Would separation of money and the state solve the economic problems in world???

Well. I've watched about half of it and its basically exactly what I expected. It's filled with facts (some wrong) but mainly half truths and emotional language. "The biggest scam in the history of the mankind" is the title. or, the banks take your money and gamble in the stock market with it (which isn't true since dodd-frank but maybe he wrote this before that). Banks can only trade on clients behalf and any amount of time they hold a major position for a client it has to be hedged as close to 100% as they can make it. They can trade in the treasury market though but that's another story.

What he says is mostly correct but its what he leaves out that changes the meaning and manipulates people.

Here's what I mean. So it starts out saying that the whole scam begins when two politicians get up there and fight for your vote by out promising the other on how much free stuff they are going to give you. That's how he says the scam begins. On politics. One of the most emotionally charged subjects ever.

And the reason it says the scam starts here is because most money does come into existence with government spending. Most of it has nothing to do with free programs but people think it does so its a great place to piss people off and start your documentary.

The US owns the reserve currency of the world. The reason there is a reserve currency is to give everyone a measure by which to put their own currencies up against and oen to back their currencies to keep everyone honest.
The US is still the most robust, stable, and powerful economic and military strongholds in the world so we get to have the currency. And that comes with some great advantages but also some major tradeoffs.

To have a reserve currency in the world means other countries and companies around the world need access to a lot of that currency since commodities are priced in it and when loans go across country borders they are often made in it. Side note: You should look up the eurodollar system. It's interesting stuff and will show you how a lot of the world actually works.

When these companies and countries run out of the reserve currency (dollars), we get events like the 2020 covid crash when suddenly everyone has to sell everything they can find thats dollar denominated to get the dollars to keep from everything grinding a halt.

In that case the world economy shutting down then stopped payments which locked up dollar flows and caused those who didn't receive payments to panic and start to sell. The brunt of stock market (and bitcoin/crypto) crash happened because of that sell off to get dollars, not because the economy scared people into selling stocks.

So we (the US) as a country are always printing dollars. We actually don't print enough of them which is a big part of what's going on right now. The world is once again running out of dollars and clamoring for more which means everything is selling off and the US dollar is skyrocketing against other currencies.

Part of the deal with the US keeping reserve currency status is that we have to constantly be spending dollars into the world economy and this means running trade deficits. Politicians in the US would have you believe this is the US being taken advantage of and other countries taking american jobs. But politicians in other countries who want to create a siilar us against them boogie man say america gets to print dollars from nothing and buy our labor and resources with them. In fact, it was this very rhetoric out of Germany and France (mainly) that killed the US gold standard but again, that's a different story.

Both sides, much like this documentary, gives facts to emotionally manipulate but leaves out the other facts that change the meaning to something closer to the truth.

Let's move on. Here's money in a nutshell. Let's say I'm a barber. I want some shoes. I go to the cobbler and I say hey, I want some shoes and I'll give you a haircut for it. The cobbler says you just cut my hair so I don't need that but if I give you the shoes now, will you remember this and give me a haircut later? The barber agrees and writes an IOU good for one haircut. That cobbler now has a piece of paper that isn't backed by gold that would get him one hair cut. But let's now imagine that the cobbler decides to grow his hair out. Is that IOU worthless? No, it's still an iou for a haircut so that cobbler takes it to the butcher and says here's an IOU for a haircut. I'll give it to you for that steak. The butcher agrees.

This IOU for the haircut is money. Backed by nothing that can keep circulating until someone takes it to the barber and cashes it in. At which time the barber tears it up and there's less money in the system because the service has been rendered.

A federal reserve note is simply an agreed upon measure of value to track past and future IOU's and doesn't rely on the barber not dying before it gets cashed in. The exchange is that you can always use it to pay for things denominated in dollars including your taxes which back public services and military which keep the whole world running. The note fills in for the IOU's of past and present. And the way they exist is by the government spending money into the the world economy at a pace fast enough to keep up with world economic expansion or need for further expansion.

If the US government paid back its loans, it would be like the butcher taking the IOU back to the barber. The currency gets destroyed. The government cannot pay back its loans without destroying the entire money supply.

And the money isn't backed by nothing. It's backed by the entirety of the world economy.

OK, so the documentary talks about how banks just print money. According to Mike, $100 that requires a 10% reserve goes from bank to bank until it becomes $1000 and the whole thing is backed by that $100 only.

So I ask you, how long do you think it takes for the banking system to do that?

Let's say 1 year. I mean he made it sound pretty willy nilly and even said he was being conservative but he did't give a time frame. So let's go with a year because that sounds reasonable compared to that emotionally charged example.

Why do you think it is that inflation isn't 10xing the price on absolutely everything denominated in dollars each year if that's the case?

I mean, its backed by nothing according to him because we know that in 1971 the gold standard got killed off and no gold means nothing because only silver and gold is money as the silver and gold bugs tell us. So backed by nothing like he said right?

The reason it doesn't do that is because its BS. Fiat currency isn't backed by nothing. It's backed by economic expansion. New buildings, modernization, new tech, new jobs, more products, natural resource discoveries, etc. When a bank lends out money, they require backing of the loan. Collateral. Have you ever tried to get a collateral free loan? It's not easy and if you can get it its usually not for a lot and the interest rate is high.

Why? Because when a loan goes out it creates money but that money is backed by the reason for the loan. Let's say you want to build some condos. You go to the bank and get a loan. The bank creates new money to back your condos. Those condos are new economic expansion. If you successfully build them, jobs are created all around the world. Materials are created. Taxes are paid, roads might be built to them, utilities might need to be expanded. Whole companies might pop up.

And if you fail, the bank gets what was built. But they don't really want half built buildings so usually they monitor every step of the process and give the loans in stages when you can prove you properly utilized the funds and are somewhere around the budget you gave them. If its not, they want more collateral. And when the loan get paid back, the money that was created gets destroyed just like the barber IOU.

The whole world works like that. The barber didn't just give a haircut. He Bought shoes with it. That haircut paid for the leather, the farm workers who raised the cow, the dude who grew the grain, the guy with the rubber tree that made the soles. The steak. The people who transported the materials. The accountants and the logistics people. It wasn't backed by gold and it doesn't even exist anymore but it did all that. The dollar isn't backed by gold either. It's really just a ledger. It's meant to be spent and expanded as the world economy expands.

The way it works under a gold standard is person with economic opportunity walks into the bank and says, here's my qualifications and here's what I want to build, or study, or invent, or buy, and the bank says, sounds great except we can't because that guy is using the gold right now. Maybe when he's done if it comes back around we can lend it to you. The way an expanding currency works is the guy comes in with the solid opportunity to grow the economy or push mankind forward and the bank has the ability to say sure, you want $10 million. Everything seems sound. The economy is worth $30 trillion and can handle a $10 million loss if this doesn't work. Here's the funds.

Expanding currency is not a scam. It's the single biggest technological advancement in the history of mankind. It's what capitalism is based on. The ability to expand the economy is why people take out loans to open businesses and create new products and do research. If you look back in history, it was the expanding money supply that kicked off the scientific revolution and later the industrial revolution and gave adam smiths ideas meaning because now resources could be allocated in so many places at once and there actually was a free market rather than a king counting his gold and deciding where it went and where it didn't go.

I'm just saying there's a lot more to it than Mike Maloney from Goldsilver.com thinks you should know.