How is new money created in the economy?

[Stormy Daniels]

And here’s the kicker, you can no longer exchange your currency for gold, but you can take your currency and buy gold from a broker who will, I’m sure, sell it to you for a marked up value.

In other words....you can exchange it for gold.

You know, neither gold nor silver are inherently valuable. Their value, like anything else, is only established through mutual agreement. The Spartans used iron strips as currency, and their economy funded the most magnificent military the world had ever seen.

 

[ThisIsMe]

Kinda. You read Creature from Jekyll Island huh

Yes, money is created out of thin air and then loaned out to banks.

What that jackass left out was that when those loans are repaid that money goes POOF, back into thin air

No, he covered that, by saying that every dollar is purchased with interest, and every dollar of interest extinguishes every dollar of currency, but there will always be interest owed on every dollar, so there is never enough money in the system to pay off the debt.

 

[Oddball]

Because we BELIEVE it has far more value than it does.

Gold has “value” as a trinket mostly. Which isn’t really value.

It has some value in electronics, but that is a pretty recent use.

2,000 year of history vs. one of the top most stupid posters in the history of the forum.

Hmmmmmm....Wonder who's right.

 

[Oddball]

In other words....you can exchange it for gold.

You know, neither gold nor silver are inherently valuable. Their value, like anything else, is only established through mutual agreement. The Spartans used iron strips as currency, and their economy funded the most magnificent military the world had ever seen.

"Mutual agreement" = Damn near every civilization throughout time has accepted it as a valid store of value.

 

[Lesh]

2,000 year of history vs. one of the top most stupid posters in the history of the forum.

Hmmmmmm....Wonder who's right.

Not you that is for sure.

Tell us what gold is valuable for

Weapons?
Construction
Food?

 

[Lesh]

"Mutual agreement" = Damn near every civilization throughout time has accepted it as a valid store of value.

And it could have just as well have been shells or… paper

 

[Stormy Daniels]

Well, the banks are the middle man
It’s been awhile since I looked at the information, but it is essentially how it works.

The government issues bonds to the treasury which the auctions those off to the banks, the banks buy the IOUs (bonds) from the treasury and sells them to the federal reserve for a profit. The federal reserve then buys those bonds with another IOU (a check) that they send to the bank. The banks then use that money to buy more bonds from the treasury and the cycle repeats.

The treasury then deposits that money from the banks into various government department who then pay for contract services and what not. Those contractors then deposit the money into banks where is is loaned out via fractional reserve lending…

It’s all in the video I posted. You should watch them (there are several). They are pretty good.

Dear God™ no.

The government does not issue bonds to Treasury. Treasury issues the bonds. And banks don't sell bonds for a profit. They hold the bonds for a profit. They sell the bonds for liquidity.

Yes, it all comes back to fractional reserve banking. But you are somehow finding a way to get each and ever mechanism entirely factually wrong.

 

[Oddball]

And it could have just as well have been shells or… paper

"Could well have been" is for fucking children.....It wasn't.

Wortheless paper commercial script is only used by force of arms.

 

[Lesh]

No, he covered that, by saying that every dollar is purchased with interest, and every dollar of interest extinguishes every dollar of currency, but there will always be interest owed on every dollar, so there is never enough money in the system to pay off the debt.

The interest becomes inflation and that inflation over time reduces the value of debt. Like the mortgage on your house.

For instance we still carry the full debt from WWII on the books but inflation makes it inconsequential

 

[Lesh]

"Could well have been" is for fucking children.....It wasn't.

Wortheless paper commercial script is only used by force of arms.

Tell us the actual uses of gold.

You kinda blew past that

 

[Oddball]

The interest becomes inflation and that inflation over time reduces the value of debt. Like the mortgage on your house.

For instance we still carry the full debt from WWII on the books but inflation makes it inconsequential

 

[ThisIsMe]

Kinda. You read Creature from Jekyll Island huh

Yes, money is created out of thin air and then loaned out to banks.

What that jackass left out was that when those loans are repaid that money goes POOF, back into thin air

Also, the money isn’t loaned to the banks, the government purchase contracts and pays out money to those contractors. That money is deposited into the banks

Honestly, if you want to drill down to the bare bones, money is created by the government issuance of debt.

The government issues an IOU to the treasury, that creates debt, the treasury sells the IOU to the banks, which indebts the government to the banks, the banks sell those IOUs to the fed, which indebts the banks to the fed (or indebt the government to the fed), the banks repeat the process to buy more debt from the treasury.

 

[Oddball]

Also, the money isn’t loaned to the banks, the government purchase contracts and pays out money to those contractors. That money is deposited into the banks

Honestly, if you want to drill down to the bare bones, money is created by the government issuance of debt.

The government issues an IOU to the treasury, that creates debt, the treasury sells the IOU to the banks, which indebts the government to the banks, the banks sell those IOUs to the fed, which indebts the banks to the fed (or indebt the government to the fed), the banks repeat the process to buy more debt from the treasury.

Charles Ponzi blushes.

 

[ThisIsMe]

Irrelevant to this discussion

Ok, I can’t argue that…the discussion is about how money is created.

Although my response is relevant to the overall way the system works

 

[Lesh]

So the OP started this thread to point out how little the Trumpers know about the subject

 

[Lesh]

Ok, I can’t argue that…the discussion is about how money is created.

Although my response is relevant to the overall way the system works

Money. Not wealth. And Gold is no part of that

 

[ThisIsMe]

Because we BELIEVE it has far more value than it does.

Gold has “value” as a trinket mostly. Which isn’t really value.

It has some value in electronics, but that is a pretty recent use.

Gold has value because of its rarity as a precious metal. Our currency is what has no value because it’s based on nothing.

 

[ThisIsMe]

Money. Not wealth. And Gold is no part of that

Never said anything about wealth.

 

[ThisIsMe]

In other words....you can exchange it for gold.

You know, neither gold nor silver are inherently valuable. Their value, like anything else, is only established through mutual agreement. The Spartans used iron strips as currency, and their economy funded the most magnificent military the world had ever seen.

No, you can’t “exchange” it for gold, not like you used to. Used to be you could take a $100 bill and exchange it for $100 worth of gold. You can’t do that anymore and that $100 worth of gold will cost more when you buy it from one of these gold brokers.

Gold has value in its rarity, and because of people’s desire for it. Supply and demand essentially.

 

[ThisIsMe]

Not you that is for sure.

Tell us what gold is valuable for

Weapons?
Construction
Food?

What value does currency have? Its only value WAS because it was backed by gold, a tangible asset that was desirable to people. Now we’re not on the gold standard, so what gives currency its value?