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The Federal Reserve DOES NOT create money out of thin air.

 
Ben Bernanke
User ID: 413045
United States
09/21/2008 11:30 PM
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The Federal Reserve DOES NOT create money out of thin air.
Every dollar printed is backed by collateral- that collateral being a US treasury bond which is sold off by the federal reserve to a buyer like your grandma, China, a pension fund, etc.

That means every dollar is borrowed and has to be paid back with interest. How do we pay it back? With your tax dollars. 100% of your federal income taxes goes to pay these bond holders back. NONE of your taxes goes to fund the govt. or the military.

That's how it works, you dumb debt slave. So you think about that.
Ben Bernanke (OP)
User ID: 413045
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09/21/2008 11:44 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Personally, I would like to set up a new Bank of the United States and sell the treasury bonds to YOU. You pay for them with the payroll taxes you pay. Then, through the miracle of fractional reserve lending, using those bonds as collateral, we can monetize the bonds 12 to 15 times their value and lend those funds out with the interest earnings flowing back to YOU. You could continuously reinvest those earnings back into the system and compound it. It would create wealth for you and you could retire by the time you were 50, and comfortably so.
Anonymous Coward
User ID: 490531
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09/21/2008 11:47 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Two words: Fractional Reserves.
Arboriel

User ID: 334323
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09/22/2008 12:05 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Except the interest is not printed!
"And though I believe in the ineffable glory of God, and though I might have experienced the undeniable reality of the Deity, and though I may know the secrets of the ages, these do not fulfill the Love in my heart. But to Change and Be and Do and dissolve both the subject of my person and the object of my God into the fluency of Empirical Providence. The Way, the Truth, and the Life."
Anonymous Coward
User ID: 422179
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09/22/2008 10:21 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Where does the treasury bond come from? What sets its value? What is that bond backed by?
Anonymous Coward
User ID: 69144
United States
09/22/2008 10:22 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
bsflag bsflag bsflag
Anonymous Coward
User ID: 487325
United States
09/22/2008 10:28 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
they can make money whenever they want.....stoopid OP.
Anonymous Coward
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09/22/2008 10:38 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Hello sexy man
Linzartart

User ID: 476887
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09/22/2008 10:43 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
2 words........printing press
I have no sense decency! That way, my other senses are enhanced!

I'm a pragmatist, everyone's an asshole but me.
Anonymous Coward
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09/22/2008 10:43 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
bsflag bsflag bsflag
 Quoting: Anonymous Coward 69144



um,, its really sad, but its true
Anonymous Coward
User ID: 496050
Canada
09/22/2008 10:56 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Every dollar printed is backed by collateral- that collateral being a US treasury bond which is sold off by the federal reserve to a buyer like your grandma, China, a pension fund, etc.

That means every dollar is borrowed and has to be paid back with interest. How do we pay it back? With your tax dollars. 100% of your federal income taxes goes to pay these bond holders back. NONE of your taxes goes to fund the govt. or the military.

That's how it works, you dumb debt slave. So you think about that.
 Quoting: Ben Bernanke 413045



Hey Ben, why don't you tell the good folk that the "money" is actually backed by the bond on THEIR BIRTH CERTIFICATE; that you're using THEIR CURRENT AND FUTURE LABOUR AS COLLATERAL.

Yes, people: YOU ARE THEIR COLLATERAL. So not only are YOU paying for THEIR mistakes with your tax money (and ALL of that cash is going to pay off the interest to the Federal Reserve -- a PRIVATE CORPORATION), YOU are the ONLY card they have.

Are YOU going to continue to let that happen???
Anonymous Coward
User ID: 496050
Canada
09/22/2008 10:57 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Benny, why don't you also tell these fine folk how THEIR SIGNATURE creates the funds you need??

Since YOU are their collateral via your BIRTH CERTIFICATE "corporation" (which it IS), when you sign for something, THAT IS THE PAYMENT.

YOUR signature creates the funds since YOU are THEIR collateral.

For those who still care about the political dogshow going on, are you waking up NOW???
Kanigo2

User ID: 442313
United States
09/22/2008 11:04 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Every dollar ---is printed.,


Then a treasury bond is sold.



Can I ask anyone a question??

Who is going to buy a trillion dollars in bonds?

