How is new money created in the economy?

[struth]

Money is created by the Govt...they print it, or make the coinage.....but it having any value is not created by the Govt.

 

[Lesh]

Money is created by the Govt...they print it, or make the coinage.....but it having any value is not created by the Govt.

They print it huh?

Do you really believe that the amount of printed currency is anywhere close to the amount of dollars in the economy?

Because if you do you have no business talking about any of this

United States - Currency in Circulation - 2024 Data 2025 Forecast 1917 Historical

United States - Currency in Circulation was 2345.90500 Bil. of $ in April of 2024, according to the United States Federal Reserve. Historically, United States - Currency in Circulation reached a record high of 2345.90500 in April of 2024 and a record low of 3.71400 in August of 1917. Trading...

tradingeconomics.com

A little over 2 trillion dollars . That’s all the currency in circulation.

Assuming you have a bank account with ‘$10K in it. How much of that is in cash?

Very very little. Which is why bank runs are a problem

 

[Godboy]

They print it huh?

Do you really believe that the amount of printed currency is anywhere close to the amount of dollars in the economy?

Because if you do you have no business talking about any of this

Youre battling fake arguments that no one made in order to get a win in a debate? That is pathetically weak dude and its not going to work. You look fuckin stupid right now.

 

[struth]

They print it huh?

Do you really believe that the amount of printed currency is anywhere close to the amount of dollars in the economy?

Because if you do you have no business talking about any of this

United States - Currency in Circulation - 2024 Data 2025 Forecast 1917 Historical

United States - Currency in Circulation was 2345.90500 Bil. of $ in April of 2024, according to the United States Federal Reserve. Historically, United States - Currency in Circulation reached a record high of 2345.90500 in April of 2024 and a record low of 3.71400 in August of 1917. Trading...

tradingeconomics.com

A little over 2 trillion dollars . That’s all the currency in circulation.

Assuming you have a bank account with ‘$10K in it. How much of that is in cash?

Very very little. Which is why bank runs are a problem

1) yes the Govt prints money, in fact they are the only entity that can legally do it.
2) No I don't believe that.

 

[Lesh]

Youre battling fake arguments that no one made in order to get a win in a debate? That is pathetically weak dude and its not going to work. You look fuckin stupid right now.

There’s nothing fake about what I said.

If you really believe that explain. In detail

 

[Godboy]

There’s nothing fake about what I said.

If you really believe that explain. In detail

When did he say what youre claiming he said? He didnt, and thats why you look stupid as fuck. Youre a real dipshit, did you know that?

 

[Lesh]

1) yes the Govt prints money, in fact they are the only entity that can legally do it.
2) No I don't believe that.

Do you understand that what you are saying makes no sense then?

If “printing money “ is how new money is created… then there would have to be many times the amount of currency on circulation.

Christ. I’d have better luck discussing geometry with my dog

Never mind

 

[Lesh]

When did he say what youre claiming he said? He didnt, and thats why you look stupid as fuck. Youre a real dipshit, did you know that?

Explain in detail. All you did was whine

 

[Billy000]

Death wish reaction.

View attachment 885258

Umm okay.

 

[Godboy]

Explain in detail. All you did was whine

You arent good with details. The most simple things confuse you.

 

[Oddball]

Money is created by the Govt...they print it, or make the coinage.....but it having any value is not created by the Govt.

Actually, it's "value" is by the force of legal tender laws....If we weren't forced to use the Fed's phony "money", it my not have survived.

 

[Oddball]

Do you understand that what you are saying makes no sense then?

If “printing money “ is how new money is created… then there would have to be many times the amount of currency on circulation.

Christ. I’d have better luck discussing geometry with my dog

Never mind

Today's "printing" is the moving of a decimal point and adding some zeroes on bank ledgers.

Your dog knows more about this topic than you do.

 

[Libby von H]

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.

Despite MMT theory , money does not enter or leave the economy with any set conversion into goods. Biden seems almost impossibly stupid in this matter. He has been puzzled of late because his billion dollar projects are going bankrupt.But of course they would since the preceding trillions ushered in an inflation that more money will only exacerbate. But he is as he always has been : Stupid and lazy.

