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Banking Explained – Money and Credit

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Banks are a riddle wrapped up in an enigma. We all kind of know that they do stuff with money we don’t understand, while the last crisis left a feeling of deep mistrust and confusion. We try to shed a bit of light onto the banking system. Why were banks invented, why did they cause the last crisis and are there alternatives? The music from the video is available here! http://epicmountainmusic.bandcamp.com/track/banking http://soundcloud.com/epicmountain/banking http://www.epic-mountain.com Visit us on our Website, Twitter, Facebook, Patreon or Behance to say hi! http://kurzgesagt.org https://www.facebook.com/Kurzgesagt https://twitter.com/Kurz_Gesagt http://www.patreon.com/Kurzgesagt http://www.behance.net/Kurzgesagt Banking Explained – Money and Credit Help us caption & translate this video! http://www.youtube.com/timedtext_cs_panel?c=UCsXVk37bltHxD1rDPwtNM8Q&tab=2
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Text Comments (4629)
Jupiter rising (1 hour ago)
This is utter garbage, they cherry picking information, factional reserve banking, what about that, it's selling B.S. Rate rigging, exchange rate rigging, it's a nefarious cabal, 99% controlled by Jewish interests. 0.2% of the worlds population are Jews yet they control 99% of the entire worlds money supply, only roughly 3 ot 50% of the world money supply is in physical currency the rest is just digital, backed by fuck all, it all runs on I.O.U's FACT! They own the film industries, worlds biggest news/media outlets, they are into some the the biggest global money societal effecting industries around the whole world. All, headed for the most part by the Rothschilds who run everything, all the central banking systems in almost every country.
Foxtrot Delta (1 day ago)
'When the Banks break, it is seldom the bankers who go hungry'. Mr Pump, Going Postal (Terry Pratchett) I'm very glad to see the different models of banking are gaining ground today, and that the Banks were given a wake up call.
A G (2 days ago)
Ever wonder why a bank is called a bank? River banks contain, direct, and control the flow or current of the water. Pretty simple. Wherever the bank of the river goes, so goes the current. The bank contains the current or flow.
SPHEX 1 (2 days ago)
lol paper good for a fire! if you stop believing in money or we all try to take it out at the same time GAMEOVER!
Mac Canma (2 days ago)
Opis i naslov na Hrvatskom ???? Svaka čast ❤️👌👍
BIMAL KN (2 days ago)
"And stop the bank from going bankrupt" 3. 18 ha haa!
cataphracts123 (2 days ago)
In a brief play as devil's advocate here, the big banks before the 2008 bailout didn't make risky loans in the early 00's apropos of nothing. They were encouraged to by government programs attempting to increase US home ownership and threatened with fines if they did not. Also, it was a moderate economic boom period and most US citizens were making riskier investments and making more frivolous consumption spending too.
Marc T (3 days ago)
This video is wrong. Not only is it wrong but it fails to explain anything of substance as to how money and banking actually work, or why they were screwed up in the past, or why they are so screwed up now.
Neila Dandy (3 days ago)
Using a Portal Gun to transport money. Wow. Just don’t look at the operational end of the device.
Jarallah Al-Oraini (3 days ago)
FUCK JASON BOND
Daniel Holowaty (3 days ago)
I thought the video is going to be in German.
djdos83 (4 days ago)
This is BS!, fractional reserve not mentioned once, this is NOT how banking works this is how most people think banking works
Hanane BOUCHOUKH (7 days ago)
I think this is a really simplified vision of the banking system. It can not be summarised into receiving money and lending it at a higher interest rate. However it can always be helpful for giving someone a basic definition of a bank and an idea about the subprimes crisis. In fact, a bank lends out ways more funds than what it receives, so funds it does not own. It is called the fractionnal-reserve banking.
meme machine (9 days ago)
Oof its spooky that the tittle aint english
KickingJoub (9 days ago)
Why is this video's title and description translated for me all of a sudden?
Slam Jackson (10 days ago)
We don't really need banks anymore. Seriously. What exactly besides waste trillions on paper trails do they do that a person in this day in age couldn't? Store money? They do that electronically. Give out loans? we get enough billionaires already to do that stuff. So what exactly do banks do besides charge us fees for taking our cash for a period of time?
