I have an economics degree. I have worked for 30 years. Like most people I know we are too busy with daily lives we never look into HOW MONEY REALLY WORKS ... until my bank screwed up and cost me 1/3 of my retirement. I quitted my job to learn MONEY. I can't and don't trust anybody. I must earn it back myself. Information offered here is more VALUABLE than we think. Thank you for sharing.
Oh no! So sorry that happened to you but glad that you were able to at least make it back although you didn't have to if your bank had done things right .
@@karungarimaina7613 I am still learning. Haven't made it back yet. I did it before. In mid 90's I lost my mind. In 18 months I lost 250,000 in roulette. Tried everything, suicide included, didn't work. Someone told me to learn blackjack. Long story short, after 20 years I got all my money back and some, but work condition very poor, constantly got kicked out or harassed. I am confident I can learn this, concept and requirement very similar, 1. Some basic skills; 2. Patience to wait; 3. discipline to do the right thing; 4. A start up bankroll. In fact, father of blackjack, Dr Ed Thorpe told us pro blackjack is a good pre-requisite for equity investments.
America founders wrote all banks were to be decentralized, then modern politicians changed that policy, and now the solution is to go back to decentralized banking ?! We need to follow through with our Anti-Trust laws. One of the reasons we have supply chain issues
*what a video mate! Schools still teaching outdated systems are part of the problem, but luckily we have creators like you to help us understand better*
@@CR-fk2mh because they count on at least double-dipping in whatever trusts or fonds they get their POA and beneficiary title over and to. We don't have finance, the City of London have finance, as Richard Werner said. It's all debt, fractional reserve banking, IMF as the almost worldwide Treasury. IRS is a Crown corp operating from Puerto Rico, they can't legally do collection agency business on north American soil, US taxes goes to the QUEEN corp trusts. It all comes from our correctly written signatures/indorsements on the negotiable instruments contracts, debt notes/letters/"loans"/promissory notes etc, the banks etc desperately need that.
@@CR-fk2mh They don’t refuse to give loan. They assess each individual based on their ability to repay that loan back. Even though banks can create money out of thin air they need an individual to asked for « money to borrow » and be able to « pay it back » somehow. Otherwise, that money that was just created would be lost forever if that individual couldn’t pay it back.
many banks and credit unions have general ledgers and settlement accounts. the ones that do not, their banking core provides this information. I do not know the validity of 'creating money out of thin air' other than the US Treasury doing it, otherwise that is counterfeit. Either each cycle or each day, the bank/credit union would have to reconcile their accounts. They cannot have infinite money at an ATM and thus not infinite 'creating money out of thin air'.
That's why a lot of people are stuck and have to work until...I guess, forever. We really have to break free and think about the bigger picture and take risks/action
@@VincentChan Yeah it's definitely inevitable, the cracks are getting larger and larger and they couldn't hold it in much longer. Not sure when it will come but with the way things are economically, it might come very soon. Thanks for the video!
Raw thought: As long as humans are in control of other humans they will exploit them, especially those who are the most vulnerable and helpless. It's not that they want to but they will be made to do that. Not necessarily being evil but still.
@@VincentChan I was aware of the way banks create money out of thin air when they extend credit. However, you crystallized why it's so bad for our economy... it doesn't create value, other than to the fat cats.
But wait isn’t decentralised banks exactly what went so badly for Italy? Everyone lost all their money because the decentralised, hundreds of banks weren’t big enough to support down turns in the economy, so they went bust. Meaning anyone who has placed money in those banks lost all of it
You got the meaning of decentralised Wrong decentralised like bitcoin/ crypto there is no central point of failure and you control your own it’s peer to peer. A bank is totally centralised entity that has control of your possession ie money 💴 .
So if every country keeps printing money with no gold as backing, does that mean the world is in debt? Moreover, there is a limited amount of gold in the world.
