I didn't see it, and I know the guy is full of it.
If you want to learn about the same topic without the idiotic conspiracy theories, watch this one. It's actually informative, and I doubt the motives behind it were to expose the Illuminati and Xenu.
EDIT: Whoops, forgot the link.
http://video.google.com/videoplay?docid=-9050474362583451279
Already knew it. It's a waterfall effect. If you ever took a real economics or government class in University, you should have seen the very same. I deposit $1000 and the bank loans out $950 to a business. The business pays $900 to an employee, who puts $850 into his bank account. His bank then loans out $800, of which $750 goes into another account. And so on--so you see that the money multiplies. $1000 will multiply itself as it is loaned and deposit.
Anyways--nothing new really. The only difference is there are conspiracy theorists who forget that this is how business works, how it worked hundreds of years ago, and how it will likely continue to work hundreds of years from now. It's all fine as long as most loans are repaid. And do realize that a credit and a loan are different things--in our modern economy, our credit card companies will pay a business for us, in the hopes of receive our interest as we repay them. Short-term loans is what it appears to be, but the money is backed up with cardholders' promise to repay, or have their items or similar repossessed. In some ways, you give up rights to do trade in society, but you're not enslaved in the system if you know how to manage your money. That's why this entire sub-prime mortgage crisis came around--people don't know how to manage their money and don't know when to read the fine print.
My advice is to manage your money. Don't spend it unless you need it. And no, you don't need a house. Live in an apartment until you can afford a house or a condo, and be ready to drop 30% or more of the value as a down-payment before you get a loan. It dramatically cuts interest rates and amount paid over time. Unless you plan on having a half a dozen kids in the first 2 years of marriage, you'll be fine in an apartment. That, and you don't have to worry about selling a house when you're offered a promotion in a different city or state.
