12-Year-Old Girl Explains What Most Economists Can't

[Nbadan]

Think of the billions in debt service we could save yearly if the US government printed and loaned itself it's own money...

12-Year-Old Girl Explains What Most Economists Can't About Money and Debt
Victoria Grant told a conference that governments, not banks, should create and lend a nation's money--and a video of her talk has gone viral on the Internet.

The youtube video of 12 year old Victoria Grant speaking at the Public Banking in America conference last month has gone viral, topping a million views on various websites.

Monetary reform—the contention that governments, not banks, should create and lend a nation’s money—has rarely even made the news, so this is a first. Either the times they are a-changin’, or Victoria managed to frame the message in a way that was so simple and clear that even a child could understand it.

Basically, her message was that banks create money “out of thin air” and lend it to people and governments at interest. If governments borrowed from their own banks, they could keep the interest and save a lot of money for the taxpayers.

...

In other words, 91% of the debt consists of compounded interest charges. Subtract those and the government would have a debt of only C$37 billion, very low and sustainable, just as it was before 1974.

...

Let’s see. The government can borrow money that ultimately comes from private banks, which admittedly create it out of thin air, and soak the taxpayers for a whopping interest bill; or it can borrow from its own bank, which also creates the money out of thin air, and avoid the interest.

...

http://www.alternet.org/story/155700...money_and_debt

[TDMVPDPOY]

they are already doing that with the bailouts out of thin air, buying back or swapping them for nothing....

if the US currency wasnt the only form of accepted currency for trading internationally, ppl would be dumping that for something else...theres already oversupply of the curreny on the money markets....

usa govt shouldve done this
all rich ots/politicians pullout their money from foreign accounts and change to any currency besides US notes
govt prints out the 16 trillion needed to pay debt
change new currency notes

hey commies use to do that when they took over a capitalist country with the new monie notes while exchange rate was bull

[2centsworth]

Low interest rates punishes savers, but maybe some don't want people to save and invest?

[TDMVPDPOY]

Low interest rates punishes savers, but maybe some don't want people to save and invest?

whether u rely on savings to get by, u are gettin destroyed with the shiity rates these days, its whether you cbf moving ur money around for better rates, or locking them into term deposits with the option to call out without any penalties

money in stocks lol...already destroyed for the last couple of days

[Wild Cobra]

We need voters to stop electing politicians who promise them other peoples money. It's our own collective fault.

[boutons_deux]

America gets the politicians it deserves, which is just another reason America is ed and un able. Now Americans have lost control of their country and the 1% won't ever let go.

Y'all are going to love it when you send your kids to K12 schools that will provide the scam eduation of the equivalent of U of Phoenix, Kaplan, Art Inst of America, etc.

[FuzzyLumpkins]

We need voters to stop electing politicians who promise them other peoples money. It's our own collective fault.

Congratulations on once again failing to understand a complex idea and instead parrot an unrelated GOP buzzphrase.

This has nothing to do with a redistribution of wealth. This is about having the fed lend directly to the consumer be it a business, organization or an individual rather than to banks who then lend it to us.

Cut out the middle man.

[TDMVPDPOY]

We need voters to stop electing politicians who promise them other peoples money. It's our own collective fault.

i think what should be required is they want the job, they should agree not to accept the perks and free that goes with being a politician...too much free at the taxpayers expense

[FuzzyLumpkins]

that's not it at all. a big part of the problem is the fed lending US dollars to our own govt who has to raise taxes to pay it back plus interest. we give up the right to print our own money and outsource it to a 3rd party whenever we could just print the money at our own bank, say the "First US Bank" just to make up an example and pay ourselves 0 interest. A big part of the national debt is interest owed to a private federal reserve.

Sure but its still not about redistribution of wealth. That's my point.

[Wild Cobra]

i think what should be required is they want the job, they should agree not to accept the perks and free that goes with being a politician...too much free at the taxpayers expense

That would help, but really...

People are voting to legalize theft. Politicians too often cater to the voters with something that costs money, that will benefit the people they are lobbying for votes.

Politicians are buying votes with our money. This is as bad as lobbyists buying politicians votes.

[greyforest]

We need voters to stop electing politicians who promise them other peoples money. It's our own collective fault.

Yeah, just stop voting in politicians who spend other people's money. So easy to find those politicians on the ballot.