Yes but the US was actually very smart. Oil can only be bought in US dollars. Money is no longer backed by gold and can be thought of as being backed by oil. Its why we're in all these countries. We have to maintain oil or the US crumbles. If oil stops so does literally everything.
money that's being loaned...only to be loaned again. I think in crypto (correct me if I'm wrong) is double spend? Our financial system definitely needs an overhaul with new technologies and the values of modern day. BTW you're such a great storyteller. You have evolved so much from your first videos. A major inspo man!
OMG, I can’t be the only one who gets so scared watching his videos 🙉 it feels like the world is so volatile and vulnerable 🥺 God, so many people need to watch his videos
You stopped the circle at the borrower, but the bank has to pay an interest on their paper entries too. So full circle what's going on. Is this the velocity of money that has been dropping that you're talking about?
I just found this and knew some things but this is such a very well compiled and informative video on banking. I honestly fully agree on this, banks just essentially suck, they don't actually own any of the tech mostly, every bank I know of just uses a bunch of third party financial services
This is a very informative and interesting video! Keep up the amazing work. But in term of the problem and credit creation theory, I think more research is required like looking into the history of banking and personally, I do not believe money is created out of thin air like everyone believes. Germany is definitely a good example of how banking can “decentralised”. Also as you mention economic theory at the end is still theory though Richard Werner did bring some good insights on money and banking. In my experience, learning economic is like learning a complex systems with many moving parts.
I have a question. I thought each bank has a audit report about their balance sheet checked by reserve bank each year. Although they don’t need check their deposit number before they can lend money to public. However, if reserve bank found out the bank doesn’t have enough deposit, they can fine banks ?
They get written up, but honestly they are too big to fail hence the 2008 bailout. They are in control. They want you to believe that they audit each other but they all work for the same purpose. Whos auditing the auditor?
I was eating my favorite chocolate chip cookie while watching this deep video so not all of it registered. Anyone have the cliffs notes version of it? I wish to take away the lesson.
@@VincentChan The content is so refreshing. You are such an engaging speaker and I can see this is something that genuinely lights up your brain and this just makes a really good video for me
@@tunaste and wanting money is a bad thing? Ultimately, he makes money by providing value and he works hard to provide videos like this one, so I think that deserves my personal compliment, you might not and that's fine. However, I'm not commenting to get him to like me or be my friend and I certainly wouldn't pay someone to interact with me or like me back.
CBDC's will be great for decentralization in my opinion. When your CBDC coin is being pulled out of your wallet without notice, people will run to decentralization 🙏🙏
I would like to know your views on gold, since it can't be created out of thin air like money can. It's hovering close to historic highs but some feel that it will explode to the upside in the near term.
You said in 2:50 "All from your initial 1000$ deposit" . Mathematically the borrowed 900$ is counted negative so it's 1000-900=100 not 1900. The money came from the difference between the interests of the deposit (~3%) and the borrowing (~12% to ~50%)
@@TryABaconSlice but he counted that 900 as well as Johns 900. I dont get that part either. John took 900 out of the bank so how is it being added to the banking system. I can see how the 3rd guy deposited the 900 back in but this just takes it back to the intial 1000 not up to 2700. Hope someone can explain.
@@198746779838 because the bank only needs to guarantee 10% of the underlying in this example. Person A deposits $1000 into a bank, the bank lends person B $900 that doesnt actually exist, person B banks that $900 the bank now has $1800 on the books but only $1000 actually exists. Keep extrapolating that. Person C gets loaned $810 and buys something off D then D deposits the $810 and now the bank has $2610 all created from $1000 with a 10% underlying requirement. In this fashion the bank can create $9000 with $1000 underlying
Please use your intelligence and skill to help the planet and the environment. I know other people are important but the planet is in a terrible state and needs smart people to help it.
Wow what a nice content indeed , I’m pleased to find such video Well yes I believe , bank can create money out of a thin , even at that we still suffer to make money 💰 At last after the hustle and stress 90% of us still deposit our money to the bank in the naming of savings .. Well the world is now Advanced to the extent that saving money in banks 🏦 is Outdated , while will I have to keep my money in bank and still debited for maintenance and other fees while I can invest my money 💰 in Crypto which In Return provide more profits
When you sell your crypto or take profits, you convert that back into money, which you then store in a bank. You cannot function outside of the financial system unfortunately
@@TryABaconSlice Well that’s it if you have Been deep into Crypto currency you will have no reason to store money in the bank 🏦 Whereas there’s Usdt where you can save your profits and earns It will never depreciate it will be the same figure till whenever …..
