The truth about the UK/US national debt.....

HAMISH_MCTAVISH

Excellent news item.

http://www.youtube.com/watch?v=qD3XMyNmfeY

Debunks all the myths around national debt.

Loughton_Monkey

We are the reserve currency of the world. Therefore we can control the world. We can't run out of money because we can print as much of it as we like.

..... large gin & tonics all round....:)

CLAPTON

HAMISH_MCTAVISH wrote: »

Excellent news item.

http://www.youtube.com/watch?v=qD3XMyNmfeY

Debunks all the myths around national debt.

not really sure I would say that all myths about national debt were debunked.

purch

Is this a video about Fractional Reserve Banking :eek:

dryhat

CLAPTON wrote: »

not really sure I would say that all myths about national debt were debunked.

... but it's probably very enlightening if you know naff-all about economics.

mayonnaise

dryhat wrote: »

... but it's probably very enlightening if you know naff-all about economics.

Says the one who gets his knowledge on finance and economics from the Max Keiser Show.

:rotfl:

downshifter98

Makes sense to this layman; the way I see it is for as long as China hordes their Dollar 'profits' what's the harm in just printing more? This is like monopoly with the person holding all the cash (China), but not all the assets, doing all they can to prevent the game/system ever ending. On this basis only the money supply (and therefore all types of inflation) is really important. US Dollars became the de facto gold standard 40 years ago and printing more Dollars is like mining more gold - comparing it all to family finance (as so many try to do) is ridiculous. To a limited degree I think the UK is the same and thank goodness we never joined the Euro.

Loughton_Monkey

downshifter98 wrote: »

.....US Dollars became the de facto gold standard 40 years ago and printing more Dollars is like mining more gold....

A bit like Bitcoin really.....

CLAPTON

borrowing to fund imports of consumer goods may well be a successful strategy if the taps are never turned off

however if the taps do get turn off one day, there may be regret about who owns much of the worlds resources or indeed about one's inability to produce goods and services that one has got used to

chewmylegoff

purch wrote: »

Is this a video about Fractional Reserve Banking :eek:

No. It's about JP Morgan's $1,000,000,000,000,000 naked short of COMEX silver futures. Worth a look.

downshifter98

Loughton_Monkey wrote: »

A bit like Bitcoin really.....

Well, exactly - once enough people start to believe in something (base metal, God, Jesus....) it will work no matter if it has true intrinsic value or not (although I think I still would prefer a currency with a country behind it). If a made up currency like bitcoin can exist then why shouldn't the US keep printing with relative impunity (hell, China can't get enough of the stuff).