[Wild Cobra]

Yeah, just stop voting in politicians who spend other people's money. So easy to find those politicians on the ballot.

Yep, the ones with money dig up dirt and skeletons and good people don't want to go through that. If they can't find dirt, they make it up.

[clambake]

Yep, the ones with money dig up dirt and skeletons and good people don't want to go through that. If they can't find dirt, they make it up.

like what? be specific.

[scott]

This video is a good example of why we don't let 12-year-old girls set economic policy.

Stay in school, forum dwellers!

[FuzzyLumpkins]

This video is a good example of why we don't let 12-year-old girls set economic policy.

Stay in school, forum dwellers!

I suppose but a naive perspective can cut through preconceived falsehoods. I find the notion that compounding growth that is the basis of our economy is not sustainable. Her perspective speaks to that.

[Borat Sagyidev]

This video is a good example of why we don't let 12-year-old girls set economic policy.

Stay in school, forum dwellers!

I'd take her policy over the banker run system we have now.

Although, thanks to bankers we have genius superficial financial products like the credit default swap.

[TDMVPDPOY]

politicians making promises but never deliver

[scott]

Oh yeah, I should state that we shouldn't let politicians set economic policy either.

[RandomGuy]

that's not it at all. a big part of the problem is the fed lending US dollars to our own govt who has to raise taxes to pay it back plus interest. we give up the right to print our own money and outsource it to a 3rd party whenever we could just print the money at our own bank, say the "First US Bank" just to make up an example and pay ourselves 0 interest. A big part of the national debt is interest owed to a private federal reserve.

... and where do all the profits from that 3rd party endevour go to?

(hint: it rhymes with "US freasury")

[RandomGuy]

Think of the billions in debt service we could save yearly if the US government printed and loaned itself it's own money...

Don't even know where to begin. That was awfully bad.

[RandomGuy]

ron paul even suggested the federal reserve forgiving us for our debts to them which would knock a few trillion off the debt and was promptly scoffed

scoff, scoff.

It is a dumb idea.

Setting aside treasuries for a second, let's get to a gem I heard from Mr. Paul the other day.

A bank takes $100 in deposits from you. It then turns around and lends $90 to someone.

Mr. Paul says that means the economy now has 190 dollars, when before it only had $100.

Is that correct?

[Nbadan]

Don't even know where to begin. That was awfully bad.

Was it? So, you know better?

--Abolish the Federal Reserve and the Private Bankers controlling your countries money--

"The Government should create, issue, and circulate all the currency and credit needed to satisfy the spending power of the Government and the buying power of consumers."

"The Privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government's greatest creative opportunity."

"By the adoption of these principles...the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity."

--Abraham Lincoln

"The powers of financial capitalism had a far-reaching plan, nothing less than to create a world system of financial control in private ... all » hands able to dominate the political system of each country and the economy of the world as a whole...Their secret is that they have annexed from governments, monarchies, and republics the power to create the world's money..."


THE MONEY MASTERS is a 3 1/2 hour non-fiction, historical do entary that traces the origins of the political power structure that rules our nation and the world today. The modern political power structure has its roots in the hidden manipulation and ac ulation of gold and other forms of money.
The development of fractional reserve banking practices in the 17th century brought to a cunning sophistication the secret techniques initially used by goldsmiths fraudulently to ac ulate wealth. With the formation of the privately-owned Bank of England in 1694, the yoke of economic slavery to a privately-owned "central" bank was first forced upon the backs of an entire nation, not removed but only made heavier with the passing of the three centuries to our day. Nation after nation, including America, has fallen prey to this cabal of international central bankers.

Now ALL of you know better...

[angrydude]

scoff, scoff.

It is a dumb idea.

Setting aside treasuries for a second, let's get to a gem I heard from Mr. Paul the other day.

A bank takes $100 in deposits from you. It then turns around and lends $90 to someone.

Mr. Paul says that means the economy now has 190 dollars, when before it only had $100.

Is that correct?

That is a gross simplification of a long highly complicated process but it gets at the essence of fractional reserve banking.


http://www.rayservers.com/images/Mod...yMechanics.pdf

[Yonivore]

Didn't somebody already do this?

[spursncowboys]

Oh yeah, I should state that we shouldn't let politicians set economic policy either.

so a milton friedman type.