Fascinating (though painfully produced) video about how our economy relies on the exponential & perpetual creation of debt, and how it’s literally unsustainable in a world of finite resources.
The gold-basis system used in the past is easy to grok: the value of paper money is directly affixed to a physical amount of gold. But I’ve never fully grasped the concept of how, in modern times, banks create money by selling debt. This video shows not only how that system works, but also how it requires the exponential growth of world-wide debt which can never be repaid.
Robert Hemphill (Credit Manager of the US Federal Reseve Bank) said:
“We are, absolutely, without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is .. our present civilization may collapse unless it becomes widely understood and the defect remedied very soon.”
The collapse of the Roman empire was a gradual death-spiral that took over 300 years to complete. I’m no doomsday soothsayer, but you can’t help but wonder if perhaps we’re in over our heads.
Ignore the animated clipart and watch this.
Source: video.google.com
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