Money makes the World go round………
by Mark Pinder
This film, ‘Money as Debt’ by cartoonist Paul Grignon, is well worth watching, especially in the current context of the European sovereign debt crisis, the near default of the US federal budget and possibility of a Global economic meltdown which increasingly looks to be not so much if, as when.
It explains simply, the basics of fractional reserve banking, how this relates to runs on the banks, and why the nature of lending money and creating debt is only sustainable as long as the world is able to maintain economic growth and service it’s obligations to the global banking and finance industries which then continues to fund that growth, by lending more notional money, who’s value is predicated on the borrowers ability to repay, (or not, in the case of a credit crunch).
It also explains why any notions peddled by politicians as to going green or reducing consumption are empty platitudes, because the current system, can only survive on a model of ever increasing consumption and debt.
Now might be a good time to shift your pension fund investments into tinned food, Rottweiler puppy farms, (futures), and pump-action shotgun makers!!