Tuesday, February 8, 2011

The Money Fix and the Unemployment Paradox

The monetary system operates on the premise of scarcity.  Less money is issued than needed in order to maintain the value of money.  So while there is plenty of work to be done, and plenty of desire to work, there is currently a lack of jobs.  Why the unemployment paradox?  This movie, The Money Fix, explains how money is created and its systemic deficiency that creates the unemployment paradox.  Communities are solving the problem by bartering.

The movie provides a good explanation of how money is created by the federal bank, gives compelling interviews of community bartering systems, and explores money scarcity as the reason for the unemployment paradox.  It is weak on explaining the finer details of some of its assertions, such as the assertion that someone in the system has to eventually go bankrupt due to the scarcity in the money supply.  Nonetheless, it is an interesting watch.