How is new money created in the economy?

[Stormy Daniels]

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.

 

[Mikeoxenormous]

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.

So you have no idea what creates new money?

First there are products that are made that people want, so a price is paid for said product.
Then there is labor required to make that product so people earn the wages for the creation of that product.

This is how the government can figure out the GDP. Right now the money printed greatly outweighs the earned money. That is because people on welfare who get free shit, never earned that money so there is nothing backing that dollar. Do you understand? When the dollar was bound by the ounce of gold, the government couldnt print more than it had in the depository....

Gross Domestic Product.

126.23%
The U.S. debt to GDP ratio is a measure of how much the federal government owes compared to the size of the economy. In 2020, the U.S. debt to GDP ratio was 126.23%, meaning that the government debt was larger than the annual economic output1. This was a significant increase from 2019, when the ratio was 100.81%1. Another way to measure the U.S. debt is to include all types of debt, such as household, business, and state and local government debt. In this case, the U.S. total debt to GDP ratio was 895.4% in 2020, the highest level ever recorded2.

 

[eagle1462010]

Fractional banking the Fed Back Door

 

[Stormy Daniels]

First there are products that are made that people want, so a price is paid for said product.
Then there is labor required to make that product so people earn the wages for the creation of that product.

Hoe boy. facepalm Imma need a sandwich first.

 

[Stormy Daniels]

Fractional banking the Fed Back Door

How so?

 

[eagle1462010]

How so?

Google Fractional Banking and how it works

 

[Stormy Daniels]

Google Fractional Banking and how it works

I know how it works. I'm asking how it's the "Fed back door".

 

[ThisIsMe]

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 treasury needs an influx of cash so they send IOU’s to the federal reserve who then create “money” out of thin air and send to the treasury which then loans that money to banks which then use a process called fractional reserve lending.

It’s all a scam

A pretty good explanation here:

 

[Mikeoxenormous]

Hoe boy. facepalm Imma need a sandwich first.

Walter Williams on Capitalism | Walter E. Williams

The only moral system is one that protects individuals from coercion by other individuals. FEE has been dedicated to this fundamental truth since its founding.

fee.org

 

[Oddball]

It's all right here....

Secrets of the Temple: How the Federal Reserve Runs the…

William Greider’s groundbreaking bestseller reveals how…

www.goodreads.com

The Creature From Jekyll Island (PDF) - 15.66 MB @ PDF Room

The Creature From Jekyll Island - Free PDF Download - 315 Pages - Year: 2012 - Read Online @ PDF Room

pdfroom.com

 

[ColonelAngus]

Both are true, but the latter is way more significant. We are in the hangover of QE.

 

[gipper]

They print it. Yippee!

 

[ThisIsMe]

This guy has a whole series of videos that are pretty enlightening. I’m currently watching the first episode that discusses the difference between money and currency.

One thing that came to mind is that, in his describing money as a store of value, and currency is not, plus, while money (gold and silver) generally has less fluctuation in value, currency can change in value rapidly, and it can be manipulated by how the world economy works. Influences from around the world can affect the value of currency.

When you think about this, it’s a very disturbing thing, because that currency is a representation of your labor, so when the currency drops in value, you are still working as hard as you used to, so the value of your labor to the company stays the same. And while the company you are producing for can increase their prices to compensate for this decrease in value of currency, YOU do not get added compensation from your company for your time to keep you in the same lifestyle. So what ends up happening is that even though you are working for the same amount of currency, the value of that currency can drop, and thus your purchasing power, that you exchanged for your labor, decreases as well, so you essentially end up working the same, for less.

Then, as the government borrows more money, you as the worker gets taxed more. A company can just increase prices to help compensate for raises in taxes, and they can pass all of their regulatory fees and such, on to the customer in the form of building those costs into the price of goods.

At the end of the day, it’s US as the workers, who get screwed by this system. As the guy said in the video, the whole system is a form of bondage, it keeps us from truly being free because the only thing you have of value is your time and freedom, and the government has found a way to regulate that away from you, by keeping people bound to the system.

 

[Eric Cartman]

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.

like this:

Trump signs historic $2 trillion stimulus after Congress passes it Friday

President Donald Trump signed into law Friday afternoon a historic $2 trillion stimulus package as the American public and the US economy fight the devastating spread of Covid-19.

amp.cnn.com

 

[sparky]

This is how the government can figure out the GDP. Right now the money printed greatly outweighs the earned money. That is because people on welfare who get free shit, never earned that money so there is nothing backing that dollar. Do you understand? When the dollar was bound by the ounce of gold, the government couldnt print more than it had in the depository....

To my reading we've been on/off the gold standard now since Nixon was in office

Any fiat system depends on valuation, and valuation is historically connected to something of value in the physical world

Petro coming to mind.....

simplistic , but i like simple.....

~S~

 

[westwall]

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.

None of the above.

 

[Stormy Daniels]

The treasury needs an influx of cash so they send IOU’s to the federal reserve who then create “money” out of thin air and send to the treasury which then loans that money to banks

Except that doesn't happen.

The Federal Reserve does not buy bonds from Treasury, it conducts the auctions for new Treasury bonds. And Treasury does not loan money to banks, banks loan money to Treasury through the purchase of Treasury bonds.

Everything you're saying is exactly backwards.

 

[westwall]

Except that doesn't happen.

The Federal Reserve does not buy bonds from Treasury, it conducts the auctions for new Treasury bonds. And Treasury does not loan money to banks, banks loan money to Treasury through the purchase of Treasury bonds.

Everything you're saying is exactly backwards.

Nor does the Fed actually create wealth. It transfers wealth, that's all.

 

[Stormy Daniels]

Nor does the Fed actually create wealth. It transfers wealth, that's all.

Who said anything about creating wealth? This thread is about creating new money in the economy. I can save a million dollars simply by being frugal, and thereby create wealth for myself. But that doesn't add money to the economy.

Oh why am I bothering with you? You're one of the most idiotic people around here.

 

[westwall]

Who said anything about creating wealth? This thread is about creating new money in the economy. I can save a million dollars simply by being frugal, and thereby create wealth for myself. But that doesn't add money to the economy.

Oh why am I bothering with you? You're one of the most idiotic people around here.

New money is wealth. Or are you merely talking about the printing of money, not the creation of wealth?

And I'm not the one sporting an avi of a porn star.

That would be you, idiot.