Clarifying Money: Understanding The Different Layers
When it comes to money, I realize there is a lot of misconception out there. A lot of this stems from the economics profession that spews a lot of misguided principles that were completely invalidated over the years. To make matters worse, people think they understand what is taking place which has them dig in with their viewpoints.
In this video I am going to discuss something you never hear talked about, the different layers of money. I will also share how what people fucks upon has the least impact. Understand how the system truly works allows us to not fall to a lot of what is on social media or the mainstream media.
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Great insight into the three major systems. I like how you differentiate dollars from the euro-dollar settlement system. So much of this is just ledger-based at this point, so might as well make it public on the blockchain. Then we wouldn't have the Pentagon misplacing $3T... oooops?! Where did it go? Certainly not of value to any taxpayers!
Summary:
In this video, Taskmaster discusses the different layers of money and monetary systems in the world today, aiming to clarify misunderstandings around money. He emphasizes the importance of understanding the layers of money, especially in the context of cryptocurrencies and the development of crypto economic systems. Taskmaster breaks down the three main layers of money, starting with the central bank, moving on to commercial banks, and finally discussing the wholesale banking system. He explains the roles and functions of each layer and highlights the misconceptions and complexities surrounding modern monetary systems, particularly in the Euro dollar system. Taskmaster also addresses the challenges faced by the global economy and the limitations of Bitcoin and other cryptocurrencies in addressing underlying monetary issues. He stresses the need for a deeper understanding of the financial systems before attempting to create new monetary solutions.
Detailed Article:
Taskmaster opens the video by stressing the significance of clarifying the layers of money in the world today, stating that understanding this concept is crucial for comprehending both traditional financial systems and emerging crypto economic models. He highlights the fundamental components of a monetary system, which involve accounting, communication, and the ability to settle transactions. Taskmaster asserts that regardless of the form of money, these core elements remain constant.
The discussion then delves into the three main layers of money, beginning with the central bank. Taskmaster explains that central banks primarily create bank notes and engage in quantitative easing by purchasing assets without using legal tender. He elucidates that central bank reserves, which are not legal tender, play a significant role in this process.
Moving on to commercial banks, Taskmaster explains how commercial bank money, in the form of digital currency, influences the money supply through lending activities. He provides an example of how commercial banks generate currency through mortgage transactions, ultimately affecting the money supply without directly involving legal tender.
The video progresses to the wholesale banking system, which includes offshore banking and the Euro dollar system. Taskmaster emphasizes the importance of this system in global trade and economic stability, pointing out its collateral-based nature and the role of assets in facilitating transactions. He highlights the distinction between assets and legal tender, shedding light on the intricate mechanisms of settling transactions in this system.
Taskmaster also critiques the common misconceptions surrounding money creation and central bank policies, debunking myths related to money printing and the role of central banks in influencing the money supply. He underscores the need for a comprehensive understanding of the intricate financial systems before attempting to devise alternative monetary solutions, particularly in the realm of cryptocurrency.
In conclusion, Taskmaster underscores the importance of gaining a nuanced understanding of monetary systems and the challenges faced by the global economy. He urges viewers to educate themselves on the complexities of modern financial systems before advocating for or designing new monetary solutions, cautioning against oversimplified or misguided approaches to financial innovation.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.