14 Nov 2017 11:23 am
...indago, this info you put up is sh!t...not once does this babbler clearly say that most money is created by PRIVATE COMMERCIAL BANKS/BANKSTERS...not 'the central bank' per se...[there are thousands of private commercial banks where money is created 'out of thin air']:...
"Money Emission out of the Void
This again is a very simplified scheme for the issuing of money by conventional central banks. The central or issuing banks are the only ones which are licensed to print money bills and put it in circulation. They create money out of the void and lend it out as credit in exchange for bonds or other valuables which can be redeemed with the respective amount of money. In former times the issued money was backed by gold ingots which the central bank bought and deposited in its safe. These gold ingots could be redeemed on demand by returning the issued paper notes. Since gold has a rather low utility value and the storing in private safes is not very attractive either - it doesn't earn interest there -, the demand for gold ingots was next to nul." [end bad info from indago link]
...here's some better info for republicrat monetary newbies: https://agoodhuman.wordpress.com/2009/0 ... s-created/
"Economy #1: How Money is Created
This is the first post in my World-Changing Wednesday series. Tune is each Wednesday to read my thoughts on an issue which I think will have a huge impact on how we live our lives in the years to come.
This week, I’m going to talk about how money is created. If you are anything like me, you’ve probably never even given this topic a second thought. In hindsight, this attitude might have been a little crazy given that most of us live our lives in pursuit of money. In our culture we’ve been taught that money buys us happiness. Without consciously choosing to do so, we’ll seek riches as a means of fulfillment and in the process we’ll put the earning of money above all other pursuits. However once you understand the nature of money, you may think twice about its relative value.
Where does money come from?
Most people imagine that the government makes money. Indeed the coins and paper we usually consider to be money are produced by a government agency known as the mint, but the vast majority is created by private corporations known as banks.
Most of us probably think that banks lend out money that they have on deposit from peoples’ savings, but this is not the case. The banks simply create money out of thin air, based on the borrower’s promise to pay. The borrower agrees to pay back the money loaned to them, plus interest and if they don’t they will forfeit their collateral (i.e. car or home).
So, for that big commitment made by the borrower, you’d think there would have to be some sort of large commitment on the banks behalf, wouldn’t you? In fact, all the bank needs to do in this exchange is to conjure out of thin air, the amount of the loan and write it into the borrowers account. So you’re now thinking, ‘Surely this can’t be true?’ But it is.
Money is loaned into existence.
Let me try to explain. If it takes you a couple of reads to get this, don’t worry. I’ve been there. It’s actually a pretty simple process, but it is difficult to accept. The following explanation applies to the process in the USA, but the system is similar in all industrialised nations..."
...[LOOOOOOOOOOONG PAST TIME TO WAKE UP, REPUBLICRATS!]
