Money Creation and Central Banking

[Read_Lives_of_Saints]

It does not require much research in order to have an understanding of the monetary system, and while economic theory can become advanced when applied to complex and esoteric Wall Street investment instruments that caused the 2008 Financial Crisis, a clear grasp of the main ideas of filthy lucre reveals how manipulation of the rules from the top is much more meaningful than the daily ebb and flow at the bottom.

Money As Debt, 47 minute watch
This simple infotoon explains the history of money creation and how the Federal Reserve works with fractional reserve banking. The influx of gold from the New World created an excess of wealth that helped to establish a banking system that was readily corruptible.
Money as Debt I - Revised Edition (2009)


The Shadow Money System That Rules The World, 20 minute listen or read
And why the dollar isn't going away
by Keith Woods, July 2024
This article explains how banks in Europe outside of the Federal Reserve created a system of issuance based on US dollars, the implications of which reinforce what was explained in Money As Debt.

Ben Bernanke's Greatest Challenge, 26 minutes watch with the most important part only 3 minutes long, marked below.
60 Minutes interview with Chairman of the Federal Reserve, Ben Bernanke, asking him about the 2008 Financial Crisis, where he reveals that the Fed can, on their own authority, and without any permission from anyone, decrease interest rates and give trillions of $$ to banks by simply adding more zeros on their balance sheets in the computers, and it has nothing to do with tax revenues. Transcript.
March 12, 2009
At 8.00 minute mark Pelley asks, "Is that tax money?"


Monopoly Men from The Lost Archives Series from 1998
This 45 minute episode is a bit dramatic and spooky, but covers the origins of the conspiratorially founded Federal Reserve Bank that was created by Congress as a private institution in 1913.

During the Wilson presidency, the U.S. government sanctioned the creation of the Federal Reserve. Thought by many to be a government organization maintained to provide financial accountability in the event of a domestic depression, the actual business of the FED is shrouded in secrecy. "Unknown Encounter" - This program chronicles the six-year haunting of a California woman and the researchers committed to finding out the truth about her unwelcome visitor. Hosted by Dean Stockwell.

Jewish Banking Dynasties Founded the Fed
Karl Haemers • August 5, 2023
Good article about the history of central banking since the 20th century.

 

[Read_Lives_of_Saints]

When you go to the bank for a car or other loan and get $50K or whatever, where do you think that money came from? Most people think it came from the bank's deposits, but if it is a member of the Federal Reserve bank system, that's not where the money issued for the loan originated.

The Federal Reserve and its member banks create money from nothing, literally out of thin air, based on a promise to repay that money with interest from the debtor. Member banks are allowed to create this new money from nothing at a ratio of 9:1 of their deposits, however their deposits can be accounted as part of the conglomerate of other member banks, so there's a lot of floating available.

Money As Debt questions why should our money be created by a non-governmental institution and loaned back, either to private debtors or to the government, with interest, instead of the government just creating the money directly?

 

[Read_Lives_of_Saints]

As explained in the above interview with Federal Reserve Chairman, Ben Bernanke, the Fed created trillions of dollars in money from nothing, under its own authority, merely by adding zero's to the end of the existing amounts of large banks through a few keystrokes on the computer. The money is loaned at interest rates as low as 0.5%, which has two secondary effects:

(1) Rapidly increasing the money supply without an equivalent increase in the value of goods and services in the economy creates inflation. The initial recipients, the too big to fail banks that caused the crisis, use the new money with the pre-inflationary purchasing power, while by the time the Bernanke bucks filter down to the smaller creditors like you and me, the money is worth less.

(2) Loans of this size at near 0% interest give tremendous power to the "debtor" or recipient because that much money can be used to influence or control almost any market or policy making body in the country.

After the 2008 Financial Crisis, the Federal Reserve loaned many trillions of $$ to the too big to fail banks. One article from 2010 shows $9 TRILLION USD at 0.5-3.5% interest.

An older article from just Nov. 2008 put the overnight loans (repaid the next day) at only $10 billion, but the total at $8.5 TRILLION.

Government bailout hits $8.5 trillion
By Kathleen Pender,
Nov 26, 2008

Government bailout hits $8.5 trillion

The federal government committed an additional $800 billion to two new loan programs on...

www.sfgate.com

Fed made $9 trillion in emergency overnight loans
By Chris Isidore, senior writer
December 1, 2010: 6:05 PM ET

https://web.archive.org/web/20110223172803/https://money.cnn.com/2010/12/01/news/economy/fed_reserve_data_release/index.htm

 

[GoodShepherd]

This is why Bitcoin is such a game changer in the money world, what do you think about that?