@@arabellamuller2461 I agree with you Soon Digital Currency will take over the world 🌎 which Crypto currency is an example of , in coming Generations possibly cashless policy will be activated well ..
Great job Vincent, thanks for providing such insights 👏🙌 Could you please check your Email? There I addressed something important related to your TH-cam channel.
Want more video essays / mini-documentaries around economics and business? Check out my 2nd YT channel: bit.ly/YTpuzzle
We
I have an economics degree. I have worked for 30 years. Like most people I know we are too busy with daily lives we never look into HOW MONEY REALLY WORKS ... until my bank screwed up and cost me 1/3 of my retirement. I quitted my job to learn MONEY. I can't and don't trust anybody. I must earn it back myself. Information offered here is more VALUABLE than we think. Thank you for sharing.
Oh no! So sorry that happened to you but glad that you were able to at least make it back although you didn't have to if your bank had done things right .
Could you advice me on the sources you use? I am 22 econ fresh graduate
@@karungarimaina7613 I am still learning. Haven't made it back yet. I did it before. In mid 90's I lost my mind. In 18 months I lost 250,000 in roulette. Tried everything, suicide included, didn't work. Someone told me to learn blackjack. Long story short, after 20 years I got all my money back and some, but work condition very poor, constantly got kicked out or harassed. I am confident I can learn this, concept and requirement very similar, 1. Some basic skills; 2. Patience to wait; 3. discipline to do the right thing; 4. A start up bankroll. In fact, father of blackjack, Dr Ed Thorpe told us pro blackjack is a good pre-requisite for equity investments.
@DonRua 🙏🏾I am so glad you were able to recoup over time and that the suicide attempt didn’t succeed. God speed!
America founders wrote all banks were to be decentralized, then modern politicians changed that policy, and now the solution is to go back to decentralized banking ?! We need to follow through with our Anti-Trust laws. One of the reasons we have supply chain issues
Learned a semesters worth of knowledge in 15 minutes. Love how you transitioned into the next video!
*what a video mate! Schools still teaching outdated systems are part of the problem, but luckily we have creators like you to help us understand better*
Do you believe banks can create money out of thin air?
If banks create money out of thin air, and bearing “no risk”, why refuse to give a loan?
@@CR-fk2mh because they count on at least double-dipping in whatever trusts or fonds they get their POA and beneficiary title over and to.
We don't have finance, the City of London have finance, as Richard Werner said. It's all debt, fractional reserve banking, IMF as the almost worldwide Treasury. IRS is a Crown corp operating from Puerto Rico, they can't legally do collection agency business on north American soil, US taxes goes to the QUEEN corp trusts.
It all comes from our correctly written signatures/indorsements on the negotiable instruments contracts, debt notes/letters/"loans"/promissory notes etc, the banks etc desperately need that.
@@CR-fk2mh They don’t refuse to give loan.
They assess each individual based on their ability to repay that loan back.
Even though banks can create money out of thin air they need an individual to asked for « money to borrow » and be able to « pay it back » somehow.
Otherwise, that money that was just created would be lost forever if that individual couldn’t pay it back.
many banks and credit unions have general ledgers and settlement accounts. the ones that do not, their banking core provides this information. I do not know the validity of 'creating money out of thin air' other than the US Treasury doing it, otherwise that is counterfeit. Either each cycle or each day, the bank/credit union would have to reconcile their accounts. They cannot have infinite money at an ATM and thus not infinite 'creating money out of thin air'.
@@CR-fk2mh inflation
Money is the strongest illusion humans created.
Well said. And never taught in school.
Especially fiat money paper
That's why a lot of people are stuck and have to work until...I guess, forever. We really have to break free and think about the bigger picture and take risks/action
thanks for sharing :) what did you think of the video?
