12 year old Victoria Grant explains why her homeland Canada and most of the world are in debt

[Tony_FLADEM]

&feature=youtu.be

[jerseyjack]

1. Connect this with "State Bank of North Dakota"

and get an understand of how North Dakota's finances enjoy more stability than those of other states.

[Atypical Liberal]

2. Going back to capital-in-hand.

I get what the girl is saying, but I'm not sure I buy it entirely.

Basically what the banks are doing is this:

You give out $10 in loans. If the loans are repaid, you will get back $50.

So you have a potential future income of $40.

That potential future income has value to other people who believe that it is likely the debts will be repaid. You can sell it, or use it as collateral.

Yes, there is a risk that the debts won't be repaid, and that there is no value in the loans. And yes, being in debt can feel like slavery and it definitely limits your options.

But as long as all the transactions are voluntary and transparent, I don't see the problem.

I think the biggest problem with the banking system is not the transactions, it's that they are buying policies that favor them financially.

[RC]

3. This should help you understand.

http://www.democraticunderground.com/101630457#post4

[jonthebru]

4. What you said and

We all must know the fact that all our money is borrowed from the "central bank." The value of the cash or debt is perceived value that is entirely "collateral." You, your ability to pay taxes and buy thingamabobs are part of the "collateral." Even the government borrows money, it gave up the creating of money years ago. Our country (USA) has been around this wheel a few times. A really good video is "The Secret Of Oz." That video is a real education on the money issue.
And also know we can't go to a "gold standard" because there is simply not enough gold. The equity model has been used for so long that our perceived worth is much larger than the mineral value of gold.
The Secret Of Oz.

Basically, all you know is not really real. Of put another way "All you know is wrong."
The key is getting money out of the political campaigns and creating a democracy that involves the citizen. People have to stay awake and be engaged. Ethics of our elected officials is a big deal. Dirty politics turns people off and they don't engage and show up to vote. Sadly, negative ads work.