 

[tikkasakko]

This is why Bitcoin is such a game changer in the money world, what do you think about that?

I'm basically retarded when it comes to bitcoin. What gives it value? When it was invented, what gave it value initially. I always thought that for any type of currency to have value, goods or services must be exchanged. Help me understand.

 

[Australia Sucks]

When you go to the bank for a car or other loan and get $50K or whatever, where do you think that money came from? Most people think it came from the bank's deposits, but if it is a member of the Federal Reserve bank system, that's not where the money issued for the loan originated.

The Federal Reserve and its member banks create money from nothing, literally out of thin air, based on a promise to repay that money with interest from the debtor. Member banks are allowed to create this new money from nothing at a ratio of 9:1 of their deposits, however their deposits can be accounted as part of the conglomerate of other member banks, so there's a lot of floating available.

Money As Debt questions why should our money be created by a non-governmental institution and loaned back, either to private debtors or to the government, with interest, instead of the government just creating the money directly?

Indeed there are official public papers written by the back of England that admit that loans create deposits and commercial banks loan money into existence which then later become deposits in somebody else’s bank account(s).

 

[GoodShepherd]

I'm basically retarded when it comes to bitcoin. What gives it value? When it was invented, what gave it value initially. I always thought that for any type of currency to have value, goods or services must be exchanged. Help me understand.

So not to side track to much from the thread @Read_Lives_of_Saints just posted, you should start following the bitcoin and crypto thread. I was also retarded on bitcoin you are in good company, Im also broke at the moment so I dont have either (this is just temporary situation). Bitcoin is basically the digital version of gold, gold cant be created out of thin air and its quite a rare metal and requires lots of time and energy to mine and its international, its what fiat money used to be backed by, bitcoin is created by energy too (electricity) and there is only a very limited amount of bitcoin that can ever be mined, then its done, this scarcity gives it value, just like gold it can be faked or created out of thin air at will. As read the lives of the saints explained fiat money can be manipulated and created out of thin air, just digits on a screen or printing machines can just print as much of it as they want.

This cant be done with bitcoin so its a very big game changer in the world of money right now and in my opinion its actually better than gold as its more liquid and can be moved internationally easier, I would rather accept bitcoin at this stage than physical gold as payment as its far more practical.

If you would like to understand the concept listen to the robert breedlove and michael saylor podcast called what is money, its a 8-9 part series and read the book the bitcoin standard its really worth it.

 

[Read_Lives_of_Saints]

This is why Bitcoin is such a game changer in the money world, what do you think about that?

I am 99% ignorant on bitcoin, but of course I have seen that is is a new and important type of money.

I generally think its existence is allowed in order to smooth the way to fully digital currency, but that does not diminish bitcoin's current relevance.

 

[GoodShepherd]

I am 99% ignorant on bitcoin, but of course I have seen that is is a new and important type of money.

I generally think its existence is allowed in order to smooth the way to fully digital currency, but that does not diminish bitcoin's current relevance.

We are already living in a digital currency world in my opinion, bitcoin is possibly just a backdoor way for us inside this digital currency world thats outside the control of the world governments, its the "cash" of the digital currencies.

 

[Read_Lives_of_Saints]

So not to side track to much from the thread @Read_Lives_of_Saints just posted, you should start following the bitcoin and crypto thread.

To the contrary, I appreciate your input here.

My thesis in this thread is twofold:

(1) Money is not well understood by most people and it's good to learn the basics, so I'm all for educational input in this thread on the topic of money creation and central banking, which definitely includes bitcoin.

(2) Money today is completely abstract, even when it exists as physical currency, notes & coins.

It is important to know that because money has become 100% abstract, it is also 100% possible to fake it, like an AI video of Joe Biden being cogent, lol.

The ultimate redpill on money is that we are in a system, or digital matrix if you will, where the value of our lives, our labor, our time, and our blood, sweat & tears, has been translated into something that is detached from normal reality and into a plane of existence where it can be manipulated by you know who.

 

[GoodShepherd]

To the contrary, I appreciate your input here.

My thesis in this thread is twofold:

(1) Money is not well understood by most people and it's good to learn the basics, so I'm all for educational input in this thread on the topic of money creation and central banking, which definitely includes bitcoin.