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Anonymous Coward
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09/22/2008 11:19 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
496050; well said. The ENERGY of live people is the true VALUE, therefore said people are the creditors. The signature is the MONEY. Learn to use it.
Skipper

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09/22/2008 11:24 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
2 words........printing press
 Quoting: Linzartart


Now that we know the Federal Reserve is a privately owned, for-profit corporation, a natural question would be: who OWNS this company? Peter Kershaw provides the answer in "Economic Solutions" where he lists the ten primary shareholders in the Federal Reserve banking system.

1) The Rothschild Family - London 2) The Rothschild Family - Berlin 3) The Lazard Brothers - Paris 4) Israel Seiff - Italy 5) Kuhn-Loeb Company - Germany 6) The Warburgs - Amsterdam 7) The Warburgs - Hamburg 8) Lehman Brothers - New York 9) Goldman & Sachs - New York 10) The Rockefeller Family - New York
Now I don't know about you, but something is terribly wrong with this situation. Namely, don't we live in AMERICA? If so, why are seven of the top ten stockholders located in FOREIGN countries? That's 70%! To further convey how screwed-up this system is, Jim Marrs provides the following data in his phenomenal book, "Rule By Secrecy.
" He says that the Federal Reserve Bank of New York, which undeniably controls the other eleven Federal Reserve branches, is essentially controlled by two financial institutions:
1) Chase-Manhattan (controlled by the Rockefellers) - 6,389,445 shares - 32.
3%
2) Citbank - 4,051,851 shares - 20.
5%
Thus, these two entities control nearly 53% of the New York Federal Reserve Bank. Doesn't that boggle your mind? Now, considering how many trillions of dollars are involved here, and how the bankers are WAY above our "selected" officials in Washington, D.C., do you think the above-listed banks and families have an inordinate amount of say-so in how our country is being run? The answer is blindingly apparent.

Where does the money come from?
We all know that the Federal Reserve CORPORATION prints money - then loans it, at interest, to our government. But wait until you see what a total scam this process is. But before we get to the meat of this issue, let's remember one thing about the very essence of banking - primarily that money should have some type of standard upon which its value is based. In the case of America, we operate on what is called a "gold standard" (i.e. our money is backed by gold).

So, with that in mind, let's look at how money is actually created, and at what cost. If the Federal Reserve wants to print 1,000 one-hundred ($100) bills, their total cost for ink, paper, plates, labor, etc. would be approximately $23.00 (according to Davvy Kidd in "Why A Bankrupt America"). Now, if you do the math, the total cost of 10,000 bills would be $230.00 ($.023 x 10,000). But, and here's the catch - 10,000 $100 bills equals $1,000,000! So, the Federal Reserve can "create" a million dollars, then LEND it to the U.S. Government (with interest) for a total cost of $230.
00! That's not a bad deal, huh!
The banking industry calls this process "seignorage." I call it outright THEFT. Why? Well, regardless of the immense profit margin ($1,000,000 for $230), plus the huge interest payments, our government then needs to STEAL the American people's money to payoff their debts via a Mob-like agency called the IRS. So the bankers steal from the government, then the government turns around and steals from the people. I'm no genius, but who do you think is getting screwed in this process? US - the people at the bottom rung of the ladder.

What's worse is that - now catch your breath - there's NO MORE gold left in Fort Knox! It's all gone. In other words, the GOLD STANDARD that our financial system was based upon is now an illusion. We can't convert our money into gold --- only other currency. The entire underlying basis for our money is now a lie - a sham. The Federal Reserve has become so arrogant that they've become a literal MONEY MAKING MACHINE, creating currency out of thin air! So that's where the Fed gets their money - they literally make it, then lend it to us so they can make even MORE money off of it.

Money As A Religion
The above-detailed process has become so ridiculous that William Grieder, former assistant managing editor of the Washington Post, wrote a book in 1987 entitled, "Secrets of the Temple: How the Federal Reserve Runs the Country" that details how the Controllers have conditioned us to accept this absurd situation.