@@VincentChan Yeah it's definitely inevitable, the cracks are getting larger and larger and they couldn't hold it in much longer. Not sure when it will come but with the way things are economically, it might come very soon. Thanks for the video!
Can you say "debt slave"?
Well, now I'm depressed. What can I do, as an individual, to protect myself from all this horror?
Raw thought: As long as humans are in control of other humans they will exploit them, especially those who are the most vulnerable and helpless. It's not that they want to but they will be made to do that. Not necessarily being evil but still.
Really appreciate the effort it must have taken to put this video together ...amazing work! Thank you!
thanks so much manny! haha took a look of research but im happy how it turned out :) did you learn anything new?
@@VincentChan I was aware of the way banks create money out of thin air when they extend credit. However, you crystallized why it's so bad for our economy... it doesn't create value, other than to the fat cats.
But wait isn’t decentralised banks exactly what went so badly for Italy?
Everyone lost all their money because the decentralised, hundreds of banks weren’t big enough to support down turns in the economy, so they went bust. Meaning anyone who has placed money in those banks lost all of it
You got the meaning of decentralised Wrong decentralised like bitcoin/ crypto there is no central point of failure and you control your own it’s peer to peer. A bank is totally centralised entity that has control of your possession ie money 💴 .
So if every country keeps printing money with no gold as backing, does that mean the world is in debt?
Moreover, there is a limited amount of gold in the world.
Yes but the US was actually very smart. Oil can only be bought in US dollars. Money is no longer backed by gold and can be thought of as being backed by oil. Its why we're in all these countries. We have to maintain oil or the US crumbles. If oil stops so does literally everything.
money that's being loaned...only to be loaned again. I think in crypto (correct me if I'm wrong) is double spend? Our financial system definitely needs an overhaul with new technologies and the values of modern day. BTW you're such a great storyteller. You have evolved so much from your first videos. A major inspo man!
OMG, I can’t be the only one who gets so scared watching his videos 🙉 it feels like the world is so volatile and vulnerable 🥺 God, so many people need to watch his videos
You stopped the circle at the borrower, but the bank has to pay an interest on their paper entries too. So full circle what's going on. Is this the velocity of money that has been dropping that you're talking about?
I would love to know about housing market. That will be a thriller of a topic.
great suggestion!! will def make a video about the housing market soon :) did you enjoy this video?
Loved the video! Please to cover this - there are so many people like me worried that we’ll never afford a house
@@VincentChan two months later but yes XD
Man, your content is reaaally good!!!! Thanks for posting!!!
in one word: SLAVERY
FYI - that is not a photo of the real Satoshi Nakamoto. That's just a different person with the same name. Or is it?...
Great video btw!
I just found this and knew some things but this is such a very well compiled and informative video on banking. I honestly fully agree on this, banks just essentially suck, they don't actually own any of the tech mostly, every bank I know of just uses a bunch of third party financial services
Dude the production on this is TIGHT
Thank you! What did you think of the content? :)
@@VincentChan Yeah man great content as always
This is a very informative and interesting video! Keep up the amazing work. But in term of the problem and credit creation theory, I think more research is required like looking into the history of banking and personally, I do not believe money is created out of thin air like everyone believes. Germany is definitely a good example of how banking can “decentralised”. Also as you mention economic theory at the end is still theory though Richard Werner did bring some good insights on money and banking. In my experience, learning economic is like learning a complex systems with many moving parts.
I remember watching this as a conspiracy theory 15 years ago
Ok plz don't make them expire.
The editing on this one is really nice!
Thank you kanken!! what did you think about the video content itself? :)
I have a question. I thought each bank has a audit report about their balance sheet checked by reserve bank each year. Although they don’t need check their deposit number before they can lend money to public. However, if reserve bank found out the bank doesn’t have enough deposit, they can fine banks ?
They get written up, but honestly they are too big to fail hence the 2008 bailout. They are in control. They want you to believe that they audit each other but they all work for the same purpose. Whos auditing the auditor?
