How is new money created in the economy?

[Oddball]

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

Under the law, the Fed's phony commercial script was declared "legal tender" (i.e. money), contrary to Article 1.

 

[Lesh]

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.

And here you promised to ignore me. I was enjoying the lack of nonsense

 

[struth]

Under the law, the Fed's phony commercial script was declared "legal tender" (i.e. money), contrary to Article 1.

What in article 1 says congress can’t make legal tender?

 

[ThisIsMe]

gold and silver and any other commodity can be manipulated as well.

I’m sure, but gold has held up better than any other form of money.

from doing some reading, EVERY fiat currency has failed. Not one has ever survived. Gold, however, has been around since forever and it has stood the test of time.

 

[eagle1462010]

BRICS brought in South Africa for 1 main reason. Gold. Gold has been used as a standard longer than anything else. I dont see the world using Barley now.

We lose Reserve Currency status we are screwed. BRICS is drooling for that to happen.

 

[ThisIsMe]

what countries are still on the gold standard?

None that I can tell, and they are..or will be, in a sinking boat along with the rest of us. Those countries are probably being shafted by their central bank just as we are with ours.

 

[Lesh]

I’m sure, but gold has held up better than any other form of money.

from doing some reading, EVERY fiat currency has failed. Not one has ever survived. Gold, however, has been around since forever and it has stood the test of time.

Put all your money in gold. You’ll do great

 

[Foxfyre]

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.

Neither. "New money" is that generated by products and services people are willing to spend money for. As long as the money the government prints is backed by that kind of value, the economy is healthy and there is little inflation. When the government prints money backed by nothing, it is worthless as it dilutes and devalues the buying power of all money and inflation will be much higher..

 

[Lesh]

Neither. "New money" is that generated by products and services people are willing to spend money for. As long as the money the government prints is backed by that kind of value, the economy is healthy and there is little inflation. When the government prints money backed by nothing, it is worthless as it dilutes and devalues the buying power of all money.

Nonsense. Money created by the Fed is always created out of nothing in the form of loans.

When those loans are paid back it is “destroyed”. What’s left is the interest

It has nothing directly to do with the factors you claim. Only whether the economy is growing or shrinking

 

[Stormy Daniels]

I’m sure, but gold has held up better than any other form of money.

On what basis are you sure? The basis that governments and private individuals for thousands of years routinely devalued specie in a variety of ways, from shaving coins to debasing the metal by mixing it with junk metals?

 

[struth]

Nonsense. Money created by the Fed is always created out of nothing in the form of loans.

When those loans are paid back it is “destroyed”. What’s left is the interest

It has nothing directly to do with the factors you claim. Only whether the economy is growing or shrinking

Haha loans aren’t nothing…people, businesses, etc need loans to create something, or purchase something

Wow you are clueless…don’t you get sick of just making things up?

 

[otto105]

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.

Dude, have you never heard of the federal reserve?


Dumb and fummbeter

 

[Stryder50]

And here you promised to ignore me. I was enjoying the lack of nonsense

A rhetorical comment on my part.
As for nonsense, you have no lack of such. A glut actually.
You provide the useful fool/tool as a foil for my informative counterpoints.
I don't expect a change of mind from you, just an example of faulty thinking which I can counter for benefit of any others reading here.

 

[Lesh]

Haha loans aren’t nothing…people, businesses, etc need loans to create something, or purchase something

Wow you are clueless…don’t you get sick of just making things up?

Of course loans aren’t “nothing “ who said they were ?

Not me.

But guess what retard, before those loans are issued by the Fed, that money did not exist. And when those loans are repaid that money disappears

 

[expat_panama]

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.

Perhaps basic science isn't in short supply, but the problem is that folks don't care.

 

[Lesh]

Dude, have you never heard of the federal reserve?


Dumb and fummbeter

Of course he has. He seems to know the system well but is being cagey for some reason

 

[Oddball]

Of course loans aren’t “nothing “ who said they weee?

Not me.

But guess what retard, before those loans are issued by the Fed, that money did not exist. And when those loans are repaid that money disappears

When's the $34 trillion (and rising) getting repaid, bird brain?

 

[expat_panama]

Of course loans aren’t “nothing “ who said they weee?

Not me.

But guess what retard, before those loans are issued by the Fed, that money did not exist. And when those loans are repaid that money disappears

What baffles me is the fact that this reality is so hard for some folks to see w/ their own eyes.

 

[Lesh]

When's the $34 trillion (and rising) getting repaid, bird brain?

It’s actually repaid all the time. It gets “rolled over “

Actually we never pay down that debt … ever.

We pay only the interest on it.

Like I said before… the entire debt from WWII is still on the books… but inflation makes it a non issue

 

[Stormy Daniels]

Neither. "New money" is that generated by products and services people are willing to spend money for. As long as the money the government prints is backed by that kind of value, the economy is healthy and there is little inflation. When the government prints money backed by nothing, it is worthless as it dilutes and devalues the buying power of all money.

There's two problems with that. First of all, currency is only a fraction of the money in the economy. Second, why would high interest rates be used to combat inflation based on your explanation?