Out of Thin Air: How Money is Really Made

Out of Thin Air: How Money is Really Made

news.yahoo.com

The real trick to funding the $700 billion bailout of the financial industry: Make more money. However, most of that money never actually gets printed at all. Rather, it's infused into the economy by the ultimate ATM: the federal government. And it grows and grows by a rather mystical process that works only when everyone plays the lending game.

Virtual cash

(visit the link for the full news article)

Nice!!!! Finally someone tells the truth about how the American Currency is made. They actually tell the truth about Fractional Reserve Lending and that the dollar is backed by nothing more than faith and debt.

Granted this is not CNN. It is LiveScience via Yahoo News, but still better than nothing.

They actually also imply that Fractional Reserve Lending is at the heart of the problem of the current financial crisis.

As much as they are actually telling the truth in this article, I still don't think most people will understand how absurd the Federal Reserve is because they probably don't understand history and the State should be creating it's own currency. Meaning I don't think most people will understand the implications of the truth simply because a lack of perspective. None the less it is a beginning...

news.yahoo.com
(visit the link for the full news article)

reply to post by Anonymous Avatar


Libertarians have been telling everyone since the 1930s after JP Morgan created the Fed and siezed control over the dollar's printing. Nobody listened.

Actually money creation comes not only from the federal government, but also from banks. Banks only keep a fraction of their loan book amounts as a safeguard. In effect they loan out more money than they have, which in effect creates money and creates a bubble of inflation in goods and house prices. This evil is called fractional reserve banking.

And yet they shun the libertarian suggestion to return to full reserve banking and the gold mark. Its a barbarous relic, yes, but at least its real.

Originally posted by 44soulslayer
reply to post by Anonymous Avatar

 

And yet they shun the libertarian suggestion to return to full reserve banking and the gold mark. Its a barbarous relic, yes, but at least its real.

I am on the same page. No bankers should be in control of a State's currency. It let's greedy fat white guys run the country and now the world since most countries use a Central Bank.

Anyone ever wonder why Venezuala namely, Chavez, are such bad guys according to the US right now?