Originally Posted by MarcUK
but, this system and its devastating results is not directly due to government, but due to governments being explicitly held to randsom by a small number of invisible unnacountable men in control of the money. That governments then got into bed with these nasty fellas - perhaps because they completely had no other option - is another thing.
While I see plenty of evil in fiat money, I see little in banking and charging interest. The issues that the video forgets to deal with to keep it completely honest are growth, productivity and time. When you take a loan for a home for $100k you do end up paying back a much larger pie of about $267k. However that is not immediate but rather over thirty years. If a loan allows purchases that improve productivity, the pie has been grown. Government can determine the fractional multiplier for reserves and issues the actual currency in paper form.
The problem at the core though is that while the money supply is supposed to stay consistent to the overall growth of the economy. The government has instead allowed it to grow faster or even intentionally made it grow faster than the economy which causes inflation and dilutes the value of the entire money supply.
no one wants that at all, but that scenario is specifically built into the banking system we use. The government are just powerless puppetts in this system, and the system is completely designed so that in the end, a few people own completely everything.
You might think you are doing alright in life, but eventually this system is going to catch up with you, and you will lose everything - whoever you are. All the richer are doing is delaying the time they will be fucked over by the system compared to the poor.
While the government can destroy the value of a currency, it cannot destroy the value of items which have inherent value. This is in partly why I own real estate because it is the perfect hedge against inflation. Assets remain assets even in the absence of currency. If you have chickens and a farm. You can still raise the chicks, sell the eggs etc. You may have to barter them versus converting their value to currency to more easily spend later but the value is intrinsic.
So in this regard inflation cannot harm the rich. the real problem is that the poor have no assets and the middle class often have liabilities that they believe are assets. Is your home an asset? My view is no. My view of an asset is that it must put money in your pocket. People think their wedding rings, golf clubs, cars, big screen televisions, etc. are assets. In reality, if they were in a financial pinch, they would sell for cents on the dollar. The other side of this is that credit becomes VERY expensive and thus the middle class begins missing out on opportunities that they can no longer afford to finance, things like college and forming small businesses. So upward mobility becomes harder to achieve.