Money, debt and the banking system

http://www.youtube.com/watch?v=YTRDeLGOKjk
1. Try to explain the meaning of the following words:
mint, earning, borrower, obligation, to repel, vault, to expand, depositor, claim check.

2. Watch the video and answer the following questions:

1) How do most of the people visualize the answer “Where does money come from?”

2) What is the vast majority of money created by?

3) How do the banks make their money?

4) What does the borrower’s signature on the bank document mean?

5) How did people live without money in ancient times?

6) What did Goldsmith do to protect the money?

7) Why did people keep their gold in the vaults?

8) What did Goldsmith charge for giving out the loans?

9) What did Goldsmith offer to his depositors when they blamed him for wasting their money?

10) What brilliant idea came into Goldsmith’s mind?

11) When can the banking system crush down?

3. Read the comments which have been added in response to the video.
Discuss how far you agree with each person. Explain why.
Nikita Rozhdestvensky
Debt is not only what we own to banks. It is also what the government owes to us. I.e. health insurance,
pensions etc. That is why we can not just default on all of it. Also all future debt goes on to our children
and further. I think no one would like to know that you are born in debt. The system works only in theory,
based on a world with limitless resources. The fact is of course the opposite. Pretty soon it's going to be a
real mess.
InstTaxSolutionsLLC
They make a good point in that the subject of money really isn't discussed very often in our schools. Yet,
it's a subject that affects each of us.
L0ngB0ard99
Pisses me off only 13 000 people have seen this. Why isnt this taught in schools? Because everyone
would hate the government for being so stupid, kids can relize how dumb they are, weird system that
protects against any sort of change or alternative way of policy or life.

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