Keith Rizzle (10 days ago)
Hey how many ppl do you staff to do all the research for your videos???
aneema chowdhury (11 days ago)
This is brilliant, I am studying banking and this really helped me thank you:)
slok kumar (11 days ago)
Most subscribers than the Google channel in you tube
Nate Mullikin (12 days ago)
How can you discuss banking without describing the absurdity of the fractional reserve process?
domo walsh (15 days ago)
When 1 family owned more then 80% of the world wealth we all know the games rigged
Carl Johnson (15 days ago)
i have a trick lets say that 1000 people deposte money on your bank 1....... 2000 $ 2.........3800$ 3.........4000$ 4..........2000$ ...... ........... ............... and now i take 4000$ from the third guy and spend it on my self when he come and ask for money i give him from the others money and when the others came i give them from the other it can't be spotted only if they all come and ask for money at the same time if you do it back in 10th century no one will discover this 😎 I was born in a wrong era
Muhammed Eizzat (15 days ago)
Just imagine. What if one day the usury system will be completely destroyed in our the world. Charity-based system will be flurished on that day. In the future, any charity-based company will be so financially well off til they don't need charity, they give charity. And what if on that day any company implemented usury collapses and will be unstable, till they need to start to practice the charity system on their company to ensure their company restabtablized. On that day, any debt transaction will not be allowed. It's possible. We can do that. It happened throughout history.
bryce knight (16 days ago)
the international banking system is an enigma wrapped in an egg mcmuffin
Capitalism is key (19 days ago)
Why is there no mention of the FED or Central banks setting interest rates artificially low??? Hmmmm... i wonder...
Capitalism is key (16 days ago)
+Wojtek The Bear Keynesian through and through I think this is kind of futile but I stand by what I've said. We'll see what happens, but the petrodollar's days are numbered and its ordinary, honest folks who'll suffer. People who made wealth honestly and intelligently. It's sad because when it did come crashing down, the market and capitalism will be blamed as always and crooks in Government will get away with cushy pensions...
Wojtek The Bear (16 days ago)
I've never used Discord and don't care much for an in depth conversation on this mainly because there's not much to converse about, but you should really look up what inflation is before you make such a bold claim like that central banks create it. As shown by the Fisher Equation: MV=PT or, in other words, the monetary supply times the velocity of money (how quickly it changes hands), equals the price level times the volume of goods being sold. As the volume of goods remains constant in the short run, this is typically simplified to say money supply times velocity of money equals inflation. Of the two, the Federal Reserve has influence over both, but doesn't directly control either. Thanks to fractional reserve banking, much of the money supply is directly controlled by commercial banks (not a bad thing). Only a small portion of it was printed by the Federal Reserve. They can influence the money supply by setting a lower or higher required reserve ratio, but even this is only a constraint, nothing more. In other words, if the Fed requires that instead of being forced to hold 10% of all deposits as reserves, banks have to hold 15%, this wouldn't affect banks that have already been holding that amount as reserves. This is what happened directly following the 2008 recession. Banks, facing a lot of uncertainty, were unwilling to invest a lot, so held a lot of their deposits as reserves, so changing the required reserves ratio wouldn't change anything for them. Then there's the velocity of money, or how quickly money changes hands. A good indicator of this is consumer confidence. If consumer confidence is high, there is a lot of economic activity, so money changes hands faster, causing inflation. If consumer confidence is low, economic activity slows and you get disinflation, possibly even deflation. Besides encouraging banks to invest, thereby increasing the ease at which consumers can get money, the Fed has no way of influencing this. Beyond that, the central bank reacting to unemployment and inflation is inherently a market phenomenon as unemployment and inflation are determined by market activity. It's the firm's choice whether to hire people. It's the consumer's choice whether to use their money or save it for later. These are market decisions that can have a serious impact on both unemployment and inflation, making them market phenomenon. Finally, it is important to note that the Federal Reserve pursued a pretty aggressive policy in terms of raising interest rates. It might not look that way to the layman, but that's only interest rates don't typically fluctuate a whole low. This is mainly due to the effects of the interest rate not being felt until months after the initial change, so economists and economics experts don't know if the markets will respond well to a change in the interest rate until months afterward. Because of this, they usually don't make major changes to it, and make sure the changes they do make aren't detrimental to the economy before making the change more extreme. The US was also just coming out a recession during the time in the Tech Bubble, so obviously interest rates were going to be low.
