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How money is created


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Money is created when the Central Bank purchases bonds from the government. 

 

The government bonds are "debt" which is repaid in taxes to the Central Bank with interest. 

 

When this cycle is executed it is known as a "fiscal" policy. 

 

The Central Bank can also lend to retail Banks and other businesses creating money in the process.

 

This is how money is created in today's world as far as I know.

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On 5/23/2021 at 5:40 PM, Connor said:

Money is created when the Central Bank purchases bonds from the government. 

 

The government bonds are "debt" which is repaid in taxes to the Central Bank with interest. 

 

When this cycle is executed it is known as a "fiscal" policy. 

 

The Central Bank can also lend to retail Banks and other businesses creating money in the process.

 

This is how money is created in today's world as far as I know.

The link below is the Bank of England's public response to Quantitative Easing. 

 

https://www.bankofengland.co.uk/monetary-policy/quantitative-easing

 

Quantitative Easing (QE) is the program which is used by the Bank of England to issue policies which allow the purchase of government bonds along with corporate stock and other assets which thus creates money in the process.

 

The latest round of Quantitative Easing (QE) created £875 billion pounds for government bonds which essentially is public debt that is a financial response to the COVID19 pandemic. The Bank of England also issued £20 billion to purchase corporate stock. Totalling the amount of Quantitative Easing (QE) for November 2020 at £895 billion.

 

Quantitative Easing was introduced as a emergency program for the 08/09 global crisis. Since then the Bank of England has issued Quantitative Easing (QE) around every 2 years and the amount of money being "created" has grown exponentially from £200 billion in 08/09 to £445 billion in 2016 and then to £895 billion in 2020.

 

 

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So treasury "makes" it, BOE buys it, then uses it to buy government debt(money they've borrowed from BOE?), which is paid back via taxes we pay?

 

im so confused on this process as it just seems to go full circle with no real effort catching us lot in the process. if im right, then they literally monetary incentive to print money because they make money from the interest off of it; meaning, no matter how healthy things are, they need it to be in debt for them to make money.

 

Not sure I got this right, but any clarification would be great.

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On 10/28/2021 at 2:53 PM, BTCE said:

So treasury "makes" it, BOE buys it, then uses it to buy government debt(money they've borrowed from BOE?), which is paid back via taxes we pay?

 

im so confused on this process as it just seems to go full circle with no real effort catching us lot in the process. if im right, then they literally monetary incentive to print money because they make money from the interest off of it; meaning, no matter how healthy things are, they need it to be in debt for them to make money.

 

Not sure I got this right, but any clarification would be great.

Money is created by central banks and the member banks that are allowed to do so. It is fiat money, and is literally created out of thin air. Governments lend money in the markets by issuing bonds, which are bought by central banks and large investors. Contrary to large investors, central banks have no money unless they "print" it. So effectively what happens is, that in exchange for a pile of paper with fancy printings on it, central banks get as collateral the promise of a government to use their extortion machine, generally called revenue department or tax collection offices, to pay back that what was created out of thin air.

 

And that is what is called a parasitic scheme.

 

Member banks also create fiat money out of thin air. Not by printing, by simply making two ledger entries, one on their balance as accounts receivable and the other on your account with them as payable. Commercial banks can issue loans (create money) to about 10 times the balance value of their assets. Again, they don't have the money, but simply create it out of thin air.

 

That's the second stage of the parasitic scheme.

 

So, effectively you pay interest on a loan, which interest represents real value (the fruits of your labor), and which is calculated over something created out of thin air.

 

The 3rd stage of the parasitic scheme to transfer wealth from creators of true value (fruits of your labor) to creators of thin air currency, called fiat money.

 

The whole system is set up in a very complex way, with many layers and other smoke and mirror tricks, to make it difficult for the common man to figure out how he is scammed out of the fruits of his labor. If you understand simple book keeping, debit and credit, and how to spread that over balance sheets, it becomes crystal clear. Keep in mind that bank balance sheets are opposite of that of their "clients".

 

But the core is, interest. That is where real value is.

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On 10/28/2021 at 9:53 AM, BTCE said:

So treasury "makes" it, BOE buys it, then uses it to buy government debt(money they've borrowed from BOE?), which is paid back via taxes we pay?

 

im so confused on this process as it just seems to go full circle with no real effort catching us lot in the process. if im right, then they literally monetary incentive to print money because they make money from the interest off of it; meaning, no matter how healthy things are, they need it to be in debt for them to make money.

 

Not sure I got this right, but any clarification would be great.

