King of the Paupers: How banks create money

[Sapiens]

[Rajiv]

Re: King of the Paupers: How banks create money

Here is Turmel's web site and article on - LETS Engineering Bank Math

As Galbraith remarks, higher interest rates, it is hoped, "will curb inflation." These comments of Galbraith illustrate why, although the raising of interest rates is the weapon against inflation chosen by those who profit by it, it is also clear that as a method it cannot finally work. John Turmel, a Canadian civil engineer and campaigner against usury, has in two long articles brought algebra, plumbing and poetry to bear on the task."

JCT: This is the Big Lie of Economics based upon the assumption that inflation is more money chasing the same goods, Shift A, whereas I've proven that it is actually the same money chasign less goods after foreclosure, Shift B. Shift B inflation is unknown in economics but the following analysis explains why inflation in Argentina went from 1000% down to 36% after several provinces instituted local provincial LETS bond currencies.

ANALYSIS:
The problem of exponential growth of debt is created within the banking system and therefore a thorough understanding of the banking system is helpful.

Also interesting is Turmel's entire website

[ricket]

Re: King of the Paupers: How banks create money

snip videos

Excellent videos. He breaks into some poetry there at some points...!

I was taking notes on his exercise about demonstrating the effects of confiscation through interest bearing contracts. Do you, or anyone else, know of any other good demonstrations that show that same effect? I know that the game of Monopoly is pretty much the same thing, but I think it's too complex to effectively demonstrate what is going on.

I would like to come up with some sort of presentation/lecture that would give people the "Eureka!" moment that demonstrates exactly how fraudulent our financial system really is. I don't think most people realize what is truly going on, and why we truly have the problems we do...

[FRED]

Re: King of the Paupers: How banks create money

Excellent videos. He breaks into some poetry there at some points...!

I was taking notes on his exercise about demonstrating the effects of confiscation through interest bearing contracts. Do you, or anyone else, know of any other good demonstrations that show that same effect? I know that the game of Monopoly is pretty much the same thing, but I think it's too complex to effectively demonstrate what is going on.

I would like to come up with some sort of presentation/lecture that would give people the "Eureka!" moment that demonstrates exactly how fraudulent our financial system really is. I don't think most people realize what is truly going on, and why we truly have the problems we do...

How about Oligopoly?

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OLIGOPOLY: Fun Family Board Game for the post FIRE Economy Depression

Our modern version of MONOPOLY® will be a hit over the next few years when families once again as in the 1930s find themselves with too much extra time on their hands and looking for ways not to strangle each other, and learn how the economy really works in the bargain

Parker Bros. introduced the family board game MONOPOLY® in 1935 during the depths of The Great Depression. The original game was reportedly invented in 1904 by a Quaker woman named Elizabeth J. Magie Phillips who hoped to use it as a teaching tool to explain the single tax theory of Henry George, specifically to illustrate the negative aspects the concentrating of land ownership by monopolies. She called her game The Landlord's Game.

As a MONOPOLY® game player you get to collect and handle money, even if it’s only money printed on brightly colored paper one grade above bathroom tissue. It gave millions a chance to handle fake money at a time when no one had any real money. Thus the broad appeal -- over 250 million sets of the game have been sold worldwide.

One of our members asked (Hat tip to iTuliper don), if the game were to come out during the now developing depression following the collapse of the FIRE Economy versus in the 1930s, how might the game look today? Here we bring the old Depression era favorite up to date as the iTulip game: OLIGOPOLY. more...

[Rajiv]

Re: King of the Paupers: How banks create money

Richard Douthwaite discussing Argentina's use of auxiliary currencies including LETS systems and provincial currencies during their most recent currency crisis.(Audio)

[MEDIA]http://media.globalpublicmedia.com/RAM/2003/05/GPM.RichardDouthwaite.Dublin.2003-05-18.ram[/MEDIA]

[ricket]

Re: King of the Paupers: How banks create money

How about Oligopoly?

I recall this game, but like Monopoly, it requires "too much thought" (not for me of course). My experience in talking to my friends and family is that most of the economic thought is too "wonkish" even though it really is simple compared to the truly wonky economic discussions.

Im thinking the situation needs to be more like a quick demonstration that can take place in just a few minutes, and needs little introduction and few rules to demonstrate the main concept --that their money is being stolen from them right under the noses and they don't even realize it or have any control over that fact, no matter how hard they try. My family seems to be under the impression that as long as you work hard, you'll be successful and will be able to pay back your debts (so long as you don't take out too much). But I want to prove to them that that is not the case, and that the system is actually designed to force people into bankruptcy which allows the banks to confiscate property. This is outright theft in every classical definition...

[Rajiv]

Re: King of the Paupers: How banks create money

I think the best way is utilizing the "Wheat and chessboard problem" -- this highlights the problem of compound interest very succinctly. Emphasize that the bankers "DO NOT" lend out the money deposited in the bank, but rather create new money out of thin air to make their loans, and that they do not create the money with which to pay the interest.

You can also use the Chris Martenson presentation