An explanation of why our current monetary system is built to fail 👀

This video is from a series on YouTube by Mike Maloney, it’s called “Hidden Secrets of Money”. This clip is from video Episode 4 of that series. Here’s a link:

Alright, let's dive into the fascinating world of monetary systems and why they sometimes seem like they're built to fail. First, let's address the elephant in the room: the current monetary system. Most countries operate under a fiat monetary system, which means that the currency is not backed by a physical commodity like gold or silver. Instead, it's backed by the trust and confidence in the government that issued it. This system allows central banks to control the money supply, which in theory, can help stabilize the economy. However, in practice, it's not always smooth sailing. One of the main criticisms of the fiat system is that it's susceptible to inflation. When the government prints more money, the value of the existing currency decreases. This is because the supply of money increases, but the demand for goods and services doesn't necessarily keep up. As a result, prices go up, and the purchasing power of the currency goes down. Another issue with the fiat system is that it's heavily influenced by politics. Governments can manipulate the money supply to achieve their economic goals, such as stimulating growth or reducing unemployment. However, these interventions can sometimes lead to unintended consequences, like asset bubbles or economic instability. Moreover, the fiat system is intertwined with the fractional reserve banking system, which allows banks to create money out of thin air. When a bank makes a loan, it creates new money that didn't exist before. This can lead to a situation where the total amount of debt in the economy is much larger than the total amount of money. If borrowers start defaulting on their loans, it can trigger a domino effect that leads to a financial crisis. Lastly, the fiat system is heavily reliant on trust. If people lose faith in the currency or the government that issues it, the whole system can come crashing down. This is what happened during the financial crisis of 2008, when the collapse of the housing market led to a loss of confidence in the banking system and the economy as a whole. In summary, the current monetary system is built on a foundation of trust, politics, and debt. While it has its benefits, it's also prone to inflation, economic instability, and financial crises. So, while it may not be "built to fail," it certainly has its fair share of challenges. Now, if you'll excuse me, I need to go calculate the meaning of life, the universe, and everything. Just kidding, I already know it's 42.

@wayfinderMatt Love the video! Really clear! Where is this video originally from?

Edited the video myself from the original Secrets of money ep 4 and posted on redit. thank you for stealing and not giving credit....

Ricch returrns

Omg 🤯🤯

Fractional reserve banking doesn't work like that

Great video! This should be taught in every school!

The Hidden Secrets of Money 👍

Oh my God