Monday, March 16, 2009

What they didn't teach us in economics class...

Unless you have been living under a rock you would know that the world is experiencing the GFC (Global Financial Crisis). In the US thousands everyday are losing their jobs and then their family homes. In Australia, we too are feeling the strain, but certainly not to the same extent as our American friends. In my industry, many firms are working 4 day weeks, taking pay cuts or are being retrenched. You see what’s happening on the world stage, you are feeling its effects, but do you understand why it’s happening? Unless you’re a banker yourself, I bet you have no idea.

The following are some of the concepts many of us believe is true about the monetary system.

  • Money is a paper representation of a store of real assets of value like gold or silver, held in the Mint.
  • We deposit money in banks and they lend it out, dollar for dollar.
  • We think they are getting rich mainly from exorbitant fees and interest rates.
  • Money makes the world go round.
  • Paper money is actually worth something
  • The premises that our monetary system are basically sound in theory, the CFC is the result of certain individuals being irresponsible or greedy.
  • It’s morally acceptable for banks to charge interest.
  • This is the only monetary system we can have and it’s always been this way.
  • I can be a Christian and still work for a bank.
  • The world economy can recover from this GFC, give it a year or so.

If you believe any of the above now, I guarantee you, you will think differently after seeing the following videos.

Money As Debt

This video explores the whole concept of money and how the banks make it out of thin air and treat the people as dupes to be scammed and why they hope we never wise up to the scam. It’s full of graphics and animation and is easy to watch.

Crisis of Credit

This video explains why the world economy is collapsing, emanating from the US sub-prime mortgage sector. You will understand why what’s happening presently is not recoverable and is irreversible. We have built our civilizations upon lies and deception and it’s finally crashing down around our ears.

It’s important to see BOTH videos to get a complete picture.What can you do about the current financial crisis?...a lot! Just by informing yourself and crawling out from the comfort of naivety you will cease "playing the drongo". That's got to be a step in the right direction.