Capitalism is key (16 days ago)
+Wojtek The Bear I think you overestimate what Central Bank banks can actually do and underestimate their tendency to make matters worse. Again, a YouTube comments section ain't the best place for a discussion on the economy so I'll extend the offer of a chat in discord or some other site for a more in depth conversation. I would still hold however that the FED or Central Bank reacting to unemployment is not a market phenomenon. When the Fed lends out to other banks at 1% that encourages bad investments as we saw in 2008 with all those terrible loans that banking was built on. The Fed don't control inflation, they create it. There is an expansion of credit at the start of a boom, I can even see that in my own country. This new credit is confused for actual savings, for actual funds, but it's just bad debt and inflation that they are lending. It's not sound money, in any sense of the term.
Wojtek The Bear (16 days ago)
Because the central bank determines this through market activity. Mainly the inflation and unemployment rates. If the central bank decides that inflation is too high or unemployment too low (which can happen and is a sign of an overheating economy), they have the ability to raise interest rates, among other things, to curb this overheating. No central bank arbitrarily decides to mess with the interest rate as that only creates uncertainty, which is horrible for markets. Oh, and the Fed doesn't directly control the market interest rate. They only directly control the rate at which they loan to commercial banks, called the discount rate, which they use to influence the rate at which banks charge each other, known as the Federal Funds Rate (the name makes it counterintuitive). The market rate is a derivative of these. Doesn't change the core argument, but it's an important distinction.
Nooby Noob (6 days ago)
I saw the tardis at the time when the coins shot out of the second house 3:40 It was btw the 5th one out of the 8 coins, which one was turned into a really tiny tardis. 5:47 Make your money matter *With a dog that looked kind of funny tho.*
Rebecca Poplewski (20 days ago)
Banks are rich because they socialise losses and privatise profits.
Wojtek The Bear (16 days ago)
Except they don't. Banks often fail. One only needs to look at the failed bank list given by the FDIC to see that.
Teacat Hope (20 days ago)
I read the title as "barking explained"
MARIO'S IMPOSTOR (22 days ago)
STILL MAKES NO SENSE THE MONEY IS BEING PRINTED OUT OF THIN AIR BACKED UP BY NOTHING LOL
MARIO'S IMPOSTOR (16 days ago)
GOLD? IT IS STILL BULL SHIT. IF I WAS A HEAD WORKER AT THE ENGRAVING AND PRINTING I WOULD BE LIKE "FUCK THIS I AM GOING TO PRINT MY OWN UNLIMITED AMOUNT OF MONEY" LOL
Wojtek The Bear (16 days ago)
Because apparently attaching our currency to some yellow rock with no intrinsic value made it all the better?
Mike Fleming (22 days ago)
No. Banks are not intermediaries. It's double-entry book-keeping. When a bank makes a loan it adds an entry to the ledger in the assets column, which is the amount of money that the customer owes the bank. And it makes a corresponding entry in the liabilities column, which is the amount it owes the customer (the deposit). ie. loans create deposits. Not the other way round. When was the last time that a bank made a loan that reduced the amount of money you have in your account? Or anyone has in their account? Think about it.
Wojtek The Bear (16 days ago)
What the fuck? You don't know what fractional reserve banking or double-entry bookkeeping are, do you? Double-entry bookkeeping just means that both sides of the accounting equation: assets=liabilities+equity must balance out. Equity being the profits of a company and the valuation of the company's shares. Why you think this proves that loans create deposits is beyond me. The entries are updated at the same time. If a take out a loan for $100, I update my accounts payable, a liability, and my cash, an asset, at the same time. Otherwise the sides wouldn't be equal. Beyond that, the accounting is the whole reason banks DON'T don't debit your account. They know not everyone's going to come clamoring for their money all at once, so they only need to keep a portion of it on hand at any given time for those that want to make a withdrawal. The rest they are free to loan out. So, while Joe Schmoe might have $100 with Bank of America, Bank of America didn't keep his entire $100. They loaned most of it out. That being said, he can still withdraw his money at any time, the money would just come from the reserves the bank holds made up of everyone's money, not just his.
emmanuel urama (22 days ago)
KURZEGESAGT IS THE BEST CHANNEL ON YOUTUBE
Drive With me (22 days ago)
Why in American video sardinia don’t fuckin exist?whats your problem about geography stupid englishman
Mr Peruna (24 days ago)
Ok Billion=trillion
Shannon Jones (27 days ago)
account 345687416 password"peas and carrots"
patrick conejovey (27 days ago)
5:10 The mythical potato salad
Bike Vids (27 days ago)
1. Keep people poor. 2. Keep people in debt.
Wojtek The Bear (25 days ago)
Hello, Mr. Conspiracy Theorist! You do realize a stable line of credit is one of the largest ways to help poor people, and getting rid of banking institutions would only force them to go to more predatory lenders, which is 100 times worse for them. Giving them a stable line of credit is poverty economic 101.
