The Broad is Back!

September 30, 2008

For those, like me, who are confused about money

Filed under: American culture,economy,Kucinich,New Broads,Uncategorized — by maggiec @ 5:54 pm

Okay, so anyone who knows me knows that I’m no financial genius.  I do know that no money is bad.  Enough money is good.  Excess money is wonderful, though rarely ever happens to me. Please see the first sentence.  When someone comes to me and needs to borrow money, if I have it, I give it, usually with the understanding that I’ll never see it again.  That’s kinda stupid, right?  Giving money away?  When I do it, it’s stupid, and I’m incredibly naive.  When the banks do it, it’s sound financial policy.

Now you see why I don’t understand economic policy.  Banks make no sense to me.

Luckily for me, my friend Dennis Kucinich sent me a link to a video that will help.  I thought I’d share it for those of you who are as lost as I am.

Watch the 47 minute ‘Money as Debt’ animated documentary you can find here. This is a useful, though by no means definitive, introduction to the topic of debt and the monetary system.

In the e-mail that came with this link, Congressman Kucinich also said this:

Here is a very quick explanation of the $700 billion bailout within the context of the mechanics of our monetary and banking system:

The taxpayers loan money to the banks. But the taxpayers do not have the money. So we have to borrow it from the banks to give it back to the banks. But the banks do not have the money to loan to the government. So they create it into existence (through a mechanism called fractional reserve) and then loan it to us, at interest, so we can then give it back to them.

Confused?

This is the system. This is the standard mechanism used to expand the money supply on a daily basis not a special one designed only for the “$700 billion” transaction. People will explain this to you in many different ways, but this is what it comes down to.

The banks needed Congress’ approval. Of course in this topsy turvy world, it is the banks which set the terms of the money they are borrowing from the taxpayers. And what do we get for this transaction? Long term debt enslavement of our country. We get to pay back to the banks trillions of dollars ($700 billion with compounded interest) and the banks give us their bad debt which they cull from everywhere in the world.

After reading this, I no longer feel like a financial idiot.  No sane person could make sense of this system.  Actually, isn’t this something like the money laundering I see on movies about crime?  And isn’t that a bad thing?  Silly me.  I lost my head.

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