What Is Money ?Well, it's basically a piece of paper with images and text printed on it. Despite all the BS about currency as the reflection of the nation's economy, the backing of reserve assets, this bank note you are looking at is nothing more than that: a piece of paper with ink on it.A pre-1971 $20 note. Notice the mentions "gold certificate" and "twenty dollars in gold coins payable to the bearer on demand"Think about it. For the banksters to print a 20 dollar bill, all they need is paper and ink. How much do you think it costs to print a 20 dollar bill, considering that millions are printed at a time? About 10 cents. But when this note is presented to you, it has magically become worth 20 dollars of very real work, goods or services. The same goes for 50, 100, 500 etc. bills.That's the most important thing to understand: money is created out of nothing. But the lie is so big, so repellant to the mind that we have much difficulties accepting this fact.Of course it hasn't always been this way. For most of modern history banknotes were backed against a tangible asset, usually gold. So you could go to a bank and exchange your note for real physical gold (see picture on the right). But since 1971 the dollar is not convertible into gold anymore. It is backed by nothing.So its only value is the one we ascribe to it. Collective belief is a prime factor in the kind of magical economics we're talking about here. Market sentiment is a powerful factor for the best and for the worse. I will develop this point later.Who creates money?Money creation can be a good thing. In the past, nations could directly create money as a fair reflection of their economical states, interest free, in order to stimulate their development. But the time of sagacity in economics is long gone. Today, nations borrow insane amounts of money, with a positive interest rate. This money is created by a few private banks, also known as central banks and does not even reach the citizens pockets. Yes you read it right, this bank note you are holding was created by a member of the financial 'elite' out of thin air. But the sweat, the energy, the work you spent to earn it is very real.The fallacy used to justify the printing of money by private banks is that governments are unwise and if they were allowed to print money, they would create far too much and destabilize the market. That is a lie, the record for the most money ever created at one time occurred in the aftermath of 2008 crisis (see "quantitative easing", another jargon term that simply means "print like crazy") and it was private bankers, not governments, that created it.How much money is createdGrowth of M1 (red) and M2 (Green) monetary mass indicators (1981-2013)The short answer is: "We don't exactly know but it sure is a lot". The quantity of money is called "monetary mass". Depending on the kind of money (coin, note, travelers check, credit card, saving, etc.), monetary mass is divided in sub-groups labeled M1, M2, M3, etc.The problem is that the US Federal Reserve, (which is not American, federal or a reserve, but a private bank serving exclusively the interest of its owners) stopped publishing the figures relative to the total amount of money it creates. Only partial figures (M1 and M2) are disclosed and they show a dramatic unsustainable increase. But M3, the most extensive indicator, has not been released since 2006.Why not publishing M3 if its level was reasonable?Read More @ http://www.sott.net/article/290835-2015-the-BRICS-checkmate-Western-financePLUSWORLD BRACES FOR END OF FED'S 'EASY MONEY'“Tightening by the U.S. Federal Reserve will have turbo-charged effects on a global financial system addicted to zero rates and dollar liquidity.”Supporting his concern, yields on 2-year U.S. Treasuries have surged from 0.31pc to 0.74pc since October, and this is the driver of currency markets.Under the leadership of Federal Reserve chair Janet Yellen, the Fed has engaged in a “pivot,” shifting concern from stimulating job growth to worrying about inflation, with the concern that without a tightening in Federal Reserve monetary policy, the U.S. economy could experience inflation as high as 5 percent in the next two years, a level not experienced in the U.S. economy since 2005.Read More @ http://nesaranews.blogspot.co.uk/2015/01/world-braces-for-end-of-feds-easy-money.html?m=1
E-mail me when people leave their comments –

You need to be a member of Ashtar Command - Spiritual Community to add comments!

Join Ashtar Command - Spiritual Community

Comments

  • Money is the ROOT OF ALL EVIL ..Money system has been misused and has become CONTROL, GREED AND CORRUPTION
This reply was deleted.

Blog Topics by Tags

  • - (955)

Monthly Archives

Latest Activity

AlternateEarth posted a blog post
The House Armed Services Committee’s draft for the 2027 National Defense Authorization Act contains a section buried deep in the document establishing an alarming partnership between the U.S. and Israeli militaries.Bowne Report: Section 224 Will End…
5 hours ago
Roberto Durante left a comment on Comment Wall
"The best action ever, already signed and shared with all my friends, even those who are asleep and label me as far-right, still with their heads in the sand. Although it's not in Spanish, this petition is worth reading and signing.…"
5 hours ago
Roberto Durante left a comment on Comment Wall
6 hours ago
AlternateEarth commented on AlternateEarth's blog post Google to Dump 32 Million Diseased, AI-Bred Mosquitoes on Florida and California
"I swa a doc on this but it was done by humans in China-the males were-are released on a small island -very near the coast that has a severe mosquito problem."
7 hours ago
AlternateEarth commented on AlternateEarth's blog post Google to Dump 32 Million Diseased, AI-Bred Mosquitoes on Florida and California
"From the AI;
Yes, there is a real proposal behind those headlines, but the wording is often misleading.

Google itself is not releasing "diseased" mosquitoes. The proposal comes from Verily, a subsidiary of Alphabet (Google's parent company),…"
7 hours ago
AlternateEarth left a comment on Comment Wall
"The Demoncraps threw an elderly lady in jail for 4 years for exposing election fraud in Colorado. Trump pressured CO gov and she was released.
Tina Peters Released From Colorado Prison…"
7 hours ago
AlternateEarth commented on AlternateEarth's blog post Google to Dump 32 Million Diseased, AI-Bred Mosquitoes on Florida and California
"It does sound like sci fi but apparently the T admin is to decide on whether or not to sign off on it this week."
7 hours ago
Drekx Omega posted a status
I'll leave AC for now and wait for members to return to active engagement and communicative interactions, at some stage....Drekx
9 hours ago
More…