To modern minds," he writes, "it seemed bizarre to think of the Federal Reserve as a religious institution. Yet the conspiracy theorists, in their own demented way, were on to something real and significant. The Fed did also function in the realm of religion. Its mysterious powers of money creation, inherited from priestly forebears, shielded a complex bundle of social and psychological meanings. With its own form of secret incantation, the Federal Reserve presided over awesome social ritual, transactions so powerful and frightening they seemed to lie beyond common understanding.
"
Mr. Grieder continues, "Above all, money was a function of faith. It required implicit and universal social consent that was indeed mysterious. To create money and use it, each one must believe, and everyone must believe. Only then did worthless pieces of paper take on value.
"
Do you get it? MONEY is an ILLUSION! Why? Because the gold standard upon which our money is supposed to be based has been eliminated. There's no more gold in Fort Knox. It's all GONE! Now, money really IS only paper!!! In the past, money was supposed to represent something of tangible value.
Now it's simply paper!
Taken one step further, many of us don't even use paper money any more! Why? Well, here's a scenario. Many places of employment directly deposit their employee's paychecks into the bank. Once the money is there, when bill time comes around, the person in question can write out a stack of checks to pay them. Plus, when they need gasoline they use a credit card; and groceries a debit card. If this person goes out for dinner on Friday night, they can charge the tab on their diner's card. But what about the tip? They simply scribble in the amount at the bottom of the check. So far, the person hasn't spent a single dollar bill. Plus, if you bring electronic banking into the picture, we've virtually eliminated the use for money.
And, God forbid, what happens when encoded microchips are implanted into the backs of our hand?
In essence, money has become nothing more than an illusion - an electronic figure or amount on a computer screen. That's it! As time goes on, we have an increasing tendency toward being sucked into this Wizard of Oz vortex of unreality. Think about it. Americans as a whole are carrying more personal debt than in any other time in history. Plus our government keeps going further and further into the hole, with no hope of ever crawling out. But we have less and less actual MONEY! We're being enslaved by the debt of electronic blips on a computer screen! And 70% of the banks that control this debt via the Federal Reserve exist in foreign countries! What in God's name is going on? As author William Bramley says, "The result of this whole system is MASSIVE debt at every level of society.
"
We're getting screwed in a sickening way, folks, and the people doing it are demented magician-priests that use the ILLUSION of money as their control device. And I hate to say it, but if we allow things to keep going as they are, the situation will only get worse. Our only hope ... ONLY HOPE ... is to immediately take drastic action and remedy this crime.

(to be continued)
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~we(me,kalindi,nimai and our unborn) need some help.
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Anonymous Coward
User ID: 540084
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11/01/2008 09:06 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
lol... i prefer credit over hard cash any day, so if you guys can't stand it so much, its time to pack up and move to somewhere else cause we real americans don't want you here anyways.
ThePatriotMind

User ID: 519678
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11/01/2008 09:11 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
EPIC FUCKING FAIL .... OP

but you think exactly what they want you to think as with most of the sheople ....

"The regional Federal Reserve banks are not government agencies. ...but are independent,
privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F. 2d 1239
9th Circuit 1982




The Rothschilds

"The few who understand the system, will either be so interested from it's profits or so dependant
on it's favors, that there will be no opposition from that class." -- Rothschild Brothers of London, 1863

"Give me control of a nation's money and I care not who makes it's laws" -- Mayer Amschel
Bauer Rothschild



-------------------------------------------------------------​-------------------

Senators & Congressmen

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States" -- Sen. Barry Goldwater (Rep. AR)

"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President
[Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst
legislative crime of the ages is perpetrated by this banking and currency bill." --
Charles A. Lindbergh, Sr. , 1913

"From now on, depressions will be scientifically created." -- Congressman Charles A.
Lindbergh Sr. , 1913

"The financial system has been turned over to the Federal Reserve Board. That Board asministers the finance system by authority of a purely profiteering group. The system is Private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money" -- Charles A. Lindbergh Sr., 1923

"The Federal Reserve bank buys government bonds without one penny..." -- Congressman
Wright Patman, Congressional Record, Sept 30, 1941

"We have, in this country, one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board. This evil institution has impoverished the people of the United States and has practically bankrupted our government. It has done this through the corrupt practices of the moneyed vultures who control it". -- Congressman Louis T. McFadden in 1932 (Rep. Pa)

"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen.
There is not a man within the sound of my voice who does not know that this nation is run by the
International bankers -- Congressman Louis T. McFadden (Rep. Pa)

"Some people think the Federal Reserve Banks are the United States government's institutions.
They are not government institutions. They are private credit monopolies which prey upon the people
of the United States for the benefit of themselves and their foreign swindlers" -- Congressional
Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and
Currency (12 years) June 10, 1932

"I have never seen more Senators express discontent with their jobs....I think the major cause is
that, deep down in our hearts, we have been accomplices in doing something terrible and
unforgiveable to our wonderful country. Deep down in our heart, we know that we have given our
children a legacy of bankruptcy. We have defrauded our country to get ourselves elected." -- John
Danforth (R-Mo)

"These 12 corporations together cover the whole country and monopolize and use for private
gain every dollar of the public currency..." -- Mr. Crozier of Cincinnati, before Senate Banking and
Currency Committee - 1913

