Must see: "The Secret of Oz"

[mancroft]

Why the US economy (and other economies) are fucked. And a solution.

Excellent vid.

http://www.youtube.com/watch?v=D22TlYA8F2E

Must see

[C.J.Woolf]

Can you give a plot synopsis of this nearly-two-hour video for those of us for whom life is too short?

[mancroft]

Can you give a plot synopsis of this nearly-two-hour video for those of us for whom life is too short?

1. Problem: Money is issued with interest. (Fractional reserve). Interest is the killer in the system.
2. One suggested solution: Issue money without interest. This can be done by the government.
3. Various historical examples relating mainly to the US. How banks deliberately create depressions, Lincoln greenbacks, the 3 Federal Reserve banks of the US etc.
4. How the Wizard of Oz story is an allegory of the monetary system (relating especially to the US in the late 1800s.)

[SensEye]

Sounds like old news. The old "money is created as debt, never enough money to pay pack the interest, get thee back to the gold standard (or whatever - sometimes it's going back to a barter system)" chestnut has been around for ages.

[mancroft]

Sounds like old news. The old "money is created as debt, never enough money to pay pack the interest, get thee back to the gold standard (or whatever - sometimes it's going back to a barter system)" chestnut has been around for ages.

:facepalm:

[Harion]

no. money is the problem.
if banks can create wealth out of nothing.
government can do the same.
there's no stopping government from establishing a close system of a moneyless country.
deal with the rest of the world normally, run your country without a currency.

[MoneyJungle]

I'm still having nightmares from Return To Oz.

[fripping]

I'm still having nightmares from Return To Oz.

as a child i feared death at the hands of tik-tok

[MoneyJungle]

Here is the part that fucked me up as a human being beyond repair

[Madrigal]

Here is the part that fucked me up as a human being beyond repair

I had completely erased that movie from my memory (even the title) until I saw this scene again. Thanks.

[composer]

I understand that you can't earn interest in Muslim countries on your capital, so people put it all in gold. Total capital in the world is about 60T, total gold around 6t, so gold would have to be about $20k/oz to be the world currency. Ain't gonna happen.

Didn't watch the movie, but what they're probably missing is that frac reserve works as long as wage and CPI inflation keeps pace. 'All' that happened is a Minsky moment, when debt growth exceeds wage/inflation growth.