(2) Money today is completely abstract, even when it exists as physical currency, notes & coins.

It is important to know that because money has become 100% abstract, it is also 100% possible to fake it, like an AI video of Joe Biden being cogent, lol.

The ultimate redpill on money is that we are in a system, or digital matrix if you will, where the value of our lives, our labor, our time, and our blood, sweat & tears, has been translated into something that is detached from normal reality and into a plane of existence where it can be manipulated by you know who.

Thats what I like about bitcoin, its a more sound moral money that free from government and outside manipulation, the individual has more control and freedom with their bitcoin, compared to a bank where you basically have to be asked for permision to use your own money, its insulting, remember what banks and government did during the lockdowns in certain countries, like in Canada with the truckers, the froze their bank accounts, thats terrible, I remember Nick Fuentes once mentioned that the FBI confiscated hundreds of thousands of dollars from his bank account, that kind of stuff hasnt happened with bitcoin since the state has no access to your private bitcoin funds and its can also be used internationally.

Fiat money is just going one way

 

[Read_Lives_of_Saints]

For your amusement, education, and edification, the banking system as explained by The Three Stooges:

Where is the lie?

 

[Judoka]

I'm basically retarded when it comes to bitcoin. What gives it value? When it was invented, what gave it value initially.

There is a large gentleman's agreement where Bitcoiners pretend that a worthless digital token has actual value. It's amazing that the price is over 100k but here we are. It's similar to the Dutch tulip bubble of the 17th century.

 

[Australia Sucks]

There is a large gentleman's agreement where Bitcoiners pretend that a worthless digital token has actual value. It's amazing that the price is over 100k but here we are. It's similar to the Dutch tulip bubble of the 17th century.

Just like there is a gentleman’s agreement where fiat shitcoiners all pretend worthless US dollars and other fiat currencies have actual value. This has gone on for over a hundred years but here we are.

 

[Judoka]

Just like there is a gentleman’s agreement where fiat shitcoiners all pretend worthless US dollars and other fiat currencies have actual value. This has gone on for over a hundred years but here we are.

It's not the same. Nobody is forcing anyone to use Bitcoin.

Off-topic but why don't you change your username?. It seems pretty negative and not everyone here is going to take you seriously.

 

[Based_Christian_Dude]

It does not require much research in order to have an understanding of the monetary system, and while economic theory can become advanced when applied to complex and esoteric Wall Street investment instruments that caused the 2008 Financial Crisis, a clear grasp of the main ideas of filthy lucre reveals how manipulation of the rules from the top is much more meaningful than the daily ebb and flow at the bottom.

Money As Debt, 47 minute watch
This simple infotoon explains the history of money creation and how the Federal Reserve works with fractional reserve banking. The influx of gold from the New World created an excess of wealth that helped to establish a banking system that was readily corruptible.
Money as Debt I - Revised Edition (2009)


The Shadow Money System That Rules The World, 20 minute listen or read
And why the dollar isn't going away
by Keith Woods, July 2024
This article explains how banks in Europe outside of the Federal Reserve created a system of issuance based on US dollars, the implications of which reinforce what was explained in Money As Debt.

Ben Bernanke's Greatest Challenge, 26 minutes watch with the most important part only 3 minutes long, marked below.
60 Minutes interview with Chairman of the Federal Reserve, Ben Bernanke, asking him about the 2008 Financial Crisis, where he reveals that the Fed can, on their own authority, and without any permission from anyone, decrease interest rates and give trillions of $$ to banks by simply adding more zeros on their balance sheets in the computers, and it has nothing to do with tax revenues. Transcript.
March 12, 2009
At 8.00 minute mark Pelley asks, "Is that tax money?"


Monopoly Men from The Lost Archives Series from 1998
This 45 minute episode is a bit dramatic and spooky, but covers the origins of the conspiratorially founded Federal Reserve Bank that was created by Congress as a private institution in 1913.



Jewish Banking Dynasties Founded the Fed
Karl Haemers • August 5, 2023
Good article about the history of central banking since the 20th century.

View attachment 21446

When you go to the bank for a car or other loan and get $50K or whatever, where do you think that money came from? Most people think it came from the bank's deposits, but if it is a member of the Federal Reserve bank system, that's not where the money issued for the loan originated.