I was eating my favorite chocolate chip cookie while watching this deep video so not all of it registered. Anyone have the cliffs notes version of it? I wish to take away the lesson.
Vincent you’re such a gift. You just don’t get this on other channels. Had me enthralled all the way through.
thank you so much weasel :) appreciate it!! what did you think of the video content?
@@VincentChan The content is so refreshing. You are such an engaging speaker and I can see this is something that genuinely lights up your brain and this just makes a really good video for me
@@Nate_Daniel this guy is a shill whose words & likeness belong to whoever pays the most.
@@tunaste and wanting money is a bad thing? Ultimately, he makes money by providing value and he works hard to provide videos like this one, so I think that deserves my personal compliment, you might not and that's fine.
However, I'm not commenting to get him to like me or be my friend and I certainly wouldn't pay someone to interact with me or like me back.
This is why I don't cry when banks get robbed lol
You are my favorite Economist on youtube
The quality of your videos have increased significantly!
Who ever is reading this comment, you'll be successful oneday just keep beleiving in yourself ❤️
yes!
Dang, you really went from working for them to working against them, right ? :D
Very cool video, thanks for the hard work !
Well, if you discover an "inconvenient" truth, what are you supposed to do?
Ray Dalio mentions this and how we value digital content. China could well be the next currency reserve
Ray Dailo's recent video, Principles for Dealing with the Changing World Order should be studied. One of the best videos on TH-cam.
Good video. Personally I'm very weary of cbdc. Don't really trust the big banks but there isn't much other option unless you go full in on crypto.
I truly love your vulnerability content and auto subscribe you :) keep up the amazing and honest content please thank you for your effort
Oh dang I didn’t even think about CBDC. It would be a good idea if the banks and governments weren’t snakes
haha yeah! gotta have more transparency. what did you think of the video?
I love this kid. Brilliant
Great content! You know how to tell a story!
CBDC's will be great for decentralization in my opinion. When your CBDC coin is being pulled out of your wallet without notice, people will run to decentralization 🙏🙏
When it will be to late?
keep grinding brother. your time is near.
Wut
I’ve been checking for an updated video almost every day. Your video style reminds me of patriot act. THANK YOU FOR QUALITY CONTENT!
I love ur financial advice
thanks for watching! what did you think of the video?
@@VincentChan it was very informational and educational. I didnt know few of the other theory's on how banks made money
Awesome content Vincent. Very informative.
Thank you!! that means a lot :D what did you think of the video content?
@@VincentChan on point to know everything that is running behind the scene of our monetary world.
@@MrShinAsuka haha yeah its wild!
I would like to know your views on gold, since it can't be created out of thin air like money can. It's hovering close to historic highs but some feel that it will explode to the upside in the near term.
Thank you so much for your brave, sincere, educated information. 🙏👍😇
Thanks for watching! Did you learn anything new from this video?
keep up the good work Vince!
Eye opening. Thank you for your videos.
Interesting way to look at things. Great vid 👍
NFTs aren't bad by nature or how they can be used. How they are being used is another matter
Well if my money is gone expire im gone buy gold, silver or something valuable that can be sold latter 🤑🤑🤑
Weird outro into nfts…. Otherwise great video.
Does this mean that banks can loan unlimited amount of money?
Money is a lie and the believe is true only
thanks for sharing! what did you think of the video? :)
makes sense very informative!
The less government control in my life, the better.
Let’s go Vincent!
hey olley! hope you enjoyed the video
@@VincentChan sure did brother! Editing on point.
@@OlleyThorpe thanks so much man!! did you learn anything new
Felt like just finished watching an Aaron Sorkin movie
Wow what a great video. I can’t help but feel worried though. What can we do vin?!
Great Content! Very informative. Thank you!
And charges you fees for that made up money before you even get a dollar of it. Wow
Through printing
What about quantum financial system backed by Gold ?
My answer: This is why I'm going back to barter. F*ck currency games.
Did you actually burn that 100 at the beginng of the video or it just really good editing bc either way that hurt to watch🤣
You said in 2:50 "All from your initial 1000$ deposit" . Mathematically the borrowed 900$ is counted negative so it's 1000-900=100 not 1900.
