posted on Oct, 7 2006 @ 07:53 PM
Originally posted by tazadar
You don't know what you are talking about. The Fed owns more than 40% of the national debt, that's $4 trillion. Interest on the money issued by the
Federal Reserve is not where the international bankers make most of their money. The action is in stock market manipulation, foreign currency trade,
world economies, wars. Actually, they are so beyond wealthy, it's not about money anymore. It's control of the world. What's great about all the
gold to an Emporer if he has no control over people?
If you deposit $1000 with me (bank). I lend out $900 and keep $100 in the vault, but I still record your account with $1000. Have I not just create
$900 out of thin air?
I won't bother to read the rest of your post. You don't know what you're talking about.
This argument is retarded. There is no creation of money here. There is a creation of credit and debt. The bank gave $900 of the $1000 it recieved
as a loan to a third party. It pays interest to the depositor for the $1000, gets interest from the loanee for the $900 at a higher rate, and makes a
profit as a middleman. As long as the bank has enough money to pay its depositors when they want to withdraw their money, there is nothing wrong
As long as a bank is sufficiently large, it will be able to pay any depositors who wish to withdraw their money on a given day. If too much money is
withdrawn in a given period, thanks to our modern system, banks can borrow additional money from the federal reserve to pay out to those depositors.
Now the bank won't make as much money, because they will usually have to pay a higher rate to the fed than to a depositor, but the world goes on.
This allows a depositor to recieve interest without the risk of loaning directly, so the bank is providing a service to both parties.
You, for some reason, think banks should only operate as safety deposit boxes. I don't get it.
Loans are incredibly useful, and I'm glad they exist. The only problem occurs when an entity is irresponsible with its budget and goes farther into
debt than it can pay out(as our government is likely doing).
You can essentially ignore any interest our government pays to the federal reserve, because the federal reserve returns the majority of that money to
the government, along with all of the interest on the money in circulation. I chose not to include that figure because its not important. The
federal reserve only pays its stockholders a 6% dividend on the amount invested. These stockholders are all member banks. It has expenses in
printing money and must save to increase its assets(such as what it holds in the national debt). After these considerations, all of the money goes
back to the federal government.
The fed only holds about $1 trillion of the national debt. See here:
Mod Note: Big Quote – Please Review This Link.
[edit on 7-10-2006 by DontTreadOnMe]