General Question

Cheesefoot's avatar

Do the movies 'Money as Debt' i and ii accurately describe our situation?

Asked by Cheesefoot (76 points ) December 27th, 2009

Money as Debt i
Money as Debt ii
If YES: Do YOU pay far more attention to relatively unimportant matters? Why?

If NO: Explain the flaws of the movies.

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5 Answers

Kelly_Obrien's avatar

Yes. No. Because I don’t sweat the small stuff.

SeventhSense's avatar

I believe so but the amazing thing is that it’s hardly a conspiracy. It exists right under our nose. It’s scary but not only is money an instrument to discharge debt but WE ARE INSTRUMENTS to discharge debt for our government. Where does it end? When is the inhumanity of this so profound that the institutions we have created to serve us are so beholden to these interests(systems) that we are jailed or worse because we can not keep up with this insane pace?

The system of wealth creation especially the banking concerns are truly parasitical. We create science fiction movies about machines that milk humans or drain their blood. As fantastical as these visions are, is there anything more accurate a depiction of our continuing state of affairs? We are slaves to systems that are unsustainable yet benefit these fleas on our backs.

Zuma's avatar

Yes, the movies are accurate but still somewhat misleading. They leave you with the impression that only gold, or some real tangible good, can back “real” money. What they don’t tell you is that debt is backed by the promise to repay, and that promise has to be credible for the money to be lent. So, when they give the example of a banking system lending out $100,000 on $1111.12 in starting capital, what they are not telling you is that there are dozens of promissory notes—people’s pledges of good faith—that they will in fact repay the loans. Even though there is no tangible thing backing the dollar borrowed, there is a pledge of an equivalent amount of labor.

In order for the system to collapse, everyone in the system has to welsh on their promise to honor their debts with an equivalent measure of goods or labor. So while “fiat” currency is not backed by gold, it is backed by the full faith and credit of the entire nation—which is actually more secure than a currency that is backed by some commodity like gold, diamonds or oil, whose price can fluctuate depending on available supplies and demand. It is this guaranteed stability of the fiat dollar that provides the “soundness” and value of the currency.

Money is ultimately based on credibility and trust, not commodities.

This system can, of course, be pushed to the limit by banks who disregard traditional creditworthiness tests and begin lending money to people who cannot repay, secure in the knowledge that when the bubble they have created comes crashing down, they will be bailed out by the central government who, in turn, are backed by future generations of taxpayers. As citizens we are well within our rights to demand regulations that prevent this sort of deliberate predation on the part of banks. Unfortunately, whenever an enterprise becomes “too big to fail” the power is all on their side—especially, when bankers can buy off Congress and immunize themselves against public accountability.

jonami's avatar

i didn’t watch this. i own very little and have no bills, so to speak. money is just something you can use to help others. and feed others and yourself.. there is no reason to work for it or be concerned about it. it is useless. in the bible it says “why worry about what you will eat drink or wear? your father in heaven knows you need all of these things. first, be concerned with the kingdom of heaven, and then all of these things will be provided for you.”

SeventhSense's avatar

@Zuma
Money is ultimately based on credibility and trust
And if the credibility of those overseeing the debt is questionable, then the fiat currency means even less than nothing. Case in point the assigning of AAA rated debt which was anything but with complete lack of integrity by the rating agencies which led to near worldwide collapse. In almost every industry there is continued posted losses.

Personally I am extended more credit every year which is completely disproportionate to my capacity to repay yet creditors are insatiable in their greed and have proven that they will act completely unscrupulous without strict oversight. Not unlike a great white shark which will continue to consume until it actually egests its stomach contents. Except in our case the middle and lower classes are puked on.

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