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What is money? Where does it come from?

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May 26, 2010 – Comments (18)

This is a subject that I have written about many times. It is a critical topic becuase people really don't understand it.

Some of my writings include:
--- The Gold Blog. Gold/Silver/GSMs (and a little Oil for good measure) - LINK
--- Thoughts on the US Dollar, Analysis of the USDX Long Term, Follow up on the Gold Blog - LINK

Another excellent source is Chris Martenson. Watch his phenomenal presenation and educational set, The Crash Course. He discusses money early on in the presentation.

Well, here is another to add to the list. At the Swarm there is a really good one regarding Canada's financial system (which for all practical purposes is just like the US system. The Federal Reserve is a private bank).

What follows is a very entertaining, creative, and educational movie about the money system in Canada. Yes, it’s almost all applicable to the USA and to the entire debt-backed money world. There are some editorials you may not agree with, but I think it’s worth your time overall. This is a good one to share with those who may not be familiar with the way money works – in other words nearly everyone! (ht Damon - if these videos are too large for your screen, simply double click the video to view in Youtube)

Total running length is 1 hour and 36 minutes.


Here are the first two parts. Click on the link above or this link for the rest.

Part 1:



Part 2:

18 Comments – Post Your Own

#1) On May 26, 2010 at 4:02 PM, binve (< 20) wrote:

Oh, I almost forgot. Here are two other blog posts that talk about the real problem in our monetary system:

maturity transformation

What this means is to borrow short in order to lend long. It is the basis behind behind our entire financial system. And financial failures are not simply a random and rare by-product, but is actually a "feature" of this system.

I have linked to these two articles before, but I have never featured a post around them. But they are extremely relevant:

Maturity transformation considered harmful: an unauthorized biography of the bank crisis -
http://unqualified-reservations.blogspot.com/2008/09/maturity-transformation-considered.html


The Misesian explanation of the bank crisis - http://unqualified-reservations.blogspot.com/2008/10/misesian-explanation-of-bank-crisis.html

These post were written by Mencius Moldbug of http://unqualified-reservations.blogspot.com. His blog is extremely interesting (although it is a bit out there sometimes / fairly often). He is a Computer Scientist who likes to look at issues from an almost diagnostic point of view. I first started reading him in September 2008 (when he wrote these posts) with his discussion of Fractional Reserve Banking and Mises Banking.

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#2) On May 26, 2010 at 4:10 PM, 1315623493 wrote:

Money is a medium of exchange which does not necessitate that medium have intrinsic value, in and of itself. In reality, gold is no better money than fiat currency, since looking back to the gold standard, it was rife with panics and high volatility. All it does it tie the government's hands financially. 

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#3) On May 26, 2010 at 4:27 PM, kdakota630 (29.71) wrote:

binve

That link for Oh Canada -- The Movie that you provided is being flagged by my virus software.

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#4) On May 26, 2010 at 4:29 PM, JGus (28.84) wrote:

Hey binve!

I know you already are aware of this, but for other readers of your blog I thought it would be worth mentioning that a couple of Chris Martenson's crash course chapters also do an outstanding job explaining these issues.

PS - The action throughout the day seems to fit well within your current count - looking for your 950-1000 range as the end of this move down.

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#5) On May 26, 2010 at 4:29 PM, kdakota630 (29.71) wrote:

I googled it and got a slightly different address but the same result.

However, I did find this which I think is a number of clips which make up the bulk of the movie, if not the entire movie itself.

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#6) On May 26, 2010 at 4:30 PM, binve (< 20) wrote:

kdakota630 ,

You're right!!. The second link is safe: this link

I will ask MF to take down the first link..

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#7) On May 26, 2010 at 4:35 PM, binve (< 20) wrote:

JGus ,

Thanks man!! I agree. Chris's explanation is a fantastic one. It is very good for understanding the issue.

This new one is good for understanding the issue as well as provoking a reaction.

>>PS - The action throughout the day seems to fit well within your current count - looking for your 950-1000 range as the end of this move down.

Thanks! So far so good! :)..

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#8) On May 26, 2010 at 4:53 PM, binve (< 20) wrote:

Here are the videos again:

Part 1:

and  Part 2:

Follow this link for the rest of the parts. 

 

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#9) On May 26, 2010 at 4:59 PM, Bludgeoner (21.86) wrote:

BetapegLLC

Excellent work co-opting someone else's ideas!

Congratulations!

 

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#10) On May 26, 2010 at 7:17 PM, kdakota630 (29.71) wrote:

I finally finished watching the entire compilation.  Thanks!  It was quite informative. 

I found it a little disturbing that the two leaders who seemed to understand our banking system the best were the NDP (socialist party) and the Green Party (environmentalist nuts).

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#11) On May 26, 2010 at 8:07 PM, 1315623493 wrote:

 Bludgeoner,

Your point?

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#12) On May 26, 2010 at 8:43 PM, binve (< 20) wrote:

kdakota630,

Thanks kdakota!

>>I found it a little disturbing that the two leaders who seemed to understand our banking system the best were the NDP (socialist party) and the Green Party (environmentalist nuts).

I suspect you would find the same thing among Democrats and Republicans in the US Congress if they were polled. Paul and Grayson being a very small minority for both parties.

Thanks!.

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#13) On May 26, 2010 at 11:59 PM, Tastylunch (29.36) wrote:

>>What is money?

Leaves

>>Where does it come from?

Trees

>>How do they work?

ask Insane Clown Posse.

errr actually don't do that. :)

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#14) On May 27, 2010 at 12:25 AM, binve (< 20) wrote:

Tastylunch,

LOL! That was awesome! :)

>>ask Insane Clown Posse.

Will do! "Say Messers Posse, how does ..... AAAAHHHHHHHHRRRR!!!"  :).

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#15) On May 27, 2010 at 6:53 AM, mhy729 (30.49) wrote:

There should be a huge poll conducted to see how many people understand this subject.  Thanks for the links and vids.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."  -- Henry Ford

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#16) On May 27, 2010 at 8:40 AM, binve (< 20) wrote:

mhy729,

No problem, my pleasure! That is a great Henry Ford quote, thanks!..

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#17) On June 02, 2010 at 8:31 AM, Sage48 (< 20) wrote:

Confidence in the value of metal coins was such that some people were even able to give up farming, boatbuilding, mining and pottery to become full time travellers and traders.

__________
:::SEMO:::

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#18) On June 02, 2010 at 2:14 PM, silverminer (30.48) wrote:

BetapegLLC

In reality, gold is no better money than fiat currency, since looking back to the gold standard, it was rife with panics and high volatility.

Do you care to cite specific evidence?

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