97% Owned: The Money System | Finance Documentary Film (Netflix)
Independent POV・2 minutes read
Money creation and its origins are shrouded in secrecy, impacting national and international levels significantly, necessitating preparation for economic crises beyond government intervention efforts. Goldman Sachs is highlighted for its global dominance, with a majority of money in circulation created by private banks through loans rather than the government.
Insights
- The majority of money in circulation is digital, created by private banks through loans, not by the government.
- Seigniorage, the profit from issuing currency, is a significant revenue source for the government.
- The collapse of the Bretton Woods system in 1971 led to the modern era of fiat money.
Get key ideas from YouTube videos. It’s free
Recent questions
What is the significance of the establishment of the Bank of England in the 1700s?
The establishment of the Bank of England in the 1700s marked the beginning of cyclical economic issues. The bank played a crucial role in shaping the monetary system and influencing economic trends. It centralized the power to issue bank notes, shifting the control from private banks to a centralized institution. This move had far-reaching implications on the economy, setting the stage for the complexities of money creation and circulation that we see today.
How does the majority of money in circulation come into existence?
The majority of money in circulation is digital, created by private banks through loans, not by the government. Commercial bank money constitutes a significant portion of the total money supply, with only a small percentage existing in physical cash. When individuals or businesses take out loans from banks, new money is effectively created through this process. This highlights the role of private banks in generating the bulk of the money supply, showcasing the intricate dynamics of money creation in the modern financial system.
What led to the surge in banking sector assets from 1980 to 2006?
The banking sector assets surged from $2.5 trillion in 1980 to $40 trillion by 2006, indicating a significant growth in the industry. This expansion can be attributed to various factors such as increased lending activities, financial innovations, and globalization. Banks capitalized on opportunities for growth, expanding their operations and investments on a global scale. The rise in banking sector assets reflects the evolving landscape of the financial industry and its impact on the broader economy.
How did the collapse of the Bretton Woods system in 1971 affect the monetary landscape?
The collapse of the Bretton Woods system in 1971 marked a pivotal moment in the history of monetary systems. This event led to the transition to the modern era of fiat money, where currencies were no longer pegged to gold or the dollar. The shift towards fiat money allowed for more flexibility in monetary policies and exchange rates, shaping the global financial landscape. The aftermath of the Bretton Woods collapse had profound implications on international trade, currency valuations, and economic stability.
Why is monetary reform crucial in preventing financial crises?
Monetary reform is essential in preventing financial crises caused by the unchecked power of private banks in money creation. The current system allows banks to extract wealth without contributing productively, leading to excessive debt and financial instability. By democratizing the money supply and establishing transparent and accountable mechanisms for money creation, the risks of financial crises can be mitigated. Reforming the monetary system is crucial to ensure that banks operate in the public interest, promoting economic stability and equitable wealth distribution.
Related videos
Moconomy
The System of Money | Documentary | Money Creation Explained
ColdFusion
How is Money Created? – Everything You Need to Know
Moconomy
97% Owned | Creation of Money | Finance Documentary | Debts Explained
CNBC
Why Goldman Sachs Went From Investing For The Rich To Targeting Everyone
ColdFusion
Who Controls All of Our Money?