Inconvenient Debt?

[KrazeeStacee]

Anyone seen this yet?

Breaking News | Latest News | Current News - FOXNews.com

I know there's some smart people here that can help me with this. I know Glen Beck is an idiot and I don't want to believe what he says for face value - but I can't seem to find much info that argues against this, intelligently.

Anyone?

The best I could find:

Glen Becks segment “Inconvenient Debt” explained for the propaganda it is… Where Conspiracy and Reality Collide

And I still don't really get it. Then again, I suck at anything having to do with economics.

Thanks.

[ravenguy2000]

I am not much of an economist either but from how I understand what I just read and watched, Beck is fully attributing the increase in money in the system to the printing of money, when the vast majority of that money is created when a bank loans someone money that the bank does not actually have on hand.

So even though that money is not backed by gold, it's just as good as that because we're assuming the lender has gone through reasonable means to make sure they'll be able to go their money back. Otherwise they wouldn't be giving it out, in theory, but now we know all sorts of places were throwing around money they should have known they'd never get back.

Hence, Beck sees all of this money flushed into the system and thinks it's a very bad thing, but according to the other guy we know we'll get $1.20 - $1.50 back for every dollar doled out plus the residual benefits of whatever that money is spent on (ie roads, bridges).

That's as I understand what was in your post but I don't know how much clearer that makes things.

[Nimrod's Son]

Let's please not discount the printing of money.

[duovamp]

Glen Beck just watched Zeitgeist II and now thinks he knows how monetary systems work, isn't that cute? Awwww.

[Thaniel Buckner]

glenn beck is cripplingly stupid and smug at the same time. his fake crying whenever a veteran calls in makes me gag.

F-

[Shawn Osmond]

Originally Posted by KrazeeStacee

And I still don't really get it. Then again, I suck at anything having to do with economics.

Thanks.

You're right, you don't know anything about economics or what Beck was explaining.

Now, an intelligent person would go to Border's and buy a book about how the monetary system works and try to understand it better.

But a psychotic waste of space like you would prefer to just post an article into a forum and then ask some other people who don't know ANYTHING about economics if its true or not.

[Thaniel Buckner]

what would max power do.

[KrazeeStacee]

Originally Posted by ravenguy2000

I am not much of an economist either but from how I understand what I just read and watched, Beck is fully attributing the increase in money in the system to the printing of money, when the vast majority of that money is created when a bank loans someone money that the bank does not actually have on hand.

So even though that money is not backed by gold, it's just as good as that because we're assuming the lender has gone through reasonable means to make sure they'll be able to go their money back. Otherwise they wouldn't be giving it out, in theory, but now we know all sorts of places were throwing around money they should have known they'd never get back.

Hence, Beck sees all of this money flushed into the system and thinks it's a very bad thing, but according to the other guy we know we'll get $1.20 - $1.50 back for every dollar doled out plus the residual benefits of whatever that money is spent on (ie roads, bridges).

That's as I understand what was in your post but I don't know how much clearer that makes things.

Cool thanks. That was pretty much what I gathered, but wasn't sure because it seemed too simple! So really it's just a matter of people like Glen Beck thinking that just because we loan out money as like, promissory notes, that's a bad thing - but he doesn't understand that the way it's supposed to work (not necessarily the way it has worked in the last few years) is that they're supposed to have a lot more security to back it up with...?

A friend of mine posted this and was all "Rebuplican, Democrat, hippy, whatever...you HAVE to see this, we're all gonna die OMG!" So I wanted to tell him he was an idiot, I just didn't have the explanation to back it up. lol Thanks

[Nimrod's Son]

Uh, Beck isn't 100% wrong here you know... you're taking a small thing that he overlooked and using it to deflate the entire piece.

[TicalFSU]

Originally Posted by Nimrod's Son

Uh, Beck isn't 100% wrong here you know... you're taking a small thing that he overlooked and using it to deflate the entire piece.

Agreed. The amount of inflation goin on is mindbogling:



Source: eastcoast economics

[Debaser]

wtf, glenn beck thinks we abandoned the gold standard in the 70's? he's about 60 years late.

corrected by TicalFSU

[Debaser]

The amount of money we print is not the only thing that determines the value of our currency. It's probably not even the most important factor (i.e., trade).

[TicalFSU]

Originally Posted by Debaser

wtf, glenn beck thinks we abandoned the gold standard in the 70's? he's about 60 years late.

Meh, I think he is referring to this

[Debaser]

If you have a thirst for trying to get a grip on the topic, this is a good place to start (if you have an hour to burn):
PBS: THE ASCENT OF MONEY

not really a direct answer to you question, but its an interesting primer on how the system works... I was entertained.

[TicalFSU]

Originally Posted by Debaser

The amount of money we print is not the only thing that determines the value of our currency. It's probably not even the most important factor (i.e., trade).

True but right now we are experiencing a relative decline in trade in conjunction with an enormous amount of dollars being put into circulation. As soon as countries decide to no longer peg the dollar...hyperinflation here we come.

[Debaser]

Originally Posted by TicalFSU

Meh, I think he is referring to this

Ok, I see.

But Beck fails to acknowledge that there is a de facto Bretton Woods system II in effect that is trade based. Which is why the amount of money being printed is not as important as it used to be.

edit: that's not to say that Bretton Woods system II isn't in serious trouble right now because of the current crisis...

[Debaser]

Originally Posted by TicalFSU

True but right now we are experiencing a relative decline in trade in conjunction with an enormous amount of dollars being put into circulation. As soon as countries decide to no longer peg the dollar...hyperinflation here we come.

Yes, but globalization has successfully intertwined our own crisis with the rest of the world. The collapse of the dollar would also collapse the rest of the world's economies. So I don't suspect that countries are anywhere close to abandoning the dollar, unless they are suicidal.

[KrazeeStacee]

Originally Posted by Debaser

If you have a thirst for trying to get a grip on the topic, this is a good place to start (if you have an hour to burn):
PBS: THE ASCENT OF MONEY

not really a direct answer to you question, but its an interesting primer on how the system works... I was entertained.

Cool thanks!