"The [Federal Reserve Act] as it stands seems to me to open the way to a vast inflation of the
currency... I do not like to think that any law can be passed that will make it possible to submerge
the gold standard in a flood of irredeemable paper currency." -- Henry Cabot Lodge Sr., 1913



-------------------------------------------------------------​-------------------

From the Federal Reserves Own Admissions

"When you or I write a check there must be sufficient funds in out account to cover the check,
but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn.
When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal
Reserve Bank

"Neither paper currency nor deposits have value as commodities, intrinsically, a 'dollar' bill is just
a piece of paper. Deposits are merely book entries." -- Modern Money Mechanics Workbook,
Federal Reserve Bank of Chicago, 1975

"The Federal Reserve system pays the U.S. Treasury 020.60 per thousand notes --a little over
2 cents each-- without regard to the face value of the note. Federal Reserve Notes, incidently, are
the only type of currency now produced for circulation. They are printed exclusively by the
Treasury's Bureau of Engraving and Printing, and the $20.60 per thousand price reflects the Bureau's
full cost of production. Federal Reserve Notes are printed in 01, 02, 05, 10, 20, 50, and 100 dollar
denominations only; notes of 500, 1000, 5000, and 10,000 denominations were last printed in
1945." --Donald J. Winn, Assistant to the Board of Governors of the Federal Reserve system

"We are completely dependant on the commercial banks. Someone has to borrow every dollar
we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous;
if not, we starve. We are absolutely without a permanent money system.... It is the most important
subject intelligent persons can investigate and reflect upon. It is so important that our present
civilization may collapse unless it becomes widely understood and the defects remedied very soon."
--Robert H. Hamphill, Atlanta Federal Reserve Bank



-------------------------------------------------------------​-------------------

From General Law

"The entire taxing and monetary systems are hereby placed under the U.C.C. (Uniform
Commercial Code)" -- The Federal Tax Lien Act of 1966

"There is a distinction between a 'debt discharged' and a debt 'paid'. When discharged, the debt
still exists though divested of it's charter as a legal obligation during the operation of the discharge, something of the original vitality of the debt continues to exist, which may be transferred, even
though the transferee takes it subject to it's disability incident to the discharge." --Stanek vs. White,
172 Minn.390, 215 N.W. 784

"The Federal Reserve Banks are not federal instrumentalities..." -- Lewis vs. United States
9th Circuit 1992

"The regional Federal Reserve banks are not government agencies. ...but are independent,
privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F. 2d 1239
9th Circuit 1982


-------------------------------------------------------------​-------------------

Past Presidents, not including the Founding Fathers

"Whoever controls the volume of money in any country is absolute master of all industry and
commerce." -- James A. Garfield, President of the United States

"A great industrial nation is controlled by it's system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world--no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men." --President Woodrow Wilson



-------------------------------------------------------------​-------------------

Founding Father's Quotes on Banking (Maybe some repeats from "Founding Father's Quotes" / Information tends to converge)

Thomas Jefferson
"I believe that banking institutions are more dangerous to our liberties than standing armies.
Already they have raised up a monied aristocracy that has set the government at defiance. The
issuing power (of money) should be taken away from the banks and restored to the people to
whom it properly belongs."--Thomas Jefferson, U.S. President.

Andrew Jackson
"If Congress has the right [it doesn't] to issue paper money [currency], it was given to them to be
used by...[the government] and not to be delegated to individuals or corporations" -- President
Andrew Jackson, Vetoed Bank Bill of 1836

James Madison
"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it's issuance". -- James Madison


-------------------------------------------------------------​-------------------

Misc. Sources

"Banks lend by creating credit. They create the means of payment out of nothing" -- Ralph M.
Hawtrey, Secretary of the British Treasury

"To expose a 15 Trillion dollar rip-off of the American people by the stockholders of the 1000
largest corporations over the last 100 years will be a tall order of business." -- Buckminster Fuller

"Every Congressman, every Senator knows precisely what causes inflation...but can't, [won't]
support the drastic reforms to stop it [repeal of the Federal Reserve Act] because it could cost him
his job." -- Robert A. Heinlein, Expanded Universe

"It is well that the people of the nation do not understand our banking and monetary system, for
if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford

"[Every circulating FRN] represents a one dollar debt to the Federal Reserve system." -- Money
Facts, House Banking and Currency Committee

"...the increase in the assets of the Federal Reserve banks from 143 million dollars in 1913 to
45 billion dollars in 1949 went directly to the private stockholders of the [federal reserve] banks." --
Eustace Mullins

"As soon as Mr. Roosevelt took office, the Federal Reserve began to buy government securities
at the rate of ten million dollars a week for 10 weeks, and created one hundred million dollars in new
[checkbook] currency, which alleviated the critical famine of money and credit, and the factories
started hiring people again." -- Eustace Mullins

"Should government refrain from regulation (taxation), the worthlessness of the money becomes
apparent and the fraud can no longer be concealed." -- John Maynard Keynes, "Consequences of
Peace."

"Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create deposits".- SIR JOSIAH STAMP, (President of the Bank of England in the 1920's, the second richest man in Britain):

"The modern Banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banks can in fact inflate, mint and unmint the modern ledger-entry currency".- MAJOR L .L. B. ANGUS:


"While boasting of our noble deeds were careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery. - Horace Greeley

"People who will not turn a shovel full of dirt on the project (Muscle Shoals Dam) nor contribute a pound of material, will collect more money from the United States than will the People who supply all the material and do all the work. This is the terrible thing about interest ...But here is the point: If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way. It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the People. If the currency issued by the People were no good, then the bonds would be no good, either. It is a terrible situation when the Government, to insure the National Wealth, must go in debt and submit to ruinous interest charges at the hands of men who control the fictitious value of gold. Interest is the invention of Satan". - THOMAS A. EDISON


"By this means government may secretly and unobserved, confiscate the wealth of the people,
and not one man in a million will detect the theft."--John Maynard Keynes (the father of 'Keynesian Economics' which our nation now endures) in his book "THE ECONOMIC CONSEQUENCES
OF THE PEACE" (1920).

"Capital must protect itself in every way...Debts must be collected and loans and mortgages
foreclosed as soon as possible. When through a process of law the common people have lost their
homes, they will be more tractable and more easily governed by the strong arm of the law applied
by the central power of leading financiers. People without homes will not quarrel with their leaders.
This is well known among our principal men now engaged in forming an imperialism of capitalism to
govern the world. By dividing the people we can get them to expend their energies in fighting over
questions of no importance to us except as teachers of the common herd."--
Taken from the Civil Servants' Year Book, "The Organizer" January 1934.

"The Federal Reserve banks, while not part of the government,..." -- United States budget for

1991 and 1992 part 7, page 10

The Money Power! It is the greatest power on earth; and it is arrayed against Labour. No other power
that is or ever was can be named with it...it attacks us through the Press - a monster with a thousand
lying tongues, a beast surpassing in foulness any conceived by the mythology that invented dragons,
were wolves, harpies, ghouls and vampires. It thunders against us from innumerable platforms and ,Yes, so far as we are concerned, the headquarters of the Money Power is Britain. But the Money Power is not a British institution; it is cosmopolitan. It is of no nationality, but of all nationalities. It dominates the world. The Money Power has corrupted
the faculties of the human soul, and tampered with the sanity of the human intellect... Editorial from 1907 edition of The Brisbane Worker (Australia)


...I am convinced that the agreement [Bretton Woods] will enthrone a world dictatorship of private
finance more complete and terrible than and Hitlerite dream. It offers no solution of world problems, but quite blatantly sets up controls which will reduce the smaller nations to vassal states and make every government the mouthpiece and tool of International Finance. It will undermine and destroy the democratic institutions of this country - in fact as effectively as ever the Fascist forces could have done - pervert and paganise our Christian ideals; and will undoubtedly present a new menace, endangering world peace. World collaboration of private financial interests can only mean mass unemployment, slavery, misery, degradation and financial destruction. Therefore, as freedom loving Australians we should reject this infamous proposal. -- Labor Minister of Australia, Eddie Ward, during the inception of the World Bank and Bretton Woods, he gave this warning.
Fighting and triggering liberals and SJW's in the trenches of their safe spaces since 2014

Signed,

The Patriot Mind
Bush is a traitor
User ID: 510746
United States
11/01/2008 09:12 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
I thought it was printed on thin paper...
ThePatriotMind

User ID: 519678
United States
11/01/2008 09:17 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
I thought it was printed on thin paper...
 Quoting: Bush is a traitor 510746


oinly 3% of money is even on paper coins anymore

97% doesnt even exist except as 1's and 0's in computers
Fighting and triggering liberals and SJW's in the trenches of their safe spaces since 2014