The Federal Reserve and its member banks create money from nothing, literally out of thin air, based on a promise to repay that money with interest from the debtor. Member banks are allowed to create this new money from nothing at a ratio of 9:1 of their deposits, however their deposits can be accounted as part of the conglomerate of other member banks, so there's a lot of floating available.

Money As Debt questions why should our money be created by a non-governmental institution and loaned back, either to private debtors or to the government, with interest, instead of the government just creating the money directly?

As explained in the above interview with Federal Reserve Chairman, Ben Bernanke, the Fed created trillions of dollars in money from nothing, under its own authority, merely by adding zero's to the end of the existing amounts of large banks through a few keystrokes on the computer. The money is loaned at interest rates as low as 0.5%, which has two secondary effects:

(1) Rapidly increasing the money supply without an equivalent increase in the value of goods and services in the economy creates inflation. The initial recipients, the too big to fail banks that caused the crisis, use the new money with the pre-inflationary purchasing power, while by the time the Bernanke bucks filter down to the smaller creditors like you and me, the money is worth less.

(2) Loans of this size at near 0% interest give tremendous power to the "debtor" or recipient because that much money can be used to influence or control almost any market or policy making body in the country.

After the 2008 Financial Crisis, the Federal Reserve loaned many trillions of $$ to the too big to fail banks. One article from 2010 shows $9 TRILLION USD at 0.5-3.5% interest.

An older article from just Nov. 2008 put the overnight loans (repaid the next day) at only $10 billion, but the total at $8.5 TRILLION.

Government bailout hits $8.5 trillion
By Kathleen Pender,
Nov 26, 2008

Government bailout hits $8.5 trillion

The federal government committed an additional $800 billion to two new loan programs on...

www.sfgate.com

Fed made $9 trillion in emergency overnight loans
By Chris Isidore, senior writer
December 1, 2010: 6:05 PM ET

https://web.archive.org/web/20110223172803/https://money.cnn.com/2010/12/01/news/economy/fed_reserve_data_release/index.htm

Don't forget that Federal Income Taxes (and other Federal revenue) goes to paying interest to the Federal Reserve's super-secret shareholders

See my post here: https://christisking.cc/threads/the...r-economies-outside-the-system.854/post-54289

 

[Read_Lives_of_Saints]

Don't forget that Federal Income Taxes (and other Federal revenue) goes to paying interest to the Federal Reserve's super-secret shareholders

See my post here: https://christisking.cc/threads/the...r-economies-outside-the-system.854/post-54289

Truly a based take

 

[Blade Runner]

It's similar to the Dutch tulip bubble of the 17th century.

No it isn't.

One thing about "bubbles" is that they presage the future. As Mr. Frisby pointed out, the tulip bubble (only lasted 2-3 years) set up Holland as the flower capital of the world. The dot com bubble set up the internet to be the huge network we all know now, the vast expansion of one of the few actual inventions of the modern world that changed it. BTC is already maturing and replacing many assets, and nation states are already bending the knee. Using this logic, one might predict that AI will burst with this initial marketing plan and crazy funding, but it will come roaring back and be very real in the next 20 years.

When you see things, you can't un-see them. Not many do, which is the point.

 

[Australia Sucks]

Using this logic, one might predict that AI will burst with this initial marketing plan and crazy funding,

Markets have not yet reached the speculative blow off top speculative mania phase yet for this cycle. You see in the stockmarket small caps are fairly subdued on a longer term chart and in crypto there hasn't been the huge altcoin bubble. Even in real estate we haven't the mass speculation yet.

 

[GoodShepherd]

There is a large gentleman's agreement where Bitcoiners pretend that a worthless digital token has actual value. It's amazing that the price is over 100k but here we are. It's similar to the Dutch tulip bubble of the 17th century.

To avoid people carrying large amounts of gold and silver people came up with paper fiat money that was backed by either gold or silver, for conveniance sake, obviously thats not how our money works anymore its literally just a piece of paper that banks and government print out of thin air and manipulate since it was taken off the gold standard by Richard Nixon if Im not mistaken.

Bitcoin might be invisible and digital but its a very complex system, its based on a mathematical code, a formula and its value goes up or down based on the amount of users and transactions, its the reason why its worth so much now, its an organic growth, there is also a limit of how much bitcoin can exist its not infinate and we can all see who owns what bitcoin its on a public ledger so theres transparency, at this point in our history right now I would prefer a bitcoin payment over physical gold.

When I arrived in America the other day I cashed out some bitcoin in seconds and I bought a pizza for $24 for my family and it was delivered to my door.