I think we're all in agreement that wealth is created, and is not a finite resource. But where does physical paper money enter circulation? I always hear people talking about the government printing money, but at which specific point does it go from printing press to private citizen?
Where does money come from?
Blake Cooper
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Aaron Fisher
Bump for knowledge.
Kayden Moore
That's actually a really good question. I just assumed they sent the money out to certain banks that just carried the notes...but at the same time that doesn't entirely make sense.
I want to know now too, damnit.
Gabriel Sullivan
>this thread
Stop embarassing America and read nigger
Colton Gutierrez
(((federal reserve))) in your case
Kevin Green
Yeah but do they just give it out? Do you hand in precious metals in exchange for money? WHERE DOES IT COME FROM
Michael Nelson
They mail gibs in the form of checks to the parasite class
Kevin Thompson
I've always had a question I'm afraid to ask.
I know that the government can't just print endless amounts of money because that would cause inflation, but can't the government just print lots of money and spend it on its own projects? Wouldn't that prevent it from entering circulation and causing inflation since it's staying within the government and its agencies?
>inb4 brainlet
Anthony Cruz
modern money is literally debt youtube.com
if all the people pays his debt there will no more money
Caleb Carter
somebody call /biz/
Kayden Gray
oh shit, virgins, hjahahahahah prepare to become nazis
Luke Miller
>you hand in precious metals in exchange for money
That was before (((they))) decide imprint money by debt, so they give you (((money))) which is speculative and not concrete and you be a good goy and give them your hours of work and goods wich are the real valuable thing
Samuel Sanchez
Money enters circulation when (((they))) print it then they pay wahabis for their oil. We get it back when the goatfuckers buy arms from us
Dominic Collins
The federal reserve prints money and loans it to banks. This is how they inject money into the economy.
The federal reserve also sells bonds to banks in exchange for cash. This is how they siphon money out of the economy.
At least, that's what they told me in (((economics class)))
Oliver Ortiz
>print money for government project
>pay cianigger to feed lsd to cats
>cianigger goes home and buys milk
Whoops, that money went back into the economy
James Bennett
it literally doesn't exist. only 8.3% does according to this wesbite reccomeanded by google. that 8.3% is probably distributed mostly to drug and human traffickers in the nyc/dc areas
quora.com
quora.com
Andrew Diaz
Perfect video for the question. Thank you
Lincoln Cooper
Money is debt and there are multiple stages at which it is created.
At the first stage, the (((federal reserve))) creates it and then either
- loans it to banks (at say 1%), which (((they))) loan back to you (at say 4%)
- buys U.S. treasuries and the U.S. government uses the income to pay the federal workers/contractors
At the second stage, even more money(debt) is created when you take out a loan.
The rate at which the federal reserve loans money, or alternatively how much treasuries it buys:
en.wikipedia.org
The amount of money created at stage 1:
en.wikipedia.org
The amount of money created at stage 2:
en.wikipedia.org
Notice the rise in monetary base between 2008 and now.
David Nguyen
Keep in mind banks borrow X dollars from Fed, and are allowed to loan out 9X dollars to plebs.
Sebastian Adams
fractional reserve and the fed
banks create it out of thin air
Jaxson Young
Rehypothecation on gold reserves.
Bentley Watson
The Fed (Federal Reserve) assesses the demand for hard currency
The Fed orders physical production of notes and coins from the Mint
The Mint delivers currency to The Fed
The Fed “sells” the currency to the US Treasury at a rate of around $0.02 per dollar (this is important and we’ll get to that in a sec)
The Treasury disburses currency to private banks based on their demand
Old currency is given back and retired (notes moreso than coins)
Currency enters circulation when withdrawals are made from banks
Now, The Fed sounds like a governmental organization but it’s much more than that. The US government (and by extension, the citizens) are forever indebted to The Fed because they have charged us two cents for every dollar ever minted. But we aren’t really “buying” the currency, because it’s currency. Think of it more as points on a loan. They loan us the dollar and charge two points on top. So every $1.00 that enters circulation, from the moment it’s loaned to us, actually represents $1.02 of value. This is what causes inflation to rise at a steady, predictable rate and allows for the creation of “new wealth” from what was previously nothing, as The Fed can take the perpetual debt it is owed and use it to leverage monetary transactions worldwide. With a gold-backed system like the US had prior to the Great Depression, new wealth could only truly be created if new gold was added to the reserve. With this system, The Fed creates something from literally nothing. It’s economic alchemy.
Nicholas Kelly
>I think we're all in agreement that wealth is created, and is not a finite resource. But where does physical paper money enter circulation? I always hear people talking about the government printing money, but at which specific point does it go from printing press to private citizen?
Department of treasury asks the federal reserve syndicate for a loan, federal reserve syndicate authorizes department of treasury to print paper with ink in a specific pattern.
Federal reserve bank loans money to it's member banks, who loan it to you.
Zachary Mitchell
Its fiat currency, it isn't backed by anything but the belief that it has value. Its worth whatever you can convince someone to give you for it.
William Moore
As an addendum, when you hear people call for “Auditing The Fed” what they are really asking for is a summary of their transactions - what they have used the debt owed to them by the Treasury for. The Fed, using the International Monetary Fund as an intermediary, loans this debt to other countries’ central banks as backing for their own currencies. Because the debt only grows larger as time goes on, they wield complete and unchecked influence over the world economy. This is why they do not allow themselves to be audited, doing so would reveal their inner workings and could possibly unravel the very fiber of international trade.
Carson Richardson
Khazarian Money Magick
Gavin Gonzalez
Basically, yeah it’s magic. A man tells you a piece of paper holds a certain value and you believe it, because everyone else also believes it.
On a micro scale, a dollar is “worth” something because a person can trade it for food, clothes, housing, etc.
What a dollar REALLY is though... it’s just a promisary note, a physical representation of debt owed. Back in the day, if the shit hit the fan and you weren’t satisfied with the pact you had entered, you could bring it to any bank and receive it’s value in gold. Nowadays, you’re just holding a small piece of the check the government owes the magical money factory, and what do they reccomend you do with it? Invest! Put it back in the system, let it float around and spur more economic growth, and increase the debt the government owes to The Fed.
Brandon Hill
I worked at the Federal Reserve East Rutherford Operations Center, biggest bank vault in the world, 1/2 million square ft. You can drive by every day and not even know it's there as it's underground. It's the biggest cash warehouse in the world.
AMA
Michael Butler
The money is printed by the US Treasury BEP and is sent to EROC to be warehoused. The banks then take delivery based on request and it's delivered via plane and armored car. The excess deposits go to the local Fed branch, are put in pallets and sent to EROC to be scanned and inventoried. Every single note in the money supply that goes through a bank is recorded. The old or damaged notes are shredded and disposed of, and the cycle repeats.
Isaac Sullivan
Xavier Green
money comes from bitcoin
William Davis
Duh ya dummy, It comes from big brother.