Signed,

The Patriot Mind
ThePatriotMind

User ID: 519678
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11/01/2008 09:22 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Every dollar printed is backed by collateral- that collateral being a US treasury bond which is sold off by the federal reserve to a buyer like your grandma, China, a pension fund, etc

 Quoting: Ben Bernanke 413045


lets see what Thomas Edison said :


"People who will not turn a shovel full of dirt on the project (Muscle Shoals Dam) nor contribute a pound of material, will collect more money from the United States than will the People who supply all the material and do all the work. This is the terrible thing about interest ...But here is the point: If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way. It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the People. If the currency issued by the People were no good, then the bonds would be no good, either. It is a terrible situation when the Government, to insure the National Wealth, must go in debt and submit to ruinous interest charges at the hands of men who control the fictitious value of gold. Interest is the invention of Satan". - THOMAS A. EDISON
Fighting and triggering liberals and SJW's in the trenches of their safe spaces since 2014

Signed,

The Patriot Mind
Anonymous Coward
User ID: 559
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11/01/2008 09:24 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
the huge debt cannot be repaid ever. taxes go towards interest.
deficit rages and stays on the books.
blackcat66
User ID: 348276
United States
11/01/2008 09:30 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Hey Ben, why don't you tell the good folk that the "money" is actually backed by the bond on THEIR BIRTH CERTIFICATE; that you're using THEIR CURRENT AND FUTURE LABOUR AS COLLATERAL.

Yes, people: YOU ARE THEIR COLLATERAL. So not only are YOU paying for THEIR mistakes with your tax money (and ALL of that cash is going to pay off the interest to the Federal Reserve -- a PRIVATE CORPORATION), YOU are the ONLY card they have.

Are YOU going to continue to let that happen???
 Quoting: Anonymous Coward 496050


And the bailout is a perfect example of this fact.
Alladin

User ID: 536973
Malaysia
11/01/2008 09:49 AM
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Re: The Federal Reserve DOES NOT create money out of thin air.
UrbanDigs
User ID: 729091
United States
07/18/2009 09:41 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
The Fed Does Not Print Money? Umm, wrong. If you are talking about paper money, sure, the US beu

When people refer to the fed as printing money, they are talking about quantitative easing policy in which they are buying assets from primary dealers and money center banks that have accounts with the NY Fed's open market operations. In this QE policy, the nuclear arsenal of stimulus and creation of money that was non existent before, the fed buys treasuries, agency debt, agency MBS, whatever from the primary dealer with a mouseclick that credits the sellers account with reserves (MONEY) that was not there before. The fed did not sell any asset to raise this money, nor did they borrow it somehow. The fed simply mouseclicked an amount and the credit appeared in the sellers excess reserves.

Hence, printing out of think air. But if you dont believe me, just go visit the NY Fed website where they blatantly telly you how they are financing these asset purchases and whether they are reserve neutral:

[link to www.newyorkfed.org]

"Are these operations reserve neutral?]

No, these operations are financed through the creation of additional bank reserves."

Right there, "creation of additional bank reserves", as in, created out of nothing to finance their purchases.
Anonymous Coward
User ID: 721883
United States
07/18/2009 09:42 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Yeah, usually the Mint prints it on paper.
Anonymous Coward
User ID: 728202
United States
07/18/2009 09:42 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Two words: Fractional Reserves.
 Quoting: Anonymous Coward 490531


Yup...
Anonymous Coward
User ID: 679397
United States
07/18/2009 09:57 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Every dollar ---is printed.,


Then a treasury bond is sold.



Can I ask anyone a question??

Who is going to buy a trillion dollars in bonds?

 Quoting: Kanigo2


The Fed has offshore acounts to pick up any slack. I guess it doesn't matter who buys it as long as it is bought.
EJ25LVR
User ID: 514219
United States
07/18/2009 10:00 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
federal reserve = Corporation
Anonymous Coward
User ID: 571235
United States
07/18/2009 10:01 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Actually only a small amount of the total $'s are printed (physical currency).

~96% of it is e-money on a computer NOT printed.
Anonymous Coward
User ID: 727432
United States
07/18/2009 10:17 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
the huge debt cannot be repaid ever. taxes go towards interest.
deficit rages and stays on the books.
 Quoting: Anonymous Coward 559


Just like a credit card!
Anonymous Coward
User ID: 727432
United States
07/18/2009 10:20 PM
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Re: The Federal Reserve DOES NOT create money out of thin air.
Yeah, usually the Mint prints it on paper.
 Quoting: Anonymous Coward 721883



Ok so they create it out of thin paper.





GLP