THE MONETARY SYSTEM: Why and How Did This Debt Get So Big, and What Does It Mean?

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
—Thomas Jefferson, (Attributed)
3rd president of US (1743 – 1826)

I don’t understand the monetary system very well. I try, but it’s massive, obviously, and endlessly complex. I don’t quite grasp fiat money or what the end of the gold standard meant, and Bretton Woods etc. I don’t understand the stock market very well, let alone derivatives, or how big banks create money (out of thick air), or what it means for America to be tens of trillion dollars in debt, or Canada to have a massive debt of its own. I don’t understand how it’s paid off, or if it can be. I don’t really understand what it means for the future, either. Or why gold is doing so well right now. Or what the bail-out really was, or means. This is as honest as I can be.

Having said that, this short piece (10 minutes) may be of great value or hopelessly simplified, or just dead wrong, or profoundly right. Either way, I could actually follow what the fellow was saying, and I could grasp when he explained the changes in power structures in the States from the beginning of the republic, to after the Civil War, to after 1913, with the formation of the Federal Reserve and the IRS.

As a caveat, I am always suspicious of those who harken back to the ‘true freedom’ of the time of the Founding Fathers, when in fact, and without mentioning it, the truth is, legal slavery for millions was a way of life, women couldn’t vote or own land (I don’t think), and only the wealthy landowners could vote at all.

Further, it’s a little bit curious to me how the videos put out from the so-called fringe element, on the net, talking about ‘the elite,’ almost always, graphically speaking, look so strikingly similar. A little dated, a lot of triangles, and pictures of currency, all with limited graphics on a black background (or something to that effect). Conspiracy, my friend? Or perhaps one frustrated and lonely graphic designer imprisoned in Alex Jones’ basement, forced to use some old html program, crying out for a Canon 5D and, say, Adobe After Effects CS 5? You tell me. Ay, you tell me…

All that aside, here is at least a thought-provoking—and perhaps very enlightening—first part in a ‘course’ in economics from a fella called Damon Vrabel. Hope it’s useful, and more expanding than depressing.

Vrabel’s website is here, with many other videos in this ‘course’ that I have not yet seen, but will watch soon. By the way, Damon, thanks for your time and generosity.

Here’s to freedom, and understanding debt, and the chains held by the grand debt. And whatever you do, don’t ‘bank’ on it.



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