How does money work? What is a bank? What is the Fed? The government prints the money and then collects it as taxes...

How does money work? What is a bank? What is the Fed? The government prints the money and then collects it as taxes. . .WTF?

Other urls found in this thread:

en.wikipedia.org/wiki/Inflation
youtube.com/watch?v=_syDOz1NIrw
youtube.com/watch?v=SKnF1HEUwuo
youtu.be/jqvKjsIxT_8
youtube.com/watch?v=2RScc2jH3jM
youtube.com/watch?v=NeWY-beyt50
youtube.com/watch?v=9A2OCMZYWBY&t=45s
youtube.com/watch?v=UrJGlXEs8nI
youtube.com/watch?v=GJ4TTNeSUdQ
twitter.com/NSFWRedditImage

Burger education here boys.

Google.

Think about it. especially my last question. the government makes the money and then collects it back as taxes. it doesnt make any sense

en.wikipedia.org/wiki/Inflation

By the way you shouldn't ask for easy stuff you can google yourself.

its not easy stuff tho

at least not for me

I make it simple. Money is just paper, cheap metal and digits in computers.
The state guarantees its value by storing gold. If the state owns gold for a value of 100 and makes 100 "money", they worth 1 each. If the state needs money and print 10 more "money", they don't worth 1 each but about 0.9.
I can't make it easier than this.

i thought the gold standard was abandoned last century

Copypasta this for posterity if needed.

1) US Government needs money. The Treasury sells bonds (a loan to US govt) that pays interest to holder.

2) Fed buys such bonds. How much it buys determines total money supply and interest rate.

3) We no longer have Gold standard and instead have Fiat currency. Fiat means by decree. The US dollar has value because it is recognized and the government says so. Some may also argue that it is backed by oil on top of US government credit, but that will be another topic.

4) Taxes are collected to service the debt, paying the interest and principle etc. It'll borrow more money to pay if needed, so it's like a never ending cycle and a pyramid scheme.

what is money tho

money is what you use to buy things

That's what it does, not what it is.

ok but what is really? on a deeper level than the surface definition.

That's all it is.

A dollar is a promise that the person holding it is owed an item value equal to the money value that the dollar represents.

In a communist paradise, that translates to "hour worked". There's some direct relationship between money and time.

It's impossible to really answer your question because it isn't specific enough.

Money is the mathematical and symbolic representation of the value of material production in a society. When you work you help "produce" goods and services (you transform matter from a less useful form into a more useful form to humanity) that is added value you gave to matter. The market value (what it costs in money) is given by forces of scarcity (supply and demand of you product), which means that the more scarce something is, the more value it has ceteris paribus.
Money is not paper, nor coins. You can print more papers and make more coins but if you aren¡t producing value for a society prices will go up accordingly and the economy will show you nothing has really changed. To grow money you need to either produce more or produce more efficiently, bcause money is just the value of production.

>How does money work?
youtube.com/watch?v=_syDOz1NIrw
>What is a bank? What is the Fed?
youtube.com/watch?v=SKnF1HEUwuo
>The government prints the money and then collects it as taxes. . .WTF?
Your government borrows their money from the Federal Reserve with interest.

Money is a mass consensual delusion, it's value even more so.

>That's all it is.
What's a bicycle? You ride it around.

>What is an idea?

It's the thing you think of


Physical objects are different than pure concepts. Money is a pure concept. It's nothing more than it's dictionary definition.

It's just a bunch of digits in a computer file.

youtu.be/jqvKjsIxT_8

youtube.com/watch?v=2RScc2jH3jM

Fuck off you teenage faggot.

it was, it is now oildollars.

money is fake.

A store of value
A medium of exchange

Rather than trade chickens or other goods for soy lattes, we echange dollars.

They print money that is worthless paper.
Then they borrow or tax it into existence.
does that make sense?

youtube.com/watch?v=NeWY-beyt50

Money's not really fiat. In the sense it not backed by gold. Fine.

What really gives money value in this sense is economic output. GDP. Credit is based on these metrics and modern money is really just credit.

