Newstopia explains the Reserve Bank

Uploaded by: AaronGNielsen
Video Description:
UPDATE: The day this video got picked up by a couple of left-wing blogs in the USA and Canada was, coincidentally enough, my birthday. I can't give enough thanks to everyone who has enjoyed the video so far. Spread the word!
"Shaun Micallef" (Shaun Micallef) and "Tony Froth" (Nicholas Bell) explain the role of the Reserve Bank of Australia and how to control inflation.
This was taken from the TV show "Newstopia" (Season 2, Episode 3, aired 12 March 2008). I'm uploading this to celebrate the launch of the third season of the show. This is one of my favourite moments from the second season.
I don't own the copyright to this - it belongs to the Australian TV channel, SBS. That said, there is plenty of Newstopia material on YouTube already, including an incomplete version of this material. In any case, I personally think the show deserves all the publicity it can get.
Visit the show's official website: http://www.sbs.com.au/newstopia

Tags for this video: bank bell inflation micallef newstopia nicholas reserve satire sbs shaun

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That doesn't follow ... ( 5 days ago by AaronGNielsen)

That doesn't follow from anything I've ever said or written. The world's economy doesn't run on precious metal now - and just look at the state it's in. :)
It's clear from your comments that you don't understand the historical role of precious metals in the world economy, nor the economic volatility of the last century, nor the centuries of stability that preceded it because of the pound sterling. I suggest you read "Gold Wars" by Ferdinand Lips, or what Chris Martenson's "Crash Course".

"The world's ... ( 5 days ago by rspawn)

"The world's economy doesn't run on precious metal now"
But you think the world's economy should be limited by the availability of gold.
We could run out of gold so that according to you no more money should be printed, even if there would still be other resources that - with labor invested - would grow the economy - yet in the system you propose it would not be allowed to grow.

If you hit a max ... ( 5 days ago by LivingWithUncleRay)

If you hit a max amount of gold in circulation then each piece of gold is worth more and can buy more because there is a lower supply than demand. Don't forget there is also silver or even platinum.

As I posted before, ... ( 4 days ago by AaronGNielsen)

As I posted before, though, the question isn't whether the economy *should* be limited by gold or anything else. The question is whether an economy based on growth is sustainable at all. Sure, there's finite amount of gold et al, but there's also a finite amount of raw materials from which to make products.
Remember, it's the promise of things to invest in, without the things themselves, that has caused our current economic mess.

"As I posted before ... ( 4 days ago by rspawn)

"As I posted before, though, the question isn't whether the economy *should* be limited by gold or anything else.
The question is whether an economy based on growth is sustainable at all."
If the question is about the sustainability of economic growth, then why bring up the gold standard?
I know there's a lot wrong with the economy and money system as it is.
All i'm saying is that a gold standard does not solve those problems.

Our current system ... ( 4 days ago by AaronGNielsen)

Our current system is inflationary by its very nature. Money is created by debts, debts increase via compound interest, and the only way to pay off interest is growth, which means creating more money by creating more debt, etc.
The gold standard was, in a way, a way of checking growth. It made growth more difficult, but it meant that your money was always worth something. It's not perfect either, sure, but it worked for centuries before our time and I think the world was wrong to abandon it.

The Predatory ... ( 3 days ago by rspawn)

The Predatory Capitalism you describe has been around for a long time even before the gold standard was abandoned. There also was compound interest and loan-sharking in the time when the only money was gold pieces.

All that money is, ... ( 3 days ago by rspawn)

All that money is, is a means to trade in a way that's more convenient than bartering: Instead of swapping ie a bucket of milk for a couple of loafs of bread, people use official "I Owe You's" (aka paper money).
In this example the value of the money is a bucket of milk, and it can be used to buy something of equal value, ie a few loafs of bread. There's no need for rare resources to get involved in that process, except as yet another good to be traded.

The problem is not ... ( 2 days ago by bak3m0n)

The problem is not about the value of the money. The real problem is the money isn't control by anyone of the citizen nor the government. When it's amount and value is privately controlled by a small group of individual, the problems start.

A perfect ... ( 2 days ago by angpetru)

A perfect explanation of the current state of the world economy.

tally sticks as a ... ( 2 days ago by dogzzz3)

tally sticks as a means of exchange worked in the UK for hundreds of years before fractional reserve banking stole the national wealth and enslaved the ignorant masses into debt servitude.
Fractional reserve banking of fiat currency IS ultimatly the biggest con on the face of the planet. However one may justify it as a means to stimulate increases in production, ultimately debt growth outstrips productivity growth at which point a crash happens and the banks take back the all wealth.

The whole point of ... ( 2 days ago by dogzzz3)

The whole point of fractional reserve banking of a fiat currency is to create money (for free) at the click of a mouse and then charge people interest on it which can only be repaid by their labour or property/land/business. and ultimately by further borrowing. It is a massive con, a scam.

So true. But you ... ( 1 day ago by anyusmoon1)

So true. But you and I do similar things we're charged with pyramid schemes. Hmmm pyramids... wonder if there's some connection? lol
Good comment. Yes, it's a scam- ABOLISH the FED RESERVE, UN, IMF, World Bank, CFR, Trilateral Commission, unconstitutional application of income tax etc, etc, etc.

And a perfect ... ( 1 day ago by anyusmoon1)

And a perfect ending for the bankster involved :-),self imposed of course- we law abiding types believe in fair trials, right? :-)

Increasing money in ... ( 1 day ago by daniel987878)

Increasing money in circulation by cheapening debt is a short term boost if the economy is at below optimum. Once it reaches its natural level the debt has to be paid back plus interest and this forces the economy below its optimal level again by removing demand.
The money supply needs to be stable.

Fixing the supply ... ( 1 day ago by daniel987878)

Fixing the supply of money dosnt actually make growth slower. Real growth is the growth in output not in units of account. If the money supply was fixed then the GDP in money terms of a nation would always be identical whether it produced 100 cars or 200 cars in a year. The only difference is they would cost half as much.

I dont think anyone ... ( 1 day ago by daniel987878)

I dont think anyone is advocating adopting bartering as opposed to currency on a mass scale. I think people just want a stable money supply.

Fixing the money ... ( 1 day ago by daniel987878)

Fixing the money supply would fix these problems. The money to borrow would have to come from savings and you couldnt have credit bubbles either.

Yeah, expanding and ... ( 1 day ago by germanicelt)

Yeah, expanding and contracting the money supply is the cartel banksters plot to gain more and more control over a nation.

Check out 'The ... ( 1 day ago by germanicelt)

Check out 'The Money Masters' on my favorites. That will explain everything.

All sovereignty ... ( 1 day ago by esgmydas)

All sovereignty will be abolished, all economies will be global...
"And he causes all, small and great, to receive a mark in their hand or their
forehead, and no one will be able to buy
or sell except he who has the mark.."
Think about it...

why do we keep ... ( 1 day ago by countesscristo)

why do we keep paying them anything.

I like the end ... ( 1 day ago by Monkor001)

I like the end where it dawn on the banker how fed everything is

Love Shaun Micallef ... ( 1 day ago by openmindedaussie)

Love Shaun Micallef... He's a funny bastard... Very educated and very funny....

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