Question: Where does the physical money come from?

Discussion in 'Currencies' started by primaticves, Jan 31, 2017.

  1. primaticves

    primaticves Member

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    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,
     
  2. Jislizard

    Jislizard Well-Known Member Silver Stacker

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  3. primaticves

    primaticves Member

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    Thanks. So the Fed would just deposit money into the banks accounts electronically. Got it
     
  4. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    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.
     
  5. Killface

    Killface Well-Known Member Silver Stacker

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    ...and the US will probably suffer the same fate as the Romans eventually...
     
    Arch Stanton likes this.
  6. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    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    I mean no one really puts a specific date on when the British Pound was superseded as the reserve currency by USD but one thing is for sure we are in the middle of transition.
     
  7. Annie

    Annie New Member

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    I don't know that this specifically answers your questions, but I love this 7 minute video explaining the Federal Reserve.
     
  8. TheEnd

    TheEnd Well-Known Member

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    The Fed loans the U.S goverment all those Trillions of $$$.......... PLUS interest.

    Who pays the principal + interest?

    The taxpayers!!! :eek:
     
  9. tolly_67

    tolly_67 Well-Known Member

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    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.
     
  10. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    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.
     
    Last edited: Aug 5, 2017
  11. systematic

    systematic Well-Known Member

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    Last edited: Aug 5, 2017
  12. systematic

    systematic Well-Known Member

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