Creating Money from Thin Air!

When I was very young, my parents explained how they could go to the bank and borrow money, it involved paying back MORE money than they borrowed because the bank charged interest. This absolutely perplexed me, where did this extra money they charge come from? It just poofs into existence from nowhere!

If the Federal Reserve charges interest on every dollar they give the government, the people owe the Fed more money than exists.

American Debt in 2004 I believe it's over $2.4T now... (This is non-mortgage debt)

So... what happens when Americas private debt exceeds more money than exists? How much money is the Fed going to continue pumping into our economy? If the Fed stopped creating money from thin air, what would happen? Finally, why does the Fed need to create money out of thin air? To be honest, I'm not really looking for an answer to these questions, I hope to get people questioning the things they've grown up with.

I understand how and why banks charge interest (I own a car and have a mortgage)... To offset risk perhaps banks should, instead, be a bit more picky about who they give loans to or maybe create a more strict legal penalty for defaulting on a loan? Of course, the best thing would to give people enough money so they don't NEED to take out loans... But that branches out into another topic, and I don't want to go there.

Just because we grow up with a practice that has been going on for generations, it does not mean that practice is good or fair; it means that people don't always examine the world around them.

I had a short discussion with my brother about this... and he completely failed to see my point, I hope I explained it better on here.

d00d. The federal reserve bank of america is a joke. It prints money, out of thin air. The board meetings they have a secretive. Apparently the US government owes about 9 trillion dollars in debt. The whole thing is a crock. The federal reserve bank money is backed apparently by 10% gold value. So the federal can print off $1000 worth of notes and lend them out, as long as they have $100 worth of gold in their vaults. Then they can pring off another $10,000 worth of notes, and keep $1000 worth of notes in thier vault. d00d the federal reserve is a joke. It prints money out of nothing. Its a big finiancial joke. Oh by the way, you dont HAVE to pay personal income tax. There is no law for it. And pretty much the IRS is illegally thowing people in jail for not paying their income tax....

Angry Danish, there is no risk for the banks.

If you don't pay your mortgage, they get your house, plus all the payments you have made.

US national debt is at $9 tril. and has been approved to be run up to $10 trillion.

The Federal Reserve "owns" the US and rents it's resources out. Who profits from this?

Bankers, national, and international. People in government make money off of this system by getting "kickbacks" for keeping and instilling laws that ensure "their" ability to live off the masses.

Wanna know who is really in control. Where do the taxes of Denmark and Australia go to? Royal Commonwealth, AKA Queen Elizabeth II.

And every country that owns a piece of American debt, including America, are in debt to the London Interbank. Take Japan for example. They own the largest amount of American Debt. Who owns their national debt?

Bet is has the term Royal attached to it.

I thought this VID was pretty interesting

Originally posted by stompk
Wanna know who is really in control. Where do the taxes of Denmark and Australia go to? Royal Commonwealth, AKA Queen Elizabeth II.

Dont be ridiculous. The taxes of Australia stay in Australia. Just as im sure the taxes of Denmark stay in Denmark. Just because we are a "colony" of England ie, part of the commonwealth countries, doesn't mean the taxes of all the commonwealth countries gets put in a big pool of cash and then dispersed out among the many. Yes the Queen is the figure head of society who can say "Prime Minister of Australia, from this day forth you are dismissed from duties and will be replaced by another candidate who will, i'm sure do much better than you have". The queen has done that before. I dont know why she did but it has happened once that i know of.

But back to the subject. The taxes from Australia stay in Australia. Though Commonwealth countries do have alliances such as during war time, etc. ie. Britain gets declared on by for instance, Germany into a state of War. Australia is now involved.

$US Deficit: 9.something trillion

Iraq Quagmire: (Oct 2007) 462 billion

Rummy "missing" from Pentagon 9/10/01: 2.3 trillion

&US Housing industry: 2.3 trillion

Tie these figures in w/ price of dollar to other currencies, hedge/mutual fund scam industry, collapsing stock values soon, winter is usually downtime + full subprime hasn't been outed yet in US, Europe's in shambles from this, credit interest rate adjustment, peak/price of oil -- new dark age economic collapse t minus ?

reply to post by Lecter


Awesome link. Thanks Lecter. A long watch, but well worth it. Plus some great links to other sites. I think every American should see this. I am always fascinated by how much I really don't know about our monetary system even at the age of 50. They keep us down-trodden. That is the plan. I have a home loan, a business loan, credit card debt and two car loans. I am a slave to this system. What an eye-opener, thanks for sharing and a star from me. And hat tip and star to OP, great link.

regards...kk