Hey guys, I was watching this video from Mike Maloney on YouTube (https://www.youtube.com/watch?v=iFDe5kUUyT0). There was a part where he says that the Fed writes a blank cheque to buy the bonds. I understand that currency is created when the bank receives the cheque but where does the bank get the physical money from? Thanks,
Only about 8% is physical money, the majority only exists digitally. http://money.howstuffworks.com/currency6.htm
Exactly like Cesar would send a letter of credit to Gaul or Alexandria, before the letter had to be delivered now it is send electronically.
100% though I think it is too early to predict when the change will come for Renminbi to take over. I mean no one really puts a specific date on when the British Pound was superseded as the reserve currency by USD but one thing is for sure we are in the middle of transition.
I don't know that this specifically answers your questions, but I love this 7 minute video explaining the Federal Reserve.
The Fed loans the U.S goverment all those Trillions of $$$.......... PLUS interest. Who pays the principal + interest? The taxpayers!!!
I don't know where the physical money comes from and I sure have no f****** idea where it goes either. Each fortnight it comes in and ..."poof'...like magic, it's all gone. It's a bloody conspiracy.
Unsolicited advice: Bite the bullet on saying 'No' to people around you asking you to pay for things; conflict is inevitable, accept it Issue yourself a bill for 7.5-10.0% of your net income, always pay that bill first Generalization Regular Savings = Regular Income - Regular Expenditures Almost everyone has 'leaks' in the personal/household budget they didn't know about, until they made an effort to investigate it.