justSTUMBLEDupon (29 days ago)
Not even close to the whole story on banks especially the part where people put money in savings for interest... Do you know most people get .01% on savings? Might as well be nothing. Plus yearly interest eats up what's left
Wojtek The Bear (25 days ago)
Yearly interest? You mean inflation? True, the interest on savings is low, and inflation does it all of it up (and more!), but you know what's worse than earning .01% interest? Earning 0%, which is what you get when you just sit on your cash. So, while putting your money in the bank gives you small returns, the returns are still better than your alternatives. Inflation will eat into both either way.
Mr EHEHE (29 days ago)
To get a loan you must first prove you don't need one.
Wojtek The Bear (25 days ago)
No, stop conflating the two! You're being very disingenuous. You get a loan because you need a short term influx of cash for something, an investment, to hold you over, whatever. Maybe your car broke down so you need $10,000 to buy a new one. The loaning institution on the other hand expects payment in the long term. For a house, this is usually 15-30 years. A car might be 2-8 years. Obviously they want to make sure you will be able to make the minimum payments on the loan during that time span. Why on Earth would a creditor lend you money if they think you can't pay it back?
Mr EHEHE (26 days ago)
By proving you don't need it.
Wojtek The Bear (29 days ago)
No, to get a loan you first must prove that you are capable of paying it back. Huge difference.
I hate bankers
Wojtek The Bear (29 days ago)
k.
36254518 36254518 (1 month ago)
this video is terrible. You didnt explain how banks give 0 interest loans to government where they print money to oblivion, and how money is backed by nothing, which makes it just a number on the screen.
Wojtek The Bear (29 days ago)
That's because saying "banks" give anything to the government is ludicrous. First, only one entity is allowed to print money and that's the Bureau of Engraving and Printing within the US Treasury. Second, the only way governments like the United States are lent money is through the buying and selling of Us Treasury bonds, which is once again handled by the US Treasury, not a bank. Finally, money doesn't need to be backed by shit. You realize gold, which once backed money, has next to no inherent value, right? And yet the international system has yet to collapse.
AdamFra (1 month ago)
Banks just want a small loan of a million dollars [or pounds, if you're in the UK like me]
Arbaaz Atar (1 month ago)
Didn't get a bit... I think I can understand only science videos
Uri Nation (1 month ago)
You missed “bank capital ratio”, where the real risk lies.
R2d R2D (1 month ago)
what's your program that u use to make the vedio
Tal Ionescu (1 month ago)
I'm a Jew, and I didn't understand this. Is there something broken with me ?
No Copyright Music (1 month ago)
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Ronald Coen (1 month ago)
I over ate
Leung Silavong (1 month ago)
👉🏻🍎👍🏻
Leung Silavong (1 month ago)
👉🏻🤪
Ralph Serr (1 month ago)
1 minute in and I call bullshit. The word "bank" didn't come from the italian word for bench. We live in a world ruled by Maritime Law. The word "bank" comes from "bank" as in the "sea bank". Seal Disbarment Bail bond Discharge Court You account has been frozen Loan sharks Deposit Floating your company CitizenSHIP memberSHIP BErth certificate Friendship Partnershop Fellowshiñ Battleship Ambassadorship And every word that ends in ship We live on land but are ruled by the laws of the sea. When you enter a court room, the judge is the captain and the room is the dock. The building is the ship and you are in the presence of a flsg with a yellow fringe. You are not on homeland. You are in someone else's. And you're in deep shit. The banks are ruled by greedy old fucks who practice maritime law on land.
enemy boat (1 month ago)
The jews.
Ryan Dyjur (1 month ago)
I'm trying to learn how central banking works for an economics course im taking, now I'm in a youtube rabbit hole here trying to wrap my head around how fucked this system is.
Fergal Downes (1 month ago)
Heyo buddy, pretty cool vid that you have here. Will check back again soon.
Psychopathanatic (1 month ago)
My head hurts... understanding banking has never been one of my strengths
Antione Berry (1 month ago)
the rich wealthy men never pick up fat ugly old women.
aribbonatatime (1 month ago)
Wow, a lot of disinformation and half truths in this video. Bad effort in the research department or else someone is paying you for this "rose colored " view of the banking system. Naughty, naughty.
