How is new money created in the economy?

[22lcidw]

Do the nurses know you have access to a computer?

I know. Anyone here that has access to political literature that is not mainstreamed can read what Fiat Currencies are and see realities. Under the income tax charter which is an amendment we are not supposed to have our taxes taken out of our checks. This was taken to judges a few times and they let the practice of taken taxes out of checks continue. Why? People paying their taxes voluntarily every three months as written in it would show what we really pay. Three pieces of legislation in a year around 1913. The Federal Reserve Act. The 16th Amendment and the 17th Amendment.

 

[ThisIsMe]

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

Doesn’t work, gold is not useable as money. Can’t buy corn dogs at the Walmarts with flakes o’ gold!

But fiat currency eventually dies..gold has, more or less, held its value over long term..as a “money” should.

 

[ThisIsMe]

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?

“I’m sure” was a response to gators comments that gold and silver can be manipulated too.

 

[Stormy Daniels]

“I’m sure” was a response to gators comments that gold and silver can be manipulated too.

He's right. It can be. 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.

 

[ThisIsMe]

The dollar has survived.

The pound has survived

The Yen has survived

The Deutsche Mark has survived

Survived? Or just hasn’t hit its endgame yet?

Also, the dollar has survived? Really? The only reason our dollar is worth anything is because it’s the world reserve currency and the petro dollar. Without those, our dollar is worthless because we are living off of credit.

The dollar hasn’t “survived”, we’ve just got it propped up and duct taped the crap out of it to hold it together.

The yen is failing :

Weak yen forces Japan to shrink historic military spending plan

The yen has lost 10% of its value against the dollar, forcing Japan to reduce its defense procurement plan, which was then-calculated to cost $320 billion.

www.cnbc.com

The pound is sliding:

The British pound just had its worst month for a year — and strategists expect a further fall

A sharp reduction in peak interest rate expectations and a weak economic outlook are weighing on the U.K. currency.

www.cnbc.com

The Deutsche Mark isn’t used anymore. They replaced it with the euro.

 

[ThisIsMe]

He's right. It can be. 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.

I don’t disagree with that, but precious metals have a better store of value. Mixing it with junk metals can easily be detected, so that’s not really an issue. Shaving coins can be detected also.

I’m not suggesting there isn’t manipulation there, but, all I’m saying is the dollar is not “money” and the entire system is a scam. In its current form, the dollar isn’t backed by anything. It’s literally just created by someone typing numbers into a computer.

 

[Lesh]

I don’t disagree with that, but precious metals have a better store of value. Mixing it with junk metals can easily be detected, so that’s not really an issue. Shaving coins can be detected also.

I’m not suggesting there isn’t manipulation there, but, all I’m saying is the dollar is not “money” and the entire system is a scam. In its current form, the dollar isn’t backed by anything. It’s literally just created by someone typing numbers into a computer.

Dollars have value because we believe they do.

Gold has value because we believe it does

It’s that simple

 

[g5000]

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 answer is "both".

The Fed increased their balance sheet by $7 trillion from 2008 to the present. I covered this a long time ago in my topic

The Fed's Bond Bubble Doomsday Machine​

​

I think at that time, the balance sheet had been increased by $4 trillion.


Next, banks.

Under Fractional Reserve Banking rules, banks are allowed to create money out of thin air when making a loan. There is a limit, but still.

What the poorly informed rubes don't know is that money is then destroyed when the principal is paid back. So you get a net zero sum of money creation.

 

[g5000]

I don’t disagree with that, but precious metals have a better store of value. Mixing it with junk metals can easily be detected, so that’s not really an issue. Shaving coins can be detected also.

I’m not suggesting there isn’t manipulation there, but, all I’m saying is the dollar is not “money” and the entire system is a scam. In its current form, the dollar isn’t backed by anything. It’s literally just created by someone typing numbers into a computer.

The idea of precious metals being a good store of value can only be stated by someone who is clueless to the volatility of commodities. Commodities are the most volatile market, second only to crypto currency.

You know why? Because during economic downturns, the holders of commodities cash them in to pay their debts and their price plunges. As does crytpo.

Nothing, and I mean NOTHING, is more stable then the almighty US dollar.

 

[Natural Citizen]

What the poorly informed rubes don't know is that money is then destroyed when the principal is paid back. So you get a net zero sum of money creation.

That's true. Paying off the principal extinguishes that portion of the debt, but the debt also extinguishes the currency. When currency and debt meet, they destroy each other, so if you we just pay off the principal only, all of the loans and Treasury bonds that exist, the entire currency supply vanishes.

