# Ep. 7 THE SECOND PART OF THAT FILM ABOUT MONEY James Schamus - YouTube Summary::One of the series of videos about money. I have watched a couple and they are either littered with errors or terribly misleading. # Links Clipped from [Ep. 7: THE SECOND PART OF THAT FILM ABOUT MONEY | James Schamus - YouTube](https://www.youtube.com/watch?v=cGJTE4V6e_k&t=235s) at 2024-04-14. ## Notes 1:00 — the Federal Reserve prints money. 1:48 — Richard Wolf-the Federal Reserve gives money to banks under various conditions. Most of the time cost free. 2:43 —Anat Admati, Stanford business school — banks do whatever works for them. Wolf again: banks encourage the federal government to borrow from them. 3:40 — banks borrow from the Fed at 1% and lender the treasury at 2 to 3%. (This is all based on Wolf's assumption that the Fed actually provides money to banks.) 4:16 — productivity has risen but real wage growth has declined or at least not kept up 5:00 — people paid for additional consumption through rising debt. (Nothing about the money paid by the government for various projects or redistribution.) 5:30 — bank deposits are in essence a loan to the bank. (No acknowledgment of the fact that these are demand deposits subject to immediate withdrawal, unlike a loan that has a maturity date.) ## My Comments This video provides one of the worst explanations of money that I have viewed. It probably holds the record for the number of errors and misstatements per minute then any video on YouTube. I tried to keep count, but gave up at about the five minute mark. I will touch on just a couple. First, the Federal Reserve does not print money (neither literally nor figuratively.) The dollars held by the Federal Reserve cannot be used as money. Private parties cannot have accounts with the Federal Reserve, and describing the purpose of reserve balances would take more time than I'm willing to devote to this comment. Second, deposit liabilities, which we erroneously referred to as simply "deposits," do not represent "loans" to banks. Banks should honor deposit liabilities immediately, whereas loans have specific maturity dates of for which "funds" are not yet available. I suggest that any viewer of this video take the time to examine the claims that are made in it before they believe a word that is said. Posted Monday 15th April 2024 13:59:00