax of all. Put another way, the ordinary person is being relieved of his wealth by immaculately-suited pirates while he/she stands dutifully to attention, pipes them on board and hands them the key to the ship's safe. If gold has no inherent value, why are the treasury departments of so many countries buying it by the ton? Well, because it is indeed security that a debt will be paid; and the countries buying gold look at a global reserve currency system that severed all ties to such security on August 15th 1971 and, since being unleashed, has gone through its debauchery phases, as the man said, 'slowly at first...' and now we are approaching its '...and then all at once' phase.
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