That's why I'd mentioned earlier in the thread that if we don't go deeper into debt every year, the whole thing goes into a deflationary collapse under the weight of those payments.

So, then, going deeper, you basically need the taxes just to even have a monetary policy at this point.

Sad state of affairs...

 

[g5000]

That's true. Paying off the principal extinguishes that portion of the debt, but the debt also extinguishes the currency. When currency and debt meet, they destroy each other, so if you we just pay off the principal only, all of the loans and Treasury bonds that exist, the entire currency supply vanishes.

That's why I'd mentioned earlier i nthe thread that if we don't go deeper into debt every year, the whole thing goes into a deflationary collapse under the weight of those payments.

We actually need deflation, but Americans can't tolerate even the slightest bit of pain. That's why each succeeding Congress and President outspend their predecessors rather than fix the system.

 

[Natural Citizen]

We actually need deflation, but Americans can't tolerate even the slightest bit of pain. That's why each succeeding Congress and President outspend their predecessors rather than fix the system.

I don't even believe it can be fixed without letting it completely collapse, g.

 

[Stormy Daniels]

We actually need deflation, but Americans can't tolerate even the slightest bit of pain. That's why each succeeding Congress and President outspend their predecessors rather than fix the system.

Considering that deflation usually only occurs in the gravest economic conditions, and given the risk of deflationary spirals, that seems like a dangerous path that involves far more than "the slightest bit of pain".

 

[Harpy Eagle]

Survived? Or just hasn’t hit its endgame yet?

Also, the dollar has survived? Really? The only reason our dollar is worth anything is because it’s the world reserve currency and the petro dollar. Without those, our dollar is worthless because we are living off of credit.

The dollar hasn’t “survived”, we’ve just got it propped up and duct taped the crap out of it to hold it together.

The yen is failing :

Weak yen forces Japan to shrink historic military spending plan

The yen has lost 10% of its value against the dollar, forcing Japan to reduce its defense procurement plan, which was then-calculated to cost $320 billion.

www.cnbc.com

The pound is sliding:

The British pound just had its worst month for a year — and strategists expect a further fall

A sharp reduction in peak interest rate expectations and a weak economic outlook are weighing on the U.K. currency.

www.cnbc.com

The Deutsche Mark isn’t used anymore. They replaced it with the euro.

Interesting that you claim the dollar is weak, then give articles about two currencies sliding...against the dollar.

Currency is not unlike the stock market, they go up and they go down against each other, it is all part of the game. Every country is living off credit, hell the US was living off credit when it was still on the gold standard.

 

[ThisIsMe]

Dollars have value because we believe they do.

Gold has value because we believe it does

It’s that simple

Dollars have value because the world believes it does and they world uses it, but the world is starting to look at different currencies.

Gold is considered valuable the world over and likely to never not be valuable.

 

[Stormy Daniels]

Dollars have value because the world believes it does and they world uses it, but the world is starting to look at different currencies.

So explain every other currency in the world.

 

[ThisIsMe]

The idea of precious metals being a good store of value can only be stated by someone who is clueless to the volatility of commodities. Commodities are the most volatile market, second only to crypto currency.

You know why? Because during economic downturns, the holders of commodities cash them in to pay their debts and their price plunges. As does crytpo.

Nothing, and I mean NOTHING, is more stable then the almighty US dollar.

no, you are correct, no fiat currency is as strong as the dollar, that’s for sure, but our dollar is only strong because the world considers us an economic engine, trade and import/export attract investors…but, again, some countries are looking to get away from the dollar. If that happens on a large enough scale, it could spell trouble for the dollar.

Also, how can ANY fiat currency have any value when it’s not backed by anything, and is created out of thin air.

Also, why are you so averse to gold? lol

 

[ThisIsMe]

So explain every other currency in the world.

Every other currency is the same, it just so happens that the dollar is top dog right now, and likely will be for some time, I’m just saying that some countries are looking to offload their use of dollars.

 

[ThisIsMe]

Interesting that you claim the dollar is weak, then give articles about two currencies sliding...against the dollar.

Currency is not unlike the stock market, they go up and they go down against each other, it is all part of the game. Every country is living off credit, hell the US was living off credit when it was still on the gold standard.

I’m not saying the dollar is weak. Against other currencies, it is strong, but all fiat currency eventually fails was my point. Perhaps the dollar just hasn’t hit its sunset yet.

 

[Harpy Eagle]

but all fiat currency eventually fails was my point.

can you list a few of them that have failed?

I gave you few that are doing just fine, so now your turn to back up your claim they "all fail"