Where Does Money Come From? 

The Rest Of Us it's amazing

It's a world record no dislike me 2 mins in

Dear The Rest Of Us, Don't you feel like doing a couple of videos about the topics which you classified as "a story for an other time."? For example in your Automated Economy video.

yeah you are always best

You wrote tillions on a subtitle

Nobody knows anything you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.

@@sherryie2 I agree, that's the more reason I prefer my day to day invt decisions being guided by a fin-advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a fin-advisor for over 2years+ and I've netted over 2.8million.

@@corrySledd I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?

@@McElvinn My Financial Advisor is NICOLE DESIREE SIMON. I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can run a quick online research with her name if you care for supervision. I basically follow her market moves and haven’t regretted doing so.

@@corrySledd She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.

Kai Widman money supply and commodity prices put simply

Power pf d 4 not ... Also Wepkns Facok u!

Yea, these mistakes are unfortunately inevitable until I can put some crowd-pre-checks in place. If I ever have enough Patreon supporters, I will give them a preview for feedback 24 hours before I publish on RU-vid.

Great video though! :D Now I'm gonna go build a house.

how much did too big to fail cost ?

mike rice i'd be curious to know that as well

(A) 9 trillion 2008 . (B) 16 trillion (C) QE for years that a 85 to 100 billion each mo (D) rates at 0 for years (E) Over 700 trillion in derivatives (F) bush ask for a 150 billion jan 2008 (G) Mar 2008 Bear Stearns stock was going down when they rated that office they found billion and billion in sub prime loans and mortgage backed security and something worse Credit Default swaps. Bear Stearns Made credit Default swaps up and down wall street and all over the world Fed central bank TOO big to fail US Financial system was interlinked in dangerous ways as the chart shows fed pass 30 billion to Jp morgan Chase to help purchase bear Stearns indy mac failed jul 2008 and gas took off . US Government seized Fannie Mae And Freddie mac sep 2008 TOO big too fail and i need 700 billion right now . 2009 i need 800 billion right now . stock market crash 2008 they let Lehman Brothers fail sep 2008 the next day AIG TOO big too fail pass 185 billlion to them

+Vladimir Yuriev Not my quote. It's not publicly owned. Just public, as in it's official goal isn't profit but stability and wealth for the people. Make of that what you will.

The Rest Of Us I believe the Fed pays out 6% dividends to its public shareholders.

@@JamBos11 dividends are not guaranteed though

@Bhavesh sinha the fed gives back all the leftover profit to the treasury. Don't make it sound like a conspiracy. It's available in their website.

A public body accountable to the people and elected should issue money.

+TNT MADNESS I'm afraid if you already died it's too late for that

We can make a religion out of this

The way he said it killed me lol

I paused and immediately scrolled down to see if anyone else was laughing X'D

I loved that part too hahah

Just went through if anybody else has noticed! :D ok, won't write the comment, i'll just support yours!

+salwinwwy Thanks! Yea, maybe I should animate my true fans to share my content a bit more actively.

...yes?

+Remy Rojas Not waffle, but lots and lots of coffee!

The video is wrong, he forgot about interest , remember the loan needs to be paid back with an extra amount added to it (interest) how can this extra value be paid back if it hasn't been created yet? and that's the scam of banks. at a micro economic level it seems we can pay off our debts. But at a MACRO economic level the debt never gets paid, it just grows and grows, (like we can see in the national debt) because of interest, not to mention compounding interest which should have been made illegal a long time ago. Please dont spread misinformation there is no need for a debt based economy, a REAL economy IS possible, just look at nature there is no animal bank were animals ask for loans in order to expand their families or beehives, they expand as the resources become available, just like in strategy games, you can only build structures (pylons lol) when you have enough resources thus never incurring in any debts.

Unfortunately such short videos don't allow me to go more into detail without losing too much of the audience. If you want to understand it better - and it's quite interesting indeed! - I recommend you just google it and you'll find tons of more detailed material!

it's literally just legal magic, the figures don't add up to zero because the law allows it. it's just a centrally controlled but distributed throttling algorithm that tries to quantise the actual production and value in the economy so that the amount of stuff to buy and the amount of money to buy it with follow slow gradual divergence (usually inflation) controlled to encourage people to keep buying and take on more debt in order to make more money to buy more things, etc, maximising the transaction throughput but without overdoing it so much that people actually notice that all of this is basically just a kind inter generational pyramid scheme, a state sanctioned belief that the future holds prosperity and economic growth is the one true way to achieve it, and that enough people will make good on their debt to absorb the misbehaviour of those who don't.