There are a ton of other factors like the petro dollar and interest rates which help prop it's value but really at the end of the day the USD isn't backed by the fed government. It's backed by the degree/rate of economic activity.

If that ceased to be... there would be nothing. No value.

People never refer to this but it's the truth. Unspoken. Not studied. But the truth.

Modern economic system.

I said that. In item #3.

Because time and resources are not unlimited, we need a way to ration goods and services. This is what the price system does. Land, labor, and capital set the value of goods and services.

We use money instead of bartering, because it's easier to transport an item with value rather than transporting, for example, 10 cows. Additionally, if a person wants to exchange 10 chickens for 10 ducks, but you don't have 10 ducks, you cannot barter. However, if you have money, you can now buy the 10 chickens and the chicken owner can use the money to buy 10 ducks. Everyone was able to make their wants fulfilled.

now while what OP says is bait, it does make you think. The value of the dollar is just what we put it in and is easily threatened by fixed economies like the bit coin. There is no tie to a standard with money and even banks can loan out 10 times the amount of money than they even have on them. A lot of shit is digital and we are constantly selling bonds to pay off interest on bonds we sold to other contries to other contries to buy our bonds and we just continue this circle jerk hoping no one gets woke.

Well fellow burger... thanks for the sharts up on that.

Government does NOT print the money. The fed is not a government organization. And of course they tax it dipshit, thats how fiat currency gets its value.

youtube.com/watch?v=9A2OCMZYWBY&t=45s

are you 10 years old or something? Mods, ban this idiot for being underage please.

A problem with (((banks))) is fractional reserve banking.

A bank needs to hold, classically, 10 percent of reserves.

The bank can then loan out 90 percent of your money held by the bank.

(((They))) use your money to make (((themselves))) money.

The problem is, this process is repeated several times with your initial deposit.

Image is an example.

The $100 deposited, turned into $457.05, which $357.05 doesn't actually exist.

The major problem with this is a bank run. When people try to withdraw their money, it collapses the ponzi scheme because $357.05 doesn't actually exist. So the FDIC has to come in and rescue the ponzi scheme with FED printed money.

The US mostly abandoned the gold standard in 1933 when FDR signed an executive order requiring people to turn in their gold for $20.67/oz. It then devalued the dollar to $35/oz. In 1971, Nixon closed the gold window to CBs and governments, and that was the end of the gold standard for the US and the world.

topkek

This is why they think about hellicopter money

this will explain it all OP.

youtube.com/watch?v=UrJGlXEs8nI

you are never going to understand it reading Sup Forums because people often have a wrong and conflicting view of monetary economics

Why are banks allowed to make money out of thin air i.e. loan out 90% of deposits?

It's how they make money to operate and offer services, like free savings and checking accounts.

afai understand the fed loans your gov something, taxes on which are then collected by the irs

since the fed is a private entitiy this is basically a robbery

Sup Forums does not understand what money is

kids at 5 years old, why not print more money?

youtube.com/watch?v=GJ4TTNeSUdQ

It allows people to borrow money and start new businesses.

It's just made up BS to make people feel stupid and have faith in authority. Same thing with Scientology, freudianism, quantum mechanics, ohm's law etc.

>It's just made up BS to make people feel stupid

This. Nobody really has any idea how it works. Banksters and Jews make it up as they go along.

How dare you insult ohm's law?!

money makes the world go round

>How does money work?

Money works as a "means of exchange" divided into "units of account" like dollars for ex. Money is something universally valued (like gold/silver) and then you want something like some food? You offer the farmer something he wants (silver) for some food. You just made a 'voluntary exchange' using money, and both sides consider they are better off after the exchange was made. Farmer got the silver he wants, and you got the food you want.

>The government prints the money and then collects it as taxes. . .WTF?

Government collects the money back from us, to remind us we are slaves, and to keep the value of the 'dollars' up, so to speak. If the government didn't recall a large portion of the money supply, "taxes" the money would inflate, and the value would go down too quickly.

>Print the money for themselves
>Steal the money you actually worked for, from you

Yeah that's how government works.