Where does money come from ?

[Mexicano]

Money is a human creation. It is used to perform transactions and as a store of value.
It has two forms : as bill and coins ( narrow money) and as records in financials institutions( broad money).
So a couple of key questions are:
Where does the money come from?
What determines how it is allocated once it is created?

 

[Toddsterpatriot]

Money is a human creation. It is used to perform transactions and as a store of value.
It has two forms : as bill and coins ( narrow money) and as records in financials institutions( broad money).
So a couple of key questions are:
Where does the money come from?
What determines how it is allocated once it is created?

Where does the money come from?

The Fed can create it.
Bank loans can create it.

What determines how it is allocated once it is created?

Did you sell something to the Fed? Did you borrow from a bank?
Did you sell something to someone who sold to the Fed?
Did you sell something to someone who borrowed from a bank?
Rinse and repeat.

 

[Votto]

Where does the money come from?

The Fed can create it.
Bank loans can create it.

What determines how it is allocated once it is created?

Did you sell something to the Fed? Did you borrow from a bank?
Did you sell something to someone who sold to the Fed?
Did you sell something to someone who borrowed from a bank?
Rinse and repeat.

It's easier just to print it in your basement.

Just say'in.

 

[Mexicano]

Where does the money come from?

The Fed can create it.
Bank loans can create it.

What determines how it is allocated once it is created?

Did you sell something to the Fed? Did you borrow from a bank?
Did you sell something to someone who sold to the Fed?
Did you sell something to someone who borrowed from a bank?
Rinse and repeat.

There is another one: interest on bonds.
So
... if firms and households pay their debts, the amount of money decreases.
... if the government pays its debts, the amount of money decreases.
You can't really get rid of debt you can only manage it so that it keeps a proportion with respect to gdp.

 

[Toddsterpatriot]

There is another one: interest on bonds.
So
... if firms and households pay their debts, the amount of money decreases.
... if the government pays its debts, the amount of money decreases.
You can't really get rid of debt you can only manage it so that it keeps a proportion with respect to gdp.

There is another one: interest on bonds.

Not really.

... if firms and households pay their debts, the amount of money decreases.

Yes. So what?

if the government pays its debts, the amount of money decreases.

Government bonds aren't part of M2.

You can't really get rid of debt

So what? Who said you should?

 

[expat_panama]

Money is a human creation. It is used to perform transactions and as a store of value.
It has two forms : as bill and coins ( narrow money) and as records in financials institutions( broad money).
So a couple of key questions are:
Where does the money come from?
What determines how it is allocated once it is created?

Actually, money has a couple of other functions besides medium of exchange and store of value. It's also a unit of account (how much is that worth?) and it's also standard of differed payment (there's still an amount outstanding on the loan).

Most money is created by banks when they make loans (a bank can have $3M in deposits on demand and STILL loan out some of it hoping not all depositors will all want their money on the same day). The people who get the money are those in circulation --everyone gets paid some money and everyone spends some money.

 

[Natural Citizen]

Where does the money come from?

The Fed can create it.
Bank loans can create it.

No, that's currency.

Currency is not money.

You're talking about a claim check on an IOU.

That's not money. And it's disinformation to refer to it as money.

Money has to be a store of value to actually be considered money.

That's the problem with you guys who are trustees in central economic planning by a central bank. You guys don't know the difference between money and currency. Which is why the country is in the mess that it's in.

 

[sparky]

No, that's currency.

Currency is not money.

You're talking about a claim check on an IOU.

That's not money. And it's disinfrmation to refer to it as money.

Money has top be a store of value top actually be money.

Thats the problem with you guys who are trustees in central economic planning by a central bank. You guys dont lknow the difference between money and currency.

I was hopin' you'd be in on this Natural one! ~S~

 

[Natural Citizen]

I was hopin' you'd be in on this Natural one! ~S~

Ha. I'm not hangin around, though, Sparky. I'd just be repeating the same thing I and others have been repeating for years.

 

[Toddsterpatriot]

No, that's currency.