Krombopulos Michael Banks also make money by interest I guess :/

Krombopulos Michael In a perfect hypothetical situation: I put $1000 into Bank A for a savings account. Bank A then loans out that $1000 to Steve so he can buy a house. Steve is now $1000 in debt to Bank A. This is a liability for Steve and an asset for Bank A. With this $1000 asset, Bank A can now loan out $1000 to Nancy so she can buy a car. In this situation, unlimited money can be created. In the real world, there is a reserve ratio (as mentioned by the video) so the ban could only lend out, say, 90% of the money they are lent each time. Also in the real world, a person can take out a loan with a different bank than another saves with. And in the real world, people can't be trusted to pay back their loans 100% of the time. These reasons are why there isn't a money multiplier (how much money is multiplied after the initial creation) of infinity in the real world. For instance, in the video, the multiplier was 9 ($100 was initially created and it was multiplied by 9 after the reserve ratio was accounted for).

A check....when you get a loan for an item, you are getting a check asset for the item itself (like a car or house). You then give that check to the seller of the item (dealership or real-estate agency)....which then gets deposited in their bank account. There is no physical money being moved, but there is a negative placed in your name and a positive placed in the seller's name, and the asset is placed on the books as coverage for the negative position. If you don't pay, the bank takes your asset in default....they then sell the asset the best they can and go through the courts to get the money from you through wage garnishment. This money then cancels out the negative on the account. Banks do not create money, they create debt and place the population under responsibility for it. As for the seller's account, they have the option to take all of that money out if they want to, but like this video states, the chances of them doing that are slim. If they do, the bank doesn't have to worry about it because they'll just borrow that money from their reserves, which is other people's money....eventually the seller is going to do SOMETHING with that cash, and at some point it will land back into the bank from SOMEWHERE.....that's the point. If there is a "run on the bank," the Fed will just issue a block of money which is borrowed from other banks. The banks are gambling that not everyone in the USA, at the exact same time, will empty out their accounts.

MountainHawkPYL, Yes sir! when shall we meet?

Meet me out back behind the barn tomorrow night.....and don't forget the peanut butter! :)

😂😂😂

+SildaekarD I simplified obviously. But what you say can go both ways. The house (more specially the land) could also appreciate in value and the debt could shrink upon inflation. The bank obviously has an interest in your house rising in value (because they are as invested in it as you are), so your interests are aligned. Unfortunately that doesn't always happen. Housing bubbles are system-made, even though nobody wants them (maybe with the exception of smart property developers). If I had accounted for these factors in my video the outcome would have been just the same, only with more complication.

The Rest Of Us I didn't think about it like that. Thank you for taking the time to explain that makes a little more sense now. At least as far as the housing industry goes.

Totally agree. The video is wrong, he forgot about interest , remember the loan needs to be paid back with an extra amount added to it (interest) how can this extra value be paid back if it hasn't been created yet? and that's the scam of banks. at a micro economic level it seems we can pay off our debts. But at a MACRO economic level the debt never gets paid, it just grows and grows, (like we can see in the national debt) because of interest, not to mention compounding interest which should have been made illegal a long time ago. Please dont spread misinformation there is no need for debt based economy, a REAL economy IS possible, just look at nature there is no animal bank were animals ask for loans in order to expand their families or beehives, they expand as the resources become available, just like in strategy games, you can only build structures (pilons) when you have enough resources thus never incurring in any debts.

If I have 10 dollars will my ten dollars be worth the same value 5 years from now? Of course not, the bank would be losing money if you borrowed 100,000 dollars and at the end of ten years payed back 100,000 dollars

miniyodadude not really, since the loan that is lent was created by the bank through Fractional Reserve. The 100,000 that the bank lent you, they didn't have them, so if you pay the 100,000 back with no interest, they would have still made a profit. 100,000- yoy inflation x 10. More on banks here: mises.org/library/how-banks-go-bust

Doesn’t matter how money emerges, its intrinsic value always lies in its ability to represent the value and trade of underlying assets. Rice money was grown, gold coins were minted, fiat money created by banks etc. At the end of the day its just a score keeping system. And crypto is no different. The one difference for crypto is that it’s traded like a speculative asset, while aspiring to be money. We’ll see how that works out in the long run. Personally, I think crypto is here to stay, but I wouldn’t want to put my money on any particular coin over a 10 year period. Or any coin for that matter, since none of them are value producing assets.

@@The-Rest-of-Us I dont understand. You can eat rice and make jewlery out of gold, so that intrinsic value is easy to argue. But if I understand crypto mining correct, a crypto coin is just the correct answer to a mathematical riddle -> that value seems to emerge out of thin air. There is no asset put in, as with fractional reserve banking. Just electicity consumed in the effort to discover a digital pattern that has no application outside the pretence of representing value. Isnt this very different from how money is created through fractional reserve banking?

@@MattiasAllring Yes the way crypto is created is very different. But I think money can have many different origins, hence my rice and gold examples. My main issue with crypto is that most of its trading volume is for speculation, not transactions. That’s what I meant with traded like a speculative asset.