Giant offshore wind project axed in blow to Biden's green goals​

White House said now-canceled project was proof of 'Bidenomics' succeeding​

 

[Libby von H]

Actually, it's "value" is by the force of legal tender laws....If we weren't forced to use the Fed's phony "money", it my not have survived.

This is the fallacious 'perfection' argument much loved by the Clintons.The alternative is State issued money and that was an undenied and undeniable tragedy that I don't remember any of the Founders not decrying. Look up Rhode Island's money uses and see why the place was called Rogue Island

https://csac.history.wisc.edu/2023/02/07/paper-money-the-debtors-panacea-or-an-instrument-of-fraud/

"Rhode Island, often referred to at the time as Rogue Island, had the most radical economic policy in postwar America. Running on the platform “To Relieve the Distressed,” the state’s Country Party won complete control of all branches of the state government in April 1786. The following month the legislature approved an emission of £100,000 of paper money—a huge amount for such a small state. Declared legal tender, the currency depreciated immediately, eventually falling to 15 to 1. In June 1786, the state passed a penalty act calling for the prosecution of anyone who refused to accept the paper money at par in payment for a debt."

 

[Oddball]

This is the fallacious 'perfection' argument much loved by the Clintons.The alternative is State issued money and that was an undenied and undeniable tragedy that I don't remember any of the Founders not decrying. Look up Rhode Island's money uses and see why the place was called Rogue Island

https://csac.history.wisc.edu/2023/02/07/paper-money-the-debtors-panacea-or-an-instrument-of-fraud/

"Rhode Island, often referred to at the time as Rogue Island, had the most radical economic policy in postwar America. Running on the platform “To Relieve the Distressed,” the state’s Country Party won complete control of all branches of the state government in April 1786. The following month the legislature approved an emission of £100,000 of paper money—a huge amount for such a small state. Declared legal tender, the currency depreciated immediately, eventually falling to 15 to 1. In June 1786, the state passed a penalty act calling for the prosecution of anyone who refused to accept the paper money at par in payment for a debt."

The alternative is Article 1 specie for money.

 

[Nobody911]

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.

New money is created in the US economy primarily through the process of lending and borrowing. When a bank or financial institution issues a loan, it essentially creates new money by increasing the amount of money in circulation.

This is because when a loan is made, the borrower receives the loan amount as a deposit in their bank account, effectively increasing the money supply.

Additionally, the Federal Reserve, which is the central bank of the United States, has the authority to create new money by purchasing government securities or by adjusting the reserve requirements for banks.

While the physical printing of money does occur, it is a much smaller factor in the overall creation of new money in the economy.

Edit: Fractional reserve lending is a banking system in which banks are required to hold only a fraction of their deposits as reserves and can lend out the rest. This allows banks to create new money through the process of lending, as the money they lend out effectively becomes a new deposit in the recipient's account, which can then be lent out again. This process can lead to an expansion of the money supply in the economy.

However, it also carries the risk of bank runs and financial instability if depositors lose confidence in the banking system.

 

[Natural Citizen]

Edit: Fractional reserve lending is a banking system in which banks are required to hold only a fraction of their deposits as reserves and can lend out the rest. This allows banks to create new money through the process of lending, as the money they lend out effectively becomes a new deposit in the recipient's account, which can then be lent out again. This process can lead to an expansion of the money supply in the economy.

This is where most of it occurs. It's constant. And basically just a supply of digital numbers in the modern age.

Good post, man...

 

[Stryder50]

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

Go back to post #45 here, made by YOU.
YOU were part of bringing gold into the discussion.
Gods didn't create gold. That they prized it and had humans offering it to them, is one main way how it gained enhanced value in human affairs, long ago.

You are quite the dunce, and obnoxious to boot.

 

[struth]

Actually, it's "value" is by the force of legal tender laws....If we weren't forced to use the Fed's phony "money", it my not have survived.

You don’t have to accept money, you can trade some else you have. The other party has to be willing to take it

 

[Stormy Daniels]

Obviously, money that is old has already been printed

Actually, that's often not true. There are only about $2.3 trillion worth of currency in circulation in the US economy, which is only a fraction of all money in the economy.