INTRODUCTION
Youtube channel "Naked Economics" was born with the aim of supporting the most basic knowledge, readily understood, the true nature and the most naked of economic concepts abstract terms, but florid everyday you see on books, newspapers and radio, television and on the Internet that most people do not understand the true nature of what they are. Today, I will release the first episode titled "What is money".
The contents of this first episode, we will explore the concept of money is what? Who makes money? And they control our lives like? Part 1 - What is money? Every day, we hear the news reports about the economy - finance relentlessly throughout the day but not everyone understands view and understand the nature of the concepts, terminology in the field of economics - finance. In life everyday life, we often have to use cash. We need money to buy food, clothes and other things in life in service. To get the money, we spend most of the time of working life in the company now. We save money to buy land, build a house, a provision for sickness, as they age. Everyone in society is dependent on the coin but most of us are unaware of the nature and method of operation of the coin looks like. Why are people so much money? Why have the people there yet penniless? Why only a few people rich, while most people are poor? Whether we have worked hard all their lives but still grappling with the funds to pay for daily living activities. First of all, we learn concept: What is money? Understood in a simple way least, money is a paper commitment (promise) of the issuer as "who owns this paper is intended to be exchanged for a certain quantity of goods corresponding to the number printed on the This paper ". The reason the owners agree to exchange goods commodity (use value) of paper commitments alone take on because they believe in the promise of the release of this paper is that they can convert paper commitments for goods when needed. Themselves the commitment paper not worth anything if you promise not to be executed and the confidence of people collapsed Thus, the role of the issuer money (sheet commitments) is very important. It affects economic stability - the country's political and economic whole financial system in the world. Today, the concept of money consists of banknotes and the amounts are not recorded on paper money books and computers Who has the right to create money? All the money circulating in our economy, 95% is due to the private banking production, the remaining 5% of the banking system The central line of the country. As a magician genius, the bank may call processing from nothing (nothing at all) the money could be spent only by way of a loan to another person. Why banks have such rights? Why were they not arrested? Because they are legally recognized, allowing them the right to do so. For clarity, I will take the example illustrated as follows: Do not alter the nature of the problem, assuming: - The amount of money saved is fixed (at time of review) - The entire economy only one bank - With the economy operating normally, banks tend to profit maximization ie they will want to lend to the maximum extent possible S: Total amount pens currency was created (money from the air) U: The amount of own bank deposits of the population + t: is the required reserves by central bank regulations (measured in units of%, usually t <10%) to the maximum profit, banks will want to lend to the maximum. They will get the money deposited in banks U central as mandatory reserves. When that amount of money banks can provide loans will be: S = U / t If t = 10%, the amount can lend 10 times the actual amount initially If t = 5%, the amount may lend 20 times the actual amount initially If t = 3% of the loan amount may be more than 33 times the actual amount initially If t = 1% of the loan amount may be 100 times the actual cash originally When people borrow to spend, the amount of S is injected into the system to increase the money supply in the economy. Since bank loans require interest rate should want to pay any loan, the borrower must earn more than the loan, the difference is payable bank lending rates. Upon the repayment of the bank, the borrower must pay the original loan principal + interest on this amount to the bank. Therefore profits of banks to lend would be: S + interest rate. The total profit of the banking business will be the sum of the following amounts: - Interest rates of required reserve funds: t ' - Proceeds from the air: S - Interest of sums S: s' Here you have to understand why the banks are so rich. And the borrower must always plowing debt without debt lifelong Banks have control of our lives like? So the money is used to pay interest to the banks come from? It comes from the amount available in the circulation before lending transactions incurred. If there is not more money into circulation, the amount of money in circulation will be reduced over time, reduce the commodity price (increase value for money - jargon is called deflation). Due to the amount of money scarce, people travel more and more difficult to make money to pay debts to banks, leading to more and more people can not afford to pay the debt and bankruptcy. The borrower usually companies now. When they go bankrupt, workers lost their jobs, banks can not collect debt also leads to bankruptcy, economic stagnation, crisis To solve the above problems, is actually trying to delay, prolong happen Between the crisis, banks are required to increase the supply of money to, ie they continually have to borrow new loans as existing loans are paid. To keep prices stable, they must provide a minimum amount equal to the portion of interest that the borrower must pay to the bank, but generally the higher the money supply often just to increase profits for both banks to economy has a little inflation. When prices rose a bit to encourage enterprises to expand production and create more jobs. Therefore the money supply over time will grow and grow, leading to interest rate the borrower must pay to the bank is also growing. Currencies increasingly devalued. Salaries paid to employees increased very little over time, failed to keep the devaluation of the currency. That means that the value of real wages increasingly diminished. Instead of being paid a reasonable wage, workers are encouraged to live by those loans. At some point, the borrower simultaneously inability to repay more and bankruptcy. Banks tighten lending fear, money supply fell sharply as lenders make it more difficult, the economic crisis occurred. Now banks began confiscating the collateral of the borrower such as land, houses, cars, buildings and goods .... There has been a transformation from virtual money into real assets S is land, houses, cars and goods. Bank accounts are not the property of the people openly, legally. As banks go bankrupt, to avoid financial system collapse, the government has shelled public money to save bankrupt banks through the bailout package by hundreds of billions of dollars of tax money People or simply printing more money, which reduces the value of the dollar in the pockets of the people. A pickpocket gently, softly that people call it inflation. So when a crisis occurs, material possessions really be changed ownership from the public to the bank. The nature of the current financial system is thus the economic crisis is inevitable will happen, is something inevitable. When the government resolved the crisis began a new economic cycle and that repeated continuously for hundreds of years the history of the financial system. They know for sure that a crisis will occur, but not sure that time to happen to be able to predict. Defects of the economic system - financial nature that nature why people do not change but still leave it existed hundreds of years. It is in the interests of a minority group of bankers, the world's richest people. With his wealth, they influence policies and economic laws of government. They want to keep this system forever, because just through the crisis is cyclical, they will become richer from real plunder of public assets. To learn more about system Modern banking activities like, invite you to watch the next episode in the nearest time Episode 2 - The
đang được dịch, vui lòng đợi..