Bálint Csapat (1 month ago)
0:16 "ASS"
Reckless Records (1 month ago)
Do bitcoin
Tenthrone Gaming (1 month ago)
What about crypto currency?
Antione Berry (1 month ago)
there are only three(3)things that matter in men women and money(money wealth and power)🏦💵💰💲.
Bepske Kaatje (1 month ago)
This animating makes my belly tingle
Pat W (1 month ago)
Most of the 25 trillion ain’t even real
fuu (1 month ago)
Such awe!
Samuel Lamoureux (1 month ago)
Honestly, i think that money should end or somthing.... it may change the world into chaos or benefit the world... A bit....
Wojtek The Bear (1 month ago)
The whole reason money was created was to solve the inefficiency caused by a barter-esque economy.
MIRROW (1 month ago)
0:18 ASS
kevindanielpg (1 month ago)
I got a better understanding of economics in this video that in 10 years of formal education. Thanks and greetings from Venezuela guys
Winona Daphne (1 month ago)
...........literally doesnt even explain what credit is and spends the whole video talking mumbo jumbo that makes so sense whatsoever
Matias Losas (1 month ago)
WE are the system, WE have control, not them. Just think about it
Matias Losas (1 month ago)
+Wojtek The Bear i am from latin america from ecuador and I am acting directly tacking shit right on my face, and let me tell you buddy, i am tired of it.
Wojtek The Bear (1 month ago)
Anyway, the whole point of the Fed is to keep it out of the direct influence of politics and the public's whims since, as these recent elections have shown, the people aren't exactly in tune with economics. The Fed being the US' central bank by the way.
Matias Losas (1 month ago)
+Wojtek The Bear yeah but why not just let your thougts lose for a while, it can be fun some times, and if you are lucky may be you get something out of it
Wojtek The Bear (1 month ago)
I don't like to think about conspiracy theories since, you know, they're almost always wrong.
JakotsuTheOne (2 months ago)
Rothschild
Wojtek The Bear (1 month ago)
Are used a lot in dumb conspiracy theories, yes.
Nazik Adam (2 months ago)
Interest being very common is a sign of doomsday.
Wojtek The Bear (1 month ago)
In Europe, yeah. Every ruler had their court "Jew" and it was common for people to seek out Jews to get loans from. Heck, many Christians disobeyed the church and did it. This is also where many of the Jew conspiracies stem from. Since Jews were oftentimes forced to become moneylenders during the Middle Ages as the Catholic church forbade usury.
Nazik Adam (1 month ago)
Wojtek The Bear was it that common though? And was it common everywhere
Wojtek The Bear (1 month ago)
It was common even in the Middle Ages.....
Antonio Farigu (2 months ago)
I really liked this channel until I watched this utter bullshit
Harly The Gamer (2 months ago)
anyone else notice that youtube is giving you 2 adds? I think they figured out how to fix the adpocolipse without fixing it
Cislord SoyBlue (2 months ago)
Has anyone ever tried robbing a central bank?
Joe Vaccaro (2 months ago)
Love your videos keep it out
Raenir Salazar (2 months ago)
I'd like to point out that WARS helped drive a lot of innovation in the finance industry, particularly the British Empire and France during the 1600s.
Asem Shahin (2 months ago)
i love all these TARDISes scattered across most your videos
Vorn Ame (2 months ago)
1:25 Fractional reserve unmentioned. Also banks do not take your money and lend it to others. They get it from central bank, which inturn can create it out of nothing.
Wojtek The Bear (1 month ago)
This is so wrong it's not even funny. Banks rarely get money from a central bank. They only due this when they borrow directly from the central bank, which only happens when they're in huge financial trouble, or when they sell assets to the Federal Reserve. 99% of bank deposits come from individuals and companies depositing money into them. Actually, a lot of this money goes to the Federal Reserve since member banks are required to keep some of their money in reserve at their local Federal Reserve branch. So really its the exact opposite of what you claim.
Mr.SomeDonkus (2 months ago)
I never knew why I my parents always told me to only use credit unions, but it definitely makes sense now.
Cyril Bianca (2 months ago)
I was referred to Tecyberworld at gmail via QUORA. Apart from having the highest reviews on QUORA, I also came across several testimonies via Google +, so I had more confidence to contact them. Lo and behold, I was already seeing results under 48 hours as I was thoroughly advised and guided through the whole process. Teecyberworld at gmail I can def recommend... Be careful of self proclaimed hackers.
