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.....but that doesn't mean that the Federal Reserve is the only entity that can create dollars under our monetary system.
Who else does it?
It's the Federal Reserve that has the job to control money supply. They have had this role since the early 1900s. The Treasury does print dollars but that is at the behest of the Federal Reserve who pays them for the production costs. Go pull some cash out of your pocket. If you notice at the top you are actually holding a "Federal Reserve Note".
"United States Note" the dollar that everyone thinks they have, disappeared in 1971 and are no longer issued. So the dollar you have now is a note from the Federal Reserve. It is virtual money and only represents a debt to someone else. United States Notes were redeemable into something of tangible value, i.e. gold.
So after the collapse, let's make sure we go back to this gold standard. Look at what ourdollar would have done if it were still based on that when gold skyrocketed!
I hate to play deeper into this nut job of a thread...but to address bugguy's question...
In an apocalypse scenario such as we're discussing, I'd opt for not being the general "store" where people think they can go to for things they need. It would make you a target eventually and just flat out complicate your life during a very complicated time. My effort would be on making sure I always have an advantage over those around me (if I'm concerned with my survival). To be specific, I'd rather have ammo that I could use to get what I need than try to have ammo (or other things) that I *might* be able to trade for those things! Not saying I'd be the Jesse James outlaw of the town, but then again, we're talking about an apocalypse here!
Private banks drive the money creation process, and the fed just comes along later and decides to print money so the banks will have reserves.
You're saying that banks sit around waiting on deposits, and then lend once they have those deposits.
In reality, (so I'm told, I'm not a banker..), banks lend first, creating money, and then find reserves later. So credit is created first and then after that, base money changes. Debt exceeds the money supply, not the other way around.
Quote:
It's the Federal Reserve that has the job to control money supply. They have had this role since the early 1900s. The Treasury does print dollars but that is at the behest of the Federal Reserve who pays them for the production costs.
Go pull some cash out of your pocket. If you notice at the top you are actually holding a "Federal Reserve Note".
"United States Note" the dollar that everyone thinks they have, disappeared in 1971 and are no longer issued. So the dollar you have now is a note from the Federal Reserve. It is virtual money and only represents a debt to someone else. United States Notes were redeemable into something of tangible value, i.e. gold.
I thought boot legging might be the way to go. So I am stocking up on sugar.
Kudzu Flower Wine
4 quarts well water
6 quarts fresh kudzu blossoms
4 cups sugar
1 gallon jug
1 balloon
Yeast
Pick kudzu blossoms when they are dry (mid-day). Rinse in running water to remove any foreign particles, dirt, or dust. Pour three quarts of boiling water over the blossoms and stir. Put a lid on the container and stir twice a day for four days.
Strain the liquid through a clean cloth. Press the blossoms to get all the liquid from them. Add four cups sugar. Dissolve yeast in lukewarm water. Pour the dissolved yeast into the liquid. Stir well. Cover and let it stand for five days. Then transfer to a one-gallon jug. Add enough well water to bring the liquid within two inches below the neck of the jug. Attach the balloon to the top of the jug. Place jug in a cool dark place that is between 65° F to 75° F.
Periodically gently loosen the balloon and allow the gas to escape and then replace the balloon firmly on the neck of the jug. In approximately six weeks the balloon will stop expanding and the wine is done. Strain the wine through a clean cloth and transfer it to airtight bottles. (Optional: Drop five raisins into each one-gallon bottle.) Cork each bottle tightly. Allow it to sit for an additional six to twelve months before drinking.
It's the Federal Reserve that has the job to control money supply. They have had this role since the early 1900s. The Treasury does print dollars but that is at the behest of the Federal Reserve who pays them for the production costs. Go pull some cash out of your pocket. If you notice at the top you are actually holding a "Federal Reserve Note".
"United States Note" the dollar that everyone thinks they have, disappeared in 1971 and are no longer issued. So the dollar you have now is a note from the Federal Reserve. It is virtual money and only represents a debt to someone else. United States Notes were redeemable into something of tangible value, i.e. gold.
rubber_factory is correct. Private banks do have the ability to create money. It's through the fractional reserve system. If the banks have a reserve of say $10, they can create $90 from it in addition to it and loan that out. That additional $90 was created through a loan by a bank. That loan can be for example your mortgage or my car payment.
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