How is new money created in the economy?

[Oddball]

No, that's not what happens. Banks buy Treasury bonds or the same reason they loan money to you and me. They generate profit through the collection of interest. Banks buy and sell debts as part of the normal course of business. When banks buy debts, they gain profit (so long as the debt payments are made). When banks sell debts they gain cash on hand that they can then potentially loan out again, or use for other methods of investment. In short, banks are constantly buying and selling assets, all part of their complex methods of trying to maximize their profits and staying solvent.

Banks also borrow money. The Federal Reserve is the lender of last resort from whom banks may borrow in their desperate hour of need in order to remain solvent.

When banks sell Treasury bonds, they do so on the open market. The Federal Reserve, through its normal operations, buys bonds on the open market. The Federal Reserve achieves profits from its operations, but since it's a non-profit entity those profits have to either be spent at the end of the year, or dumped into the Treasury at the end of the year. When the Federal Reserve buys Treasury bonds on the open market, the interest on those bonds then goes to the Federal Reserve. While this may mean that that interest makes it back into the Treasury when the Fed remits its profits, all that means is that the federal government is able to leverage careful and skillful securities trading to minimize the actual amount of interest that is paid out on the public debt.

 

[Stryder50]

Not you that is for sure.

Tell us what gold is valuable for

Weapons?
Construction
Food?

Gold is the most electrically conductive element. It's used in high end electronics to provide tarnish free contacts.

Basic science, but that seems in short supply with many posters here.

 

[Stryder50]

All I know is that gold was used as money thousands of years ago and was used up until governments started switching to currency. Gold has some kind if value because it’s a tangible asset that has use, be it whatever that use is, and it has desirability as a precious metal. Currency has no value, it’s just paper, it’s not backed by anything, it’s not based on anything.

So, I guess the answer to this situation is that, our way of life is a facade, built on nothing, backed on nothing. I guess that’s why other countries are trying to get away from the dollar

Other countries also have the same/similar situations with regard to their currency/money.
Other countries are trying to get away from the dollar so they are less influenced by the USA and to try and get their currency/money to have more value.

 

[Lesh]

Gold is the most electrically conductive element. It's used in high end electronics to provide tarnish free contacts.

Basic science, but that seems in short supply with many posters here.

Yes, gold has some actual real world value NOW.

For almost of the time it was considered valuable it did not.

How recent has it been used electronically?

Certainly not the thousands of years it was Used as currency

 

[Billy000]

This is the kind of thing that tends to be tossed around a lot around here, but new people seem to address at its roots. So let's talk about it.

The government printing it. This isn’t to say I think this automatically gives money value, but it’s still the closest answer. Money banks give out already exists.

 

[Stryder50]

Yes, gold has some actual real world value NOW.

For almost of the time it was considered valuable it did not.

How recent has it been used electronically?

Certainly not the thousands of years it was Used as currency

It has a real world use outside of monetary systems that gives it an industrial use. Which I understood as the answer to your vague question I responded to.

As for ancient use/value, it was prized by the "Gods" of many religions around the world so that would seem to be the origins of economic use.

 

[Lesh]

It has a real world use outside of monetary systems that gives it an industrial use. Which I understood as the answer to your vague question I responded to.

As for ancient use/value, it was prized by the "Gods" of many religions around the world so that would seem to be the origins of economic use.

The Gods?

That’s where it got its value from?

Yeah

Whatever

 

[Lesh]

The government printing it. This isn’t to say I think this automatically gives money value, but it’s still the closest answer. Money banks give out already exists.

It exists because the Fed created it and lent it out

 

[Godboy]

Hoe boy. facepalm Imma need a sandwich first.

Will a sandwich help you formulate a logical response to his clearly factual post? Maybe if you spent less time being a hooker and more time learning about grown up stuff, you wouldnt be so confused.

 

[Stryder50]

The Gods?

That’s where it got its value from?

Yeah

Whatever

If you knew your history, especially of the first civilizations around the globe you would have known that.
Appears you are another of the masses of under-educated cranked out of the school systems of the past decades.
I'll know better than to waste time responding to you in the future.

 

[Billy000]

Will a sandwich help you formulate a logical response to his clearly factual post? Maybe if you spent less time being a hooker and more time learning about grown up stuff, you wouldnt be so confused.

This coming from someone who without a doubt has watched porn before.

 

[Lesh]

If you knew your history, especially of the first civilizations around the globe you would have known that.
Appears you are another of the masses of under-educated cranked out of the school systems of the past decades.
I'll know better than to waste time responding to you in the future.

I should be so lucky.

Yes please fuck off. Your distractions are not required

 

[Stryder50]

I should be so lucky.

Yes please fuck off. Your distractions are not required

Neither is your ignorance helpful.

 

[Lesh]

Neither is your ignorance helpful.

Gold is not part of this discussion genius… whether or not the Gods created it (snicker)

 

[Stormy Daniels]

The government printing it. This isn’t to say I think this automatically gives money value, but it’s still the closest answer. Money banks give out already exists.

Death wish reaction.

 

[Independent thinker]

This is the kind of thing that tends to be tossed around a lot around here, but new people seem to address at its roots. So let's talk about it.

LOL. "New" money is created when they print more money.

 

[Godboy]

This coming from someone who without a doubt has watched porn before.

Ive watched porn, but i have never been a prostitute.

 

[Stormy Daniels]

LOL. "New" money is created when they print more money.

Really? That's it?

 

[Independent thinker]

Really? That's it?

Obviously, money that is old has already been printed so new money must be money that was just printed.

 

[Godboy]

Really? That's it?

Thats the problem with this stupid fucking thread. Your child like mind was unable to make a coherent OP because, you are ignorant.

"How is new money created" - Stupidest question this week.