Seeking Help on How Money is Brought into Existance

Important background on why I'm seeking help.

Henry Ford once said “it’s just as well that the ordinary man and woman does not understand how money works for if they did there would be a riot before morning”, or words to that effect.

Chris Field wrote a nice little 50 page free EBook called Banks Lie, that explains why Henry Ford said what he said and all the lies and deceit the banks enage in.

In the book he quoted a Royal Commission (high level government enquiry) into finance and banking in Australia held in the 1930’s that found “there is nothing that prevents the Australian Government own bank, The Commonwealth Bank at the time, from lending money to the government on such faverouable terms as the bank deems fit. This includes the non repayment of interest and the non repayment of principle.

We all know that money has to be created somehow and that there has to be a starting point somewhere. There is also growing awareness that banks have the power to create money out of thin air.

The big secret is that the Federal Reserve simply orders money to be printed from the US Mint, then loans it to the US Government, and also to banks, who in turn loan it to people like you and me when we want to buy a house or car, or use a credit card for shopping or cash withdrawals... but the catch is this: This is an over simplified way of putting it, but, for every $10 they lend, they demand that $11 be paid back, even though there is only $10 in circulation at the time. So in order to pay back that extra dollar, our gov has to take out Another loan, and so on and so on until the time will come that they will stop lending us money, but still demand to be paid back. Well if there is no money left to pay them because they wont lend us any more, we have to give them something else tangible of value... like natural resources, or land. Basically they ate slowly but surely stealing our nation right out from under us.

Start here. It is an interesting read.

House of Commons - Debate on money creation

It is unfortunate that it is so little understood by the public that money is created by the banks every time they make a loan. In effect, the banks have a virtual monopoly—about 97%—over domestic credit creation, so they determine how money is allocated across the economy. That has led to the vast majority of money being channelled into property markets and the financial sector. According to Bank of England figures for the decade to 2007, 31% of additional money created by bank lending went to mortgage lending, 20% to commercial property, and 32% to the financial sector, including to mergers and acquisitions and trading and financial markets. Those are extraordinary figures.

It is roughly the same in every country.

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a reply to: Azureblue

Money is fake, there is no value except that which we, the people attribute to it.

If today everyone loses faith that a dollar is a dollar.... It is just so much fancy paper.

The Federal Reserve can indeed just print as much as they want at any time....

a reply to: Azureblue

I hope more and more people start to question how our money is created and exactly what the central banks role is as it seems to be merely to leach off of society. The question is why doesn't our Government have its own bank to print its money and cut out this extra level of unnecessary expense we all have forced on us.

money vs currency

originally posted by: Shiloh7
a reply to: Azureblue

I hope more and more people start to question how our money is created and exactly what the central banks role is as it seems to be merely to leach off of society. The question is why doesn't our Government have its own bank to print its money and cut out this extra level of unnecessary expense we all have forced on us.

Kennedy tried..... How did that turn out for him?

Just saying.......

They will kill as many people as they have to, they are a scary uncaring, unneeded lot, that justifies their existence by creating problems that they then solve in their favor.

You could type your thread title into Google yourself and probably have an answer to the question in a few seconds could you not?

originally posted by: Shiloh7
a reply to: Azureblue

I hope more and more people start to question how our money is created and exactly what the central banks role is as it seems to be merely to leach off of society. The question is why doesn't our Government have its own bank to print its money and cut out this extra level of unnecessary expense we all have forced on us.

If the goverments create the money none of us would have to pay tax as the reason we all have to pay 'tax' is because the govt has to borrow money from the banks so the 'tax' we pay is actually the interest the govt pays on the money they borrow. They borrow becaue they are not permitted to print their own by the banks.

If govt could create all the money needed there would plentry of money for all the roads, hosptals, schools, the welfare system for individuals, a livable wage for pensions, the unemplolyed etc,so you can see some reasons here why govt would not want to always create the money needed becuase it would demosntrate to the people that money does not need to be scarce for the govt.

This would expose their idelogical hatred for the poor, the working poor and the near poor as they would be denyed their excuse that cuts have to be made because there is not enough money to go around as they are fond on implying.

a reply to: Azureblue

Oh, and by the way, the "Federal" Reserve is not owned, or ran by, the government. Its a privately owned institution. The word "Federal" is meaningless here. They probably call it that just so people will assume its a part of the federal government and not realize that our elected officials have no control over our money supply. They don't have to answer to anyone, or even answer any questions they don't feel like answering. Which also means they can print up however much money they want and hand it over to, or lend it to, whoever they want. And they basically have our nation held as ransom because they have the power to crash our economy whenever they want.

Storks from the Treasury Building.

a reply to: johnwick

Money is fake, there is no value except that which we, the people attribute to it.

The same may be said of any commodity. If no-one wanted gold or pepper, they would have no value either.

What makes money different is that both buyer and seller know exactly how much value it represents. This cannot be said of any other commodity.

There have been many different types of monies throughout history including things like shells, gold or as is popular now, debt.

Bonds are one popular method used to generate money by governments and corporations and works off the same principle as taking out a loan.

The banks balance sheet is one tool that is also used to create new money. It works by the bank maintaining an overall net worth as different assets are moved around. For example, the iou you give the bank to pay of a house loan is the justification used to make new money enter the economy. On the surface the bank has not gained anything by providing the loan as the net position of the bank is still the same, except for some fees and interest to help cover cost, shareholder profit, ect...