Kant Touch This (2 months ago)
This becomes wrong very quickly
Jake Glassmoyer (2 months ago)
Banks all suck. They don't make money anymore on sound investment in people or communities. They make money off of outrageous fees and surcharges in very uncreative ways. BOA charges $8 to cash a check drawn off their own accounts! Go to BOA with a BOA check and you get charged to cash it. If for some dumb reason you are an account holder, they hold the check for at least a day before letting you access the cash. They aren't even shy anymore about their shit policies and have gotten so arrogant, they don't even try to hide their garbage. They charge you $2 at an ATM and you get fees when you don't deposit enough in a month to satisfy their greed. Banks lost sight of what they used to be....and if anyone keeps a dime at Wells Fargo....get out from under a rock and understand you are banking with crooks, liars and thieves. Banking greed is the root of all financial problems in the US and it's not going to change anytime soon. Since you have no freedom of choice and have to use some sort of institution, find a credit union but they haven't been so honest lately either. Time to go back to putting money in a safe next to my AR-15.
Val' (2 months ago)
Wow, I didn't thought a channel like yours would make that mistake but.. Bank don't use their client's money to give it to others who needs it! That may have been true in the past, but since roughly WW2, bank create money by litteraly pushing a button when someon come to see them. This is how inflation is created : credit is some freshly "made" money that can be spend, but will get destroyed when the credit is payed. However, the interest (which is the gain for the bank) is the true inflation. Once more, I can not insist enough on the fact the money we put in the bank are not lended to other people, but instead used to buy stuff like actions and obligations which makes our interest. Despite this gross error, you're a very good and infirmative channel, keep it up!
Kshitij Gupta (2 months ago)
You are so wrong the fractional reserve lending is still in place.. if banks could create money the way you believe by hitting a mere button then there would have been no subprime crisis in the US and EU. The banks capable of creating money are only and only The Central Banks. Yes, central banks can create money by hitting a button but none others.
Kant Touch This (2 months ago)
Val' interest on bank loans isnt inflationary
Baim Wrong (2 months ago)
thank you man
roninpainbringer (2 months ago)
PYRAMID SCHEME... THAT IS BANKING IN A NUTSHELL
FintechZone (2 months ago)
Online banking services Online services grant you the ability to supervise your business more economically and efficiently.
Kshitij Gupta (2 months ago)
Government : "Who needs a bank when i have the Printer"???
Kshitij Gupta (2 months ago)
Btw whom are you speaking on behalf of?? The Government???? You should speak on behalf of who you really are...My guess is A normal,mortal Citizen... haha
Kshitij Gupta (2 months ago)
The World needs to move back to a Gold Standard quickly or else their is no stop to government manipulation of almost every financial instrument be it Forex,Bonds,Gold,Currency,Equities and the rest of those. Unchecked manipulation by governments round the world will one day prove fatal for the governments themselves. So it's in the best interests of those in the Governments too to quickly readopt a gold standard.
Wojtek The Bear (2 months ago)
….That's why we have central banks.
Deff Pluto (2 months ago)
yeah Buy Bitcoin
Marcos Garcia (2 months ago)
Sadly those assholes rule the world. Don't use banks or try to use the the least possible you have to see that they only get money for giving out money to other people. And ass soon as your government/economy/country/country is fucked up all your money is lost. Get everything somewhere under your house and invest in good house protection and you are done fore and out of that crappy system.
Wojtek The Bear (2 months ago)
Uh, you realize the economy has hit major downturns numerous times and the banking system didn't utterly collapse, right?
Garret Andreas (2 months ago)
No mention of the Templars being the ones who started what later turned into banks.
Dan Harris (2 months ago)
Kurzgesagt- In a Nutshell, you really need a fiat curreny video. That's what I thought this was going to cover that but no mention of that here. It is probably the most significant part of banking and why banking these days is theft and holding back society. Love your work. Thank you!
Wojtek The Bear (2 months ago)
Banking isn't theft and doesn't hold back society. Ignoring that though, banking isn't a monetary system. It is an intermediary between savers and borrowers. Sure, it influences a nation's monetary system, but it isn't the whole of it.
