97% Owned: The Cruel Truth Behind Money Credit and Financial Crisis | ENDEVR Documentary

This paragraph explores the origins and mechanics of the modern monetary system. It discusses how money is created by commercial banks through lending, the impact of this process on national and international levels, and how the current system provides foundations for international dominance and control. It emphasizes the need for open dialogue on the future of the monetary system amid ongoing crises.

This paragraph delves into the details of how banks create money through lending. It explains that 97.4% of the total money supply in the UK is created by commercial banks as debt when they issue loans. It contrasts this with the 3% of money created by the central bank (Bank of England) through printing physical cash. The paragraph highlights the significant profits banks make from creating electronic money compared to physical cash.

This paragraph further elaborates on the process of money creation by banks through lending. It explains that when banks issue loans, they create new commercial bank money, and when customers repay loans, that money is destroyed. Banks keep the interest as profit. The paragraph also discusses common misconceptions about how banks operate and the reality that money creation and control are largely in the hands of private banks.

This paragraph examines the specific mechanisms through which banks create new money. It explains that banks create new money whenever they extend credit, buy existing assets, or make payments on their own account, primarily by expanding their assets. It also discusses how new commercial bank money enters circulation when people spend the credit granted to them by banks.

This paragraph discusses the global impact of bank money creation. It highlights the exponential growth of the UK money supply in the years leading up to the 2007 crisis, with banks creating over £1.2 trillion in new money during that period. It also touches on the growth of the banking sector globally and its increasing dominance compared to the real economy.

This paragraph explains the role of central bank reserves, an electronic version of cash used by banks for interbank payments. It describes how the Bank of England creates these reserves out of nothing by increasing the available credit in settlement banks' accounts, in exchange for bonds or assets as collateral. The paragraph also discusses the significance of central bank reserves in facilitating interbank transactions.

This paragraph provides a historical perspective on the evolution of money systems, from the gold standard to the Bretton Woods agreement and the modern fiat money system. It discusses how the collapse of the dollar-gold standard in 1971 and subsequent deregulation led to exponential growth in money creation, as money became pegged to nothing and backed by belief and credit.

This paragraph examines the relationship between the expansion of the money supply and inflation. It explains that as more money is available, it can be invested in productive avenues, leading to economic growth, but it can also fuel speculation and drive up asset prices, leading to inflation. The paragraph discusses the potential consequences of unchecked money supply growth.

This paragraph focuses on the impact of bank money creation on the housing market. It explains how a significant portion of new money created by banks was directed into the mortgage and housing market, leading to a dramatic increase in house prices. The paragraph highlights the regressive nature of this policy, redistributing wealth from the poor to the wealthy while failing to create net economic value.

This paragraph continues the discussion on the effects of bank money creation on the housing market. It explores how the influx of new money into the housing sector led to rising house prices, making housing increasingly unaffordable for the general population. The paragraph also touches on the potential long-term consequences of such policies on economic stability and social inequality.

This paragraph examines the impact of the current monetary system on purchasing power and debt levels. It explains how the creation of money as debt leads to a gradual decrease in the standard of living, as people become poorer and more dependent on debt. The paragraph also discusses the paradox of economic growth being tied to increasing debt levels under the current system.

This paragraph explores the distribution of wealth and profits within the banking sector. It highlights how the current monetary system allows the banking sector to extract wealth from the economy while providing nothing productive in return. The paragraph discusses how technological advancements and increased efficiency have not translated into improved living standards due to the debt-based money system.

This paragraph examines the global consequences of the current monetary system. It discusses how the system lowers the standard of living for the majority while concentrating wealth among the privileged. The paragraph also touches on the regressive nature of the system, with the poorest bearing the brunt of economic crises despite not benefiting from the preceding booms.

This paragraph explores the role of banks in the current monetary system and the resulting democratic deficit. It highlights how private profit-seeking banks create vast amounts of new money and allocate it according to their own interests, with little democratic control or accountability. The paragraph also discusses the potential conflicts between the interests of banks and the public good.

This paragraph examines the consequences of bank bailouts and austerity measures implemented by governments in response to the financial crisis. It discusses how these measures effectively shift the burden of debt from banks to the public, with the most vulnerable segments of society bearing the brunt of the costs. The paragraph questions the fairness and sustainability of such policies.

This paragraph discusses the practice of leveraged buyouts, where companies are purchased at inflated prices, and the purchase price is transferred as debt to the acquired company. It explains how this practice exacerbates the expansion of debt and the money supply, contributing to economic booms and eventual busts when the debt becomes unsustainable.

This paragraph explores the global dynamics of trade imbalances and currency wars. It discusses how countries with trade deficits accumulate foreign reserve currencies, while countries with surpluses hold their own reserves. The paragraph also examines the concept of competitive devaluation, where countries attempt to devalue their currencies to boost exports, potentially leading to currency wars.

This paragraph focuses on the foreign exchange market and currency speculation. It discusses the growth of the foreign exchange market, where trillions of dollars in currencies are traded daily, and how speculation and volatility in these markets can impact countries, particularly developing nations. The paragraph also touches on the concept of financial warfare through rapid withdrawals of a nation's currency.

This paragraph explores the role of international organizations in regulating currencies and managing the global monetary system. It discusses the potential for creating a new international monetary system or a basket of currencies backed by scarce and valuable resources, such as renewable energy or a commodity-based standard, to promote stability and fairness in the global economy.

This paragraph examines the development of financial innovations, such as securitization and derivatives, as a means to manage risk in the absence of a defined commodity-based value underlying currencies. It discusses how these innovations were intended to stabilize the financial system but ultimately contributed to the 2008 crisis and the realization of their inherent risks.

This paragraph discusses the exponential growth and dominance of the financial sector as a result of the current monetary system. It highlights how the financial sector has benefited enormously from the system while providing little productive value in return. The paragraph also touches on the concentration of wealth and power within the financial industry.

This paragraph explores the global impact of the current monetary system and the role of institutions like the International Monetary Fund (IMF) in imposing structural adjustment programs on developing countries. It discusses how these programs often destroy local industries and increase dependency on developed nations, effectively robbing countries of their sovereignty and perpetuating a cycle of debt and economic subjugation.