Modern Money Mechanics (FREE pdf)

Originally posted by Unknown Perpetrator

Also here's a graph of the Feds balance sheet. keep in mind that the BoE, ECB and other central banks have been up to the same tricks



They're stalling paying the piper and the real problem is not your current wages and conditions which is a serious issue but the prospect of working until you die as your pension fund will be worthless and most will probbably never own their own home as the financial world systemically collapses.

The people have had enough

Yes, the people have had enough... even those who have never heard of Zeitgeist addendum or modern money mechanics... and let's hope that the message is spread.

Thanks for posting the graph too...

I had letter from the people who handle UK pension funds today, saying I owed £392 towards my pension for the year 2006-2007. They also said i dont have to pay it, I have until 2013 to pay it and if i dont that year will not be counted towards my pension (not that it will be worth anything by the time I retire anyway).

To date, i have 11 years of contributions towards my pension... but i must have 30 years worth to be able to receive a pension... I'm nearly 40, so i guess i wont be retiring until I'm 70(ish)

all pretty bad in my opinion.

i would like ti get a little more in this m1 m2 m3, thing what are they,

Originally posted by jay.mo
i would like it get a little more in this m1 m2 m3, thing what are they,

Here you go, growth of each of these money types (except M0/1?) is far greater than the growth of the economy or production at any time. With banks holding funds, today in the crunch... m2-m3 isn't readily available... i.e credit and loans... banks want M0-1 to boost their balance sheets because of the toxic credit investments they hold if they don't have the physical cash to offset these losses, they're bankrupt... here in the UK you'll have noticed that banks are advertizing for savers, not borrowers.

They need to improve their fractional reserve ratio by holding more cash or raising more capital. Money is scare hence no credit.

================================

M0: Physical currency. A measure of the money supply which combines any liquid or cash assets held within a central bank and the amount of physical currency circulating in the economy. M0 is the most liquid measure of the money supply. It only includes cash or assets that could quickly be converted into currency.

M1: Physical currency circulating in the economy + demand deposits (i.e. checking account deposits). This is a measure used by economists trying to quantify the amount of money in circulation. M1 is a very liquid measure of the money supply, as it only contains cash and assets that can also be used for payments.

M2: M1 + time deposits, savings deposits, and non-institutional money-market funds. M2 is a broader classification of money than M1. Economists also use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions. [9] M2 is a key economic indicator used to forecast inflation.

M3: M2 + large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets. This is the broadest measure of money commonly used and is used by economists to estimate the entire supply of money within an economy.

Fractional-reserve banking
The different forms of money in government money supply statistics arise from the practice of fractional-reserve banking. Whenever a bank gives out a loan in a fractional-reserve banking system, a new type of money is created. This new type of money is what makes up the non-M0 components in the M1-M3 statistics. In short, there are two types of money in a fractional-reserve banking system[12][13]:
central bank money (physical currency)
commercial bank money (money created through loans) - sometimes referred to as checkbook money[14]

In the money supply statistics, central bank money is M0 while the commercial bank money is divided up into the M1-M3 components. Generally, the types of commercial bank money that tend to be valued at lower amounts are classified in the narrow category of M1 while the types of commercial bank money that tend to exist in larger amounts are categorized in M2 and M3, with M3 having the largest.

reply to post by Extralien


I found a copy in HTML format at one point. I can't remember where I found it, but ran across it while cleaning my hard drive, and reposted it here:

ryanhunt.biz...

Hello from Slovenia ...

Firstly i will thank you for that post and MMM . When i watched Zeitgesit addendum i sad to myself to try to find that, but then i get occupated with other stuff for some weeks and now i get it it just popped into my head

I need to research little bit of our central banks and who is responsible in our country for "making money" so that i could trasnfare this to our people... And i know that you guys in the states needs to make a strong movement and colapse that system if the other world will want it to follow (also China is very strong here) .
Just call back in the memory the scene from movie Fight club (i am NOT pointing to some violent act here i know it can be solved peacefully)

I have also one question, is kind-a offtopic... If i publish link (on my homepage) to some downloadable documents that are copyrighted but they are on some other server uploaded by some unknown user , do I come in conflict with copyrighted rules?

sorry 4 my english, its kinda late here ( 5 am)

peace and harmony to all

I'm not sure why but I can't reach any of this stuff through the links posted.
So I decided to put my source in: www.rayservers.com...

www.rayservers.com...