CaveGame (2 months ago)
Mario birds
Mary Ann Cabrera (2 months ago)
Please make a video about stock exchange 😊
ALBERT EINSTEIN (2 months ago)
BANKING IS NOT SOMETHING THAT "MUST" BE DONE. ACTUALLY THE ELIMINATION OF CURRENCY ON A FIAT SCALE, NEEDS TO BE UNDERSTOOD BY EVERYONE WHO WATCHES THIS VIDEO, ALONG WITH THE REST OF THE PLANET. FRACTIONAL RESERVE BANKING IS A SCAM. A HOUSE OF CARDS. AND IT WILL! EVAPORATE THE VALUE OF EVERY FEDERAL RESERVE NOTE IN A MATTER OF TIME. IT IS A MATHEMATICAL CERTAINTY. THE NATURAL RESOURCES OF THIS PLANET NEED TO BE EQUALLY DISTRIBUTED TO ALL MEMBERS OF THE HUMAN FAMILY AS WELL AS THE REST OF ORGANIC ORGANISMS HERE WITH US. THIS IS THE ONLY WAY WE WILL SURVIVE LONG ENOUGH TO BECOME A TYPE TWO CIVILIZATION.
Wojtek The Bear (2 months ago)
Who knew Albert Einstein was an insane conspiracy theorist.....
Blaze It Ken (2 months ago)
Banks lend by crediting accounts. They issue their own deposit liabilities. Banks use central bank reserves to settle transactions on behalf of depositors. Banks net transactions we make against each other to minimize the need for reserves. Banks then lend any excess reserves/surplus reserves (not every country has reserve requirements) to each other. This redistributes reserves so that 1 dollar of reserves can be used to settle many dollars over and over again. Bank deposits are liabilities of the issuing bank. When depositors deposit cash they receive a claim on a bank that can be either redeemed for cash or used to make a payment with a check or credit card. Bank loan example Bank: Assets +100 loan Liabilities +100 deposit Central Banks cannot simultaneously control the money supply and target interest rates. Central Banks use the quantity of reserves to peg short term interest rates for interbank loans. Reserve requirements are nowadays just an extension of a central banks toolkit to target interest rates. (federal reserve system it's purposes and functions 2016) While I wouldn't go as far as to claim that all money is debt you could say most of it is. (money aggregates like M2)
UncontrollableATroll (2 months ago)
Banking is a scam. Banks create money out of nothing and issue it as debt, charge interest on it so you have to borrow more in order to pay the interest because they don't create the money for the future interest payments, and when money is created, it steals it's value for the existing money supply where our savings are.
Wojtek The Bear (2 months ago)
No, that's in no way true. Bank's don't create money out of thin air. They lend out money that's been deposited in them. That's why they're known as financial intermediaries (as they act as an intermediary between savers and spenders), and that's the whole reason fractional reserve banking has its name. Because a fraction of all deposits are kept as reserves in a bank.
NONSTOP LOCS (2 months ago)
Pikachu was cute tho
Walteriglesias.com (2 months ago)
Very misleading video.
Greg Plummer (2 months ago)
yep. its. here. the. governments. around. the. world. wants. to. crash. all. money. around. the. world. and. start. a. one. world. currency. money. this. is. gonna. happen. a. one. world. government. a. one. world. religion. and. a. one. world. money. the. antichrist. the. devil. in. the. flesh. will. have. control. over. every. one. except. the. born. again. christians. were. in. the. end. time. get. saved. today. ask. jesus. to. forgive. you. of. your. sins. and. to. save. your. souls. before. its. to. late. and. dont. take. the. mark. of. the. beast. 666. dont. take. this. microchip. this. might. be. the. mark. of. the. beast. 666. if. you. take. it. gods. holy. word. the. bible. says. if. you. take. the. mark. of. the. beast. 666. you. will. go. to. hell. ill. be. praying. that. jesus. will. save. your. souls. amen
Wojtek The Bear (2 months ago)
Hello, Mr. Conspiracy Theorist!
George Keller (2 months ago)
The problem with banks in the USA is fractional reserve banking. Which has been know to causes lots of problems.
Wojtek The Bear (2 months ago)
First, all banking has used fractional reserve banking since its inception. It's the main way they make a profit. Second, it was a problem before and during the Great Depression, but nearly all of its flaws have been sufficiently handled to the point that, even when we have a major recession like the Financial Crisis in 2008, there aren't any bank runs.
Pesterin Pearson (2 months ago)
Very euro-centric.. Like nothing ever happened in history outside Europe

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