Once the loan is paid back then all the money that was 'created' is also now 'destroyed'. One reasoning the banks use for this policy is that they make money like refineries make oil as it is their trade. I do give this financial trick some respect as it does help filter money to those that can make responsible use of it. Without prudent measures any system will collapse, as countless economic woes demonstrate.

While banks are not perfect, they are a harder to con, rip off and steal than most.

a reply to: Azureblue

If govt could create all the money needed there would plentry of money for all the roads, hosptals, schools, the welfare system for individuals, a livable wage for pensions, the unemplolyed etc

No, there wouldn't, sadly.

Inflation would result, and in no time at all there would be exactly the same amount of money as before.

Governments don't and can't create money. They consume it.

a reply to: Azureblue

We all know that money has to be created somehow and that there has to be a starting point somewhere.

Governments "print it". No matter the denomination a bit of paper has little intrinsic value, costing but a few pennies to produce.

Automatically its a dollar (or a hundred), thats some profit margin. Then they loan it out, charging interest (more profit), the government gets tax, the banks get interest, the corporations get mark up, and all for a few pennies.

Wat a scam. It works because people continue 'buy' into it.

PS: The government doesn't actually print the money, the Fed does. The Fed is the banks. The cost of printing is also passed to the "consumer".

a reply to: Azureblue

Cash started as receipts from goldsmiths that represented the amount of gold you stored with the goldsmith. Goldsmiths would sell gold, buy gold and store the gold for you. A smart or greedy goldsmith eventually figured out you didn't really need to have gold to sell gold. He could just convince them to store the gold with him take another precious commodity from them and write a receipt for gold. He could do this because very rarely would anyone ask for their gold to buy something with it, they would just give the receipt for the gold to buy something. This eventually evolved into the cash we use now. US cash is simply a treasury note, it says so right on it. Which means it's just paper and not backed by any commodity and only has value because people are willing to use and accept it. Goldsmiths still exist today they are called bankers now.

originally posted by: 3n19m470
The big secret is that the Federal Reserve simply orders money to be printed from the US Mint, then loans it to the US Government, and also to banks, who in turn loan it to people like you and me when we want to buy a house or car, or use a credit card for shopping or cash withdrawals... but the catch is this: This is an over simplified way of putting it, but, for every $10 they lend, they demand that $11 be paid back, even though there is only $10 in circulation at the time. So in order to pay back that extra dollar, our gov has to take out Another loan, and so on and so on until the time will come that they will stop lending us money, but still demand to be paid back. Well if there is no money left to pay them because they wont lend us any more, we have to give them something else tangible of value... like natural resources, or land. Basically they ate slowly but surely stealing our nation right out from under us.

I just read this thread and that video came to mind right away.

Dead on analysis my friend

originally posted by: Shiloh7
a reply to: Azureblue

I hope more and more people start to question how our money is created and exactly what the central banks role is as it seems to be merely to leach off of society. The question is why doesn't our Government have its own bank to print its money and cut out this extra level of unnecessary expense we all have forced on us.

The last President who wanted to do what you talk about was JFK. We all know how that worked out.

No president has dared try since. The banksters are in full control. We were warned about this. It will NOT end well.

Watch the "American dream" video above.

originally posted by: kwakakev


The banks balance sheet is one tool that is also used to create new money. It works by the bank maintaining an overall net worth as different assets are moved around. For example, the iou you give the bank to pay of a house loan is the justification used to make new money enter the economy. On the surface the bank has not gained anything by providing the loan as the net position of the bank is still the same, except for some fees and interest to help cover cost, shareholder profit, ect...

Once the loan is paid back then all the money that was 'created' is also now 'destroyed'. One reasoning the banks use for this policy is that they make money like refineries make oil as it is their trade. I do give this financial trick some respect as it does help filter money to those that can make responsible use of it. Without prudent measures any system will collapse, as countless economic woes demonstrate.
.

I sugges you read the book I referenced. From the above I can see that you can learn a lot from it.

Sometimes banks sell housing loans re the subprime cause of the 2008 crash and 000,0000s of evictions but they dont tell the borrower that as the borrow may jump for joy knowing they no longer have a contract with the bank and knowing they dont have a contract with the buyer of their mortgage either.

Letter from borrower to new onwner of the loan .... If you beleive you have a contract with me to make payments to you please provide an original copy of the first person to first person contract signed by yourself, or the person authorised by your organsation to bind your organsation in contract, and myself that I agreed to make payments to you ..........

Now, do you see the deceit the bank has enaged in by not telling you they sold your loan. Now you can see why they dont tell you either

Did you the borrower sign a contract with the buyer of your loan to make payments to them ???????

originally posted by: Astyanax
a reply to: Azureblue

If govt could create all the money needed there would plentry of money for all the roads, hosptals, schools, the welfare system for individuals, a livable wage for pensions, the unemplolyed etc

No, there wouldn't, sadly.

Inflation would result, and in no time at all there would be exactly the same amount of money as before.

Governments don't and can't create money. They consume it.

Could you please tell me why you think inflation would result if government created money when it does not appear to happen when the fed prints the money?? I am most interested in why this thinking exsists.

thanks a