Currency is not money.

You're talking about a claim check on an IOU.

That's not money. And it's disinformation to refer to it as money.

Money has to be a store of value to actually be considered money.

That's the problem with you guys who are trustees in central economic planning by a central bank. You guys don't know the difference between money and currency. Which is why the country is in the mess that it's in.

Money is any item or medium of exchange that is accepted by people for the payment of goods and services, as well as the repayment of loans.

You're talking about a claim check on an IOU.

How is this ^ a claim check on an IOU?

Money has to be a store of value to actually be considered money.

My $20 stores value well enough.

 

[Toddsterpatriot]

I was hopin' you'd be in on this Natural one! ~S~

He's always good for a chuckle.

 

[miketx]

What determines how it is allocated once it is created?

Magic.

 

[ActionJackson]

Money is a human creation. It is used to perform transactions and as a store of value.
It has two forms : as bill and coins ( narrow money) and as records in financials institutions( broad money).
So a couple of key questions are:
Where does the money come from?
What determines how it is allocated once it is created?

“Money” is supposed to represent real wealth. Land, resources, precious metals, tangible & useable goods, manufacturing & production, etc., are a better barometer of wealth than a stack of paper bills is.

 

[Natural Citizen]

View attachment 800585


How is this ^ a claim check on an IOU?

The Federal Reserve and the Treasury are just swapping IOUs and using the banks as middle men to spring currency into existence.

As such, there is always more debt in the system than there is currency.


This is money...

But your brood shut that down for good in the early 70s.

Ya counterfeiting scoundrels....

 

[Orangecat]

Money is a human creation. It is used to perform transactions and as a store of value.
It has two forms : as bill and coins ( narrow money) and as records in financials institutions( broad money).
So a couple of key questions are:
Where does the money come from?
What determines how it is allocated once it is created?

Money is created by governments to facilitate trade. It comes from a desire to store value in a mutually agreed upon vehicle that is both easy to carry and difficult to counterfeit.

 

[Toddsterpatriot]

The Federal Reserve and the Treasury are just swapping IOUs and using the banks as middle men to spring currency into existence.

As such, there is always more debt in the system than there is currency.


This is money...

But your brood shut that down for good in the early 70s.

Ya counterfeiting scoundrels....

The Federal Reserve and the Treasury are just swapping IOUs and using the banks as middle men to spring currency into existence.

My $20 isn't an IOU.

As such, there is always more debt in the system than there is currency.

So what?

This is money...

Where do you turn it in for gold coin?

 

[expat_panama]

No, that's currency.

Currency is not money.

You're talking about a claim check on an IOU.

That's not money. And it's disinformation to refer to it as money.

Money has to be a store of value to actually be considered money.

That's the problem with you guys who are trustees in central economic planning by a central bank. You guys don't know the difference between money and currency. Which is why the country is in the mess that it's in.

ah, you have your own private definition of money and currency --super! Meanwhile most people define money in a way that includes currency as one of other kinds of money.

As far as government control of money goes, that's how most folks prefer it and unless something is generally accepted as money it can't be money. This is neither right nor wrong, it just is and it's what we've got to work with.

 

[Blues Man]

Money is a human creation. It is used to perform transactions and as a store of value.
It has two forms : as bill and coins ( narrow money) and as records in financials institutions( broad money).
So a couple of key questions are:
Where does the money come from?
What determines how it is allocated once it is created?

Money is basically a fiction.

 

[Natural Citizen]

ah, you have your own private definition of money and currency --super! Meanwhile most people define money in a way that includes currency as one of other kinds of money.

I just happen to know what I'm talking about.

What ''most people'' think is of no relevance to the facts of the matter.

 

[Natural Citizen]

Most money is created by banks when they make loans (a bank can have $3M in deposits on demand and STILL loan out some of it hoping not all depositors will all want their money on the same day). The people who get the money are those in circulation --everyone gets paid some money and everyone spends some money.

^^ And this lazy attempt at an explanation of how things work is about as deep as a mud puddle. ^^