The money came from the difference between the interests of the deposit (~3%) and the borrowing (~12% to ~50%)
But its $900 deposited into the same bank and loaned out again at 10% backing.
@@TryABaconSlice but he counted that 900 as well as Johns 900. I dont get that part either. John took 900 out of the bank so how is it being added to the banking system. I can see how the 3rd guy deposited the 900 back in but this just takes it back to the intial 1000 not up to 2700. Hope someone can explain.
@@198746779838 because the bank only needs to guarantee 10% of the underlying in this example. Person A deposits $1000 into a bank, the bank lends person B $900 that doesnt actually exist, person B banks that $900 the bank now has $1800 on the books but only $1000 actually exists. Keep extrapolating that. Person C gets loaned $810 and buys something off D then D deposits the $810 and now the bank has $2610 all created from $1000 with a 10% underlying requirement. In this fashion the bank can create $9000 with $1000 underlying
@@TryABaconSlice thanks that made sense
Thanks!
Please use your intelligence and skill to help the planet and the environment. I know other people are important but the planet is in a terrible state and needs smart people to help it.
Superb Content!!
Excellent content...
Wow what a nice content indeed , I’m pleased to find such video
Well yes I believe , bank can create money out of a thin , even at that we still suffer to make money 💰
At last after the hustle and stress 90% of us still deposit our money to the bank in the naming of savings ..
Well the world is now Advanced to the extent that saving money in banks 🏦 is Outdated , while will I have to keep my money in bank and still debited for maintenance and other fees while I can invest my money 💰 in Crypto which In Return provide more profits
When you sell your crypto or take profits, you convert that back into money, which you then store in a bank. You cannot function outside of the financial system unfortunately
@@TryABaconSlice Well that’s it if you have Been deep into Crypto currency you will have no reason to store money in the bank 🏦
Whereas there’s Usdt where you can save your profits and earns
It will never depreciate it will be the same figure till whenever …..
@@TryABaconSlice it happened that in some organizations crypto is accepted as a mode of receiving payment
@@arabellamuller2461 I agree with you
Soon Digital Currency will take over the world 🌎 which Crypto currency is an example of , in coming Generations possibly cashless policy will be activated well ..
@@arabellamuller2461 You said something about investing , if you don’t mind can you share some idea and story with me ?
lots of missing information here
Interesting!
You should talk about what Wells Fargo is doing to Wendy Williams
Plot twist, Satoshi is the professor
it was too complicated for me .....
such a good video!🎉
Will all banks go away?
never D: what did you think of the video btw
@@VincentChan I thought it was good. I have heard about this issue a while back but I still learn something new
No. Not worth it. We need a trustless system... BTC and other assets
Who thought monopoly was just a board game? Lols
Legend!
Hey, new hair style
If they expire my currency they'll gain interest in these hands.
Great content!
thanks so much henry!
Fucking beautiful video
Cool video
buy luna and its stablecoin UST. decentralised central banking ftw
this is one of those videos you have to watch twice to understand. Good video tho.
Oh no was it too confusing? The topic is a bit complex 😱😱
Your video is not confusing it’s the topic. Mind blowing 🤯.
Thank you for sharing this information with us beautifully in one concise video.
Very well done!
Entertaining video but that's just what it is.
As an economist I disagree this video doesn't talk or mention the overnight cash rate smh
Thank you for mentioning this. Learnt something new.
Great job Vincent, thanks for providing such insights 👏🙌
Could you please check your Email? There I addressed something important related to your TH-cam channel.
Sup
hey! what did you think of the video?
Sup!
Lies!!!!
lies about what :O
@@VincentChan the biggest financial lie!
@@DK-ic5uc yes!! what did you think of the video
Do know who I am?
⮕ 📈Get your FREE investing starter kit and masterclass here: bit.ly/3wuoB5w
15:35 framing this guy as the real Satoshi is terribly misleading. Thumbs down
I hit dislike button coz I don't like your diction n presentation
oh no, how come you dont like the presentation?