18 Dec 2017 10:19 pm
Money is produced by the central bank...in the US this is the federal reserve...https://en.wikipedia.org/wiki/Open_market_operationpeepee » 18 Dec 2017 9:35 pm » wrote:charles.thompson » 18 Dec 2017 4:16 pm » wrote:Id hate to burst your bubble, but you are not in my league on this.
...thank god!!...because you're a little leaguer who doesn't even understand the money-creation process...BELOW IS SOME MORE EVIDENCE THAT 'OUR' MONEY IS CREATED IN THE PRIVATE COMMERCIAL BANKING SYSTEM THROUGH A FRAUD I CALL 'FRACTIONAL RESERVE DEPOSIT CREATION'...OBVIOUSLY YOU DISAGREE WITH ME ABOUT HOW MONEY IS CREATED, SO CAN/WILL YOU EXPLAIN HOW MONEY IS CREATED?!...I'VE PROVIDED A LOT OF EVIDENCE HERE AT THE FABULOUS 'PEEPEE ON MONEY' BUT I'VE SEEN NOTHING FROM YOU EXCEPT **** I HEAR FROM OTHER REPUBLICRAT MONETARY IGNORAMUSES...
...You have nothing but mouth, republicrat-level dummy...PLEASE CRITIQUE THE FOLLOWING VERY SHORT VIDEO FROM RESPECTED 'POSITIVE MONEY' WHICH EXPOSES YOU AGAIN AS AN IGNORAMUS ABOUT MONEY CREATION:...
https://www.youtube.com/watch?v=01IusDeSPE4
“I am afraid that the ordinary citizen [esp. republicrat-level money dummies like charles] will not like to be told that the banks can, and do, create and destroy money. And they who control the credit of a nation direct the policy of governments, and hold in the hollow of their hands the destiny of the people. (widely attributed to reginald mckenna)
"In the United States, as of 2006[citation needed], the Federal Reserve sets an interest rate target for the Federal funds (overnight bank reserves) market. When the actual Federal funds rate is higher than the target, the New York Reserve Bank will usually increase the money supply via a repo (effectively borrowing from the dealers' perspective; lending for the Reserve Bank). When the actual Federal funds rate is less than the target, the Bank will usually decrease the money supply via a reverse repo(effectively lending from the dealers' perspective; borrowing for the Reserve Bank).
In the U.S., the Federal Reserve most commonly uses overnight repurchase agreements (repos) to temporarily create money, or reverse repos to temporarily destroy money, which offset temporary changes in the level of bank reserves.[4] The Federal Reserve also makes outright purchases and sales of securities through the System Open Market Account (SOMA) with its manager over the Trading Desk at the New York Reserve Bank. The trade of securities in the SOMA changes the balance of bank reserves, which also affects short-term interest rates. The SOMA manager is responsible for trades that result in a short-term interest rate near the target rate set by the Federal Open Market Committee (FOMC), or create money by the outright purchase of securities.[5] More rarely will it permanently destroy money by the outright sale of securities. These trades are made with a group of about 22 banks and bond dealers called primary dealers.
Money is created or destroyed by changing the reserve account of the bank with the Federal Reserve. The Federal Reserve has conducted open market operations in this manner since the 1920s, through the Open Market Desk at the Federal Reserve Bank of New York, under the direction of the Federal Open Market Committee. The open market operation is also a means through which inflation can be controlled because when treasury bills are sold to commercial banks these banks can no longer give out loans to the public for the period and therefore money is being reduced from circulation."