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Old 03-20-2018, 07:54 PM
 
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The creation or printing of money (aka seigniorage). The true power are those that control the flow of money, the creation of debt, and access to liquidity.
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Old 03-21-2018, 08:50 AM
 
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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?
No. The money belongs to the central bank (Federal Reserve or another central bank), not to the individual people that operate the printing machines. The machines are also owned by the institution.

Quote:
Originally Posted by yologuy01 View Post
. 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
If you print too much money, all that happens is that you get a lot of inflation. You will not be able to buy the whole world because if you have too much inflation, no one is going to want anything to do with your currency. In other words, you can't buy the whole world because few will want to sell their parts to you. The big and rich are not so gullible.

Also, currency destabilization can also lead to a civil uprising against the government in question, since people place a lot of value on their livelihood. No one wants to toil for a full work week and then find that their earnings can't even buy groceries by the time the weekend comes around! Completely unrestrained money printing results in hyperinflation (extreme inflation), forcing people to spend their money immediately. This does not result in stable living or economy.
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Old 04-02-2018, 05:28 PM
 
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Originally Posted by jetgraphics View Post
NO.

But no one can legally question the validity of the public debt, pursuant to the 14th amendment, clause 4.

D'OH.
Do you know the historical background of this amendment? It looks so strange...
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Old 04-07-2018, 01:48 PM
 
9,082 posts, read 9,238,531 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
Bank money, or broad money is the money created by private banks through the recording of loans as deposits of borrowing clients. In most countries, the majority of money is mostly created by commercial banks making loans.

Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money to create new loans and deposits.

So money in the modern sense is based on loans from commercial banks. Central bank money is primarily banknotes and coins which allow transactions without interacting with commercial banks. In Sweden, the use of banknotes and coins is diminishing at the highest rate in the world (from 2007-2016 half the cash is gone from circulation). The Central Bank in Sweden is proposing that they issue electronic cash, independent of the electronic transactions done through commercial banks, and would prevent virtually all the money in the country from becoming commercial bank money.

But in either case money is a loan, and is recorded as a "liability" on a ledger sheet. Even banknotes and coins are considered a liability to the central bank. You cannot create unlimited 'liabilities" and buy the whole world.

Even something as simple as the US $100 banknote The circulation level has increased by roughly 4X since the big headed Benjamin Franklin notes were first printed in 1996. Some people think of this increase as a scam since most are circulating overseas.
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Old 04-07-2018, 03:04 PM
 
8,297 posts, read 3,461,858 times
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Originally Posted by PacoMartin View Post
Bank money, or broad money is the money created by private banks through the recording of loans as deposits of borrowing clients. In most countries, the majority of money is mostly created by commercial banks making loans.

Contrary to some popular misconceptions, banks do not act simply as intermediaries, lending out deposits that savers place with them, and do not depend on central bank money to create new loans and deposits.

So money in the modern sense is based on loans from commercial banks. Central bank money is primarily banknotes and coins which allow transactions without interacting with commercial banks. In Sweden, the use of banknotes and coins is diminishing at the highest rate in the world (from 2007-2016 half the cash is gone from circulation). The Central Bank in Sweden is proposing that they issue electronic cash, independent of the electronic transactions done through commercial banks, and would prevent virtually all the money in the country from becoming commercial bank money.

But in either case money is a loan, and is recorded as a "liability" on a ledger sheet. Even banknotes and coins are considered a liability to the central bank. You cannot create unlimited 'liabilities" and buy the whole world.

Even something as simple as the US $100 banknote The circulation level has increased by roughly 4X since the big headed Benjamin Franklin notes were first printed in 1996. Some people think of this increase as a scam since most are circulating overseas.
Another way to say it, is that loans create deposits, not the conventional opposite:

http://www.theguardian.com/commentis...land-austerity
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Old 04-07-2018, 03:14 PM
 
16,512 posts, read 17,561,528 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
The rich are the ones who are able to hold on or make more money with money they have. Money was created simply because we couldn’t stay on the barter system and still go forward.
Money (in the beginning) was anything people found to be rare therefore valuable. That’s why Roman soldiers were paid in salt and gold. At some point in our history as humans rare shells were a form of money.
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