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Old 03-09-2018, 05:37 PM
 
Location: Kansas City, MISSOURI
5,476 posts, read 1,651,715 times
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Quote:
Originally Posted by yologuy01 View Post
I don't know how this all works so was wondering. Are the people that own the machine or thing that creates American money among the richest people on earth?. Are they also by definition very powerful.If you can create unlimited money can you "buy" the whole world so to speak. Does every country create their own money, can every country can create unlimited money. How does it all work
You know who creates money? YOU do!

That's right. Most money is created by banks, via loans. That is, when you use your credit card, or take out a car loan, student loan, or mortgage, YOU are demanding that your bank create new money. Your bank is only required to actually have 10% of the money you requested. The other 90% is created "out of thin air." So when YOU take out a loan of any kind, YOU are demanding to your bank that it create new money.
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Old 03-09-2018, 06:12 PM
 
8,277 posts, read 3,452,461 times
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Quote:
Originally Posted by yologuy01 View Post
I don't know how this all works so was wondering. Are the people that own the machine or thing that creates American money among the richest people on earth?. Are they also by definition very powerful.If you can create unlimited money can you "buy" the whole world so to speak. Does every country create their own money, can every country can create unlimited money. How does it all work
Monetary sovereignty means the ability for a nation to create its own money. Based on laws, limited or unlimited.

In the US most money is create by bank loans.

Some money is created through Congress and Federal deficit spending.

The Fed can create money out of thin air as it did with QE.

The Executive can create money by stamping coins.

Trillion dollar platinum proof coins if Trump desires.

I'd guess that most involved in the above are not poor. But most not the elite by any means.
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Old 03-10-2018, 08:02 AM
 
10,608 posts, read 13,373,641 times
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Quote:
Originally Posted by yologuy01 View Post
I don't know how this all works so was wondering. Are the people that own the machine or thing that creates American money among the richest people on earth?. Are they also by definition very powerful.If you can create unlimited money can you "buy" the whole world so to speak. Does every country create their own money, can every country can create unlimited money. How does it all work
NO, not really.

The people who create wealth for everyone are the people who create products and services other people want, need or desire. Entrepreneurs.

80% of American business is small business.

They may or may not be exactly the wealthiest at any given time.

I have a dog walking micro-business, I COULD potentially hire a bunch of people but chose not to.

Thomas Edison failed MANY times before he had a winning idea.
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Old 03-10-2018, 08:10 AM
 
Location: Saint John, IN
10,638 posts, read 3,311,331 times
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Is the OP serious??
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Old 03-10-2018, 08:31 AM
 
8,277 posts, read 3,452,461 times
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Quote:
Originally Posted by runswithscissors View Post
NO, not really.

The people who create wealth for everyone are the people who create products and services other people want, need or desire. Entrepreneurs.

80% of American business is small business.

They may or may not be exactly the wealthiest at any given time.

I have a dog walking micro-business, I COULD potentially hire a bunch of people but chose not to.

Thomas Edison failed MANY times before he had a winning idea.
The OP asks about money creation, not wealth.
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Old 03-10-2018, 08:53 AM
 
Location: midvalley Oregon and Eastside seattle area
2,900 posts, read 1,344,207 times
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Quote:
Originally Posted by yologuy01 View Post
I don't know how this all works so was wondering. Are the people that own the machine or thing that creates American money among the richest people on earth?. Are they also by definition very powerful.If you can create unlimited money can you "buy" the whole world so to speak. Does every country create their own money, can every country can create unlimited money. How does it all work
JMO, Lots of gray area when you talk about "wealth", "rich", "money". They are not the same but commonly thought of being the same.
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Old 03-10-2018, 10:22 AM
 
10,608 posts, read 13,373,641 times
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Quote:
Originally Posted by Hoonose View Post
The OP asks about money creation, not wealth.
The OP asks about creating money.

Which isn't even a thing.

Or maybe you thought he was asking about how the Treasury operates?
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Old 03-10-2018, 10:25 AM
 
8,277 posts, read 3,452,461 times
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Quote:
Originally Posted by runswithscissors View Post
The OP asks about creating money.

Which isn't even a thing.
Sure it's a thing. It can be physical paper, coin or gold, or electronic USD or other sovereign currency.
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Old 03-10-2018, 10:49 AM
 
Location: Aurora Denveralis
2,977 posts, read 1,012,279 times
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Quote:
Originally Posted by runswithscissors View Post
The OP asks about creating money.

Which isn't even a thing.?
Quote:
Originally Posted by Hoonose View Post
Sure it's a thing. It can be physical paper, coin or gold, or electronic USD or other sovereign currency.
Getting a bit econ-semantical here. I think technically, wealth is created, which can be represented by money. But the difference when it's government action or banking expansion is hairsplitting.

I suppose when Picasso scribbled on a bar napkin, he created non-monetary wealth. But all of the above discussion is about the financial system, which pretty much 100% runs on "money." "Say, buddy, can you break a Lichtenstein for me?"
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Old 03-10-2018, 11:15 AM
 
820 posts, read 274,876 times
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Money is one of the more difficult abstractions to comprehend, because people think it's simply 'cash in hand'.

You need a basic course in economics, and learning the mathematics of finance won't hurt either.

Now, giddyapp!
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