Money

[Benny2guns]

How is it created? What is it backed by? Who creates it? Who controlls it? Lets narrow it down to the U.S.A. and apply these questions to it for starts.
I am sure you all as I do have some idea's on this topic but how accurate they really are we will try and find out.

[billy]

How is it created? What is it backed by? Who creates it? Who controlls it? Lets narrow it down to the U.S.A. and apply these questions to it for starts.
I am sure you all as I do have some idea's on this topic but how accurate they really are we will try and find out.

used to be based on the gold standard.

how much gold you had and what the value of gold was dictated how much money you could circulate.
now it not based on gold.

gov dictates how much is in circulation and markets dictate its value. i think that if a country prints more than it has coming in, it's classed as owing that money. at some poing it has to be paid back

not sure but i'd say now the amount of money out there is worked out on the gdp of a country.

money is given to banks by the fed reserve and is basically a loan.
the fed sets how much money can be borrowed (made and lent)

so at present the usa is in debt up to it's adams apple. because it prints more than it has.

[Benny2guns]

Yes Gold at one time and also silver were used as a base for currency in the USA.
There are volumns of economics text's written but they are really no more than a smoke screen to hide how the money system really works.
Here is actually what happens..
There is no base for currency in the U.S.A. today. It is not based on the GDP.
The government prints Bonds. These Bonds are no more than a promise that the people of the U.S.A. will cover the face value of the Bond pluss interest to the holder of the Bond for their return.
The Federal Reserve Bank, which is a private bank, then loans the money (electronicaly) to the government at a preset interest rate.
Now here's the thing...the federal reserve bank operates on the fractional banking system which states that any bank only has to have 10% of the assets on hand to cover what it loans out. Sounds fare right? Well no, look at it this way. I'll use small numbers.
USA needs a 1 million dollar loan.
USA prints a 1 hundred thousand dollar bond.
Federal reserver bank takes the bond from the USA
Federal bank prints 1 million dollars and gives it back to the USA
The federal reserve bank has never put up a single cent of it's own.
The money has litteraly been created from thin air.
From nothing they collect interest by way of tax's. You may find this a bit hard to swollow but this is in fact how it works.

[Benny2guns]

No, I would say that in fact no money is actually created, only debt is created.
So my thoughts are...the government creates the bonds from nothing more than a promise of the people to cover them. The fed takes the promise and multiply's it by 10 and charges the people intrest there by locking them into a none stop circle of debt that can never be paid back. Seems the government should be printing the money themselves and at no interest to the people they represent. What is the middle man for? The fed plays no role other than to fleece the people.

[mrmod]

But if you print so much money and you want interest on it you're going to gte back more money. Now if you make all the money, you're going to make more so everybody has profits. Inflation?

[billy]

money (banknotes) have always been
a credit note. on the english notes it tells you so;

it says; "i promise to pay the bearer" all it is is a promissory note.
it's used in lieu of goods.

as long as i get x amount of goods for x amount of currency i don't care how much of it has been printed.

[Benny2guns]

money (banknotes) have always been
a credit note. on the english notes it tells you so;

it says; "i promise to pay the bearer" all it is is a promissory note.
it's used in lieu of goods.

as long as i get x amount of goods for x amount of currency i don't care how much of it has been printed.

Thats because the English bank has used the fractional system for long before the fed Bill. The same people run them both.

[srijantje]

yes,until they don't honor their promise,simple as that,look at zimbabwe

[Benny2guns]

But if you print so much money and you want interest on it you're going to gte back more money. Now if you make all the money, you're going to make more so everybody has profits. Inflation?

Actually Dan there is no where neer the amout of money in circulation to cover the amout of money owed back. The large sums are transfered electronicly. Inflation rates are controlled by the markets which are also controlled by the banks because they hold the purse strings. It's a very good scam.

[srijantje]

actually,it's the best scam on earth going already for a long time

[. . . .]

How is it created? What is it backed by? Who creates it? Who controlls it? Lets narrow it down to the U.S.A. and apply these questions to it for starts.
I am sure you all as I do have some idea's on this topic but how accurate they really are we will try and find out.

Cant you do your own research? The privately owned federal reserve bank. It makes and loans the currency to the US at interest so the US has to borrow more money at interest to pay it back.

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