 

Yes. Usury or interest is what the elites have been conning the public with for centuries.

 

Look at this chart before Covid for the UK.

 

File:UK budget charts 2019-2020.png - Wikimedia Commons

 

 

Total expenditure was about 830 billion of which 43 billion or nearly 6% pf peoples' taxes went to central banks in interest, for money they lent Government which literally dosen't exist and isn't backed by gold or anything.

 

In 2020 the British Governments has borrowed a staggering 300 billion because of Covid. That's the most since the second world war and a massive 35-37% increase on the previous year. I estimate the interest payments to banks by 2023 will be near 80 billion a year at least.

 

Research the scam which is fractional reserve lending.

 

The Bradbury Pound model is good, but you need a trustworthy Government in power!

 

This video was all over Youtube from about 2015, but I can't find a single one now.

 

UK Column video "Bring back the Bradbury Pound"

 

https://www.bitchute.com/video/puFoYvXbvSNA/

Edited by Golden Retriever
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Not directed related to money creation, but this video is worth watching from 3 minutes. I'm no fan

of Noel Edmonds, but he's on the money! when he says "Labour would cream it" if they cleaned up the Corporation of the City

of London"

 

Labour or any party would have to inform and educate the population how they have been slaves to the financial system

all of their lives, but none will because the Rothschilds and other banking oligarchs have far more power than the politicians

citizens still blindly vote for.

 

 

Edited by Golden Retriever
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21 hours ago, Ween Dwijler said:

The 3rd stage of the parasitic scheme to transfer wealth from creators of true value (fruits of your labor) to creators of thin air currency, called fiat money.

 

The whole system is set up in a very complex way, with many layers and other smoke and mirror tricks, to make it difficult for the common man to figure out how he is scammed out of the fruits of his labor. If you understand simple book keeping, debit and credit, and how to spread that over balance sheets, it becomes crystal clear. Keep in mind that bank balance sheets are opposite of that of their "clients".

 

But the core is, interest. That is where real value is.

 

You missed the bit where if the debtor is unable to pay back the loan, the creditor is able to seize assets (actual wealth) in order to 'recover' that debt. If you fail to keep up repayments on your mortgage, your house can be repossesed by the bank. You end up homeless, and the bank gains your house as an asset of value. An asset bought with money that never existed in the first place.

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6 minutes ago, Grumpy Owl said:

 

You missed the bit where if the debtor is unable to pay back the loan, the creditor is able to seize assets (actual wealth) in order to 'recover' that debt. If you fail to keep up repayments on your mortgage, your house can be repossesed by the bank. You end up homeless, and the bank gains your house as an asset of value. An asset bought with money that never existed in the first place.

 

And this is what happened with the orchestrated imo financial collapse crica 2008/2010.  I hope I'm wrong, but Governments worldwide have seen unprecedented borrowing in the last year because of Covid (not facturing the current financial year). I do believe the world will face another Great Depression in the coming 2/3 years.

Edited by Golden Retriever
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49 minutes ago, Golden Retriever said:

with the orchestrated imo financial collapse crica 2008/2010

 

Back in 2017 I went through the gov given data and made two graphs:

 

Borrow_Per_Year.jpg.2b80a4b930dbdd52b22700b6ccd9d804.jpg

 

debt_to_tax.jpg.1b796442b36d3fd4e3c6aff85e7ece87.jpg

 

if that helps anyone (fuk me was I pissed off at the time!) .... I made a thread about it on the old forum but that is of course gone. I think it was 900 million they spunked on the banks in the end!

Edited by ink
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1 hour ago, Grumpy Owl said:

 

You missed the bit where if the debtor is unable to pay back the loan, the creditor is able to seize assets (actual wealth) in order to 'recover' that debt. If you fail to keep up repayments on your mortgage, your house can be repossesed by the bank. You end up homeless, and the bank gains your house as an asset of value. An asset bought with money that never existed in the first place.

;-)

 

Didn't miss that one, just didn't want to write a book about it. But you're right about that. If you look at it all, removing all the "scientific economical" blabla real wealth is created only by the fruits of labor. The biggest scam of it all is, talking people into having something now and pay it with future fruits of labor. At the price of extra fruit of labor (interest). It also enslaves people to the money lenders. Banks are particular devious in working out schemes to allocate wealth to their own pockets.

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1 hour ago, Golden Retriever said:

 

And this is what happened with the orchestrated imo financial collapse crica 2008/2010.  I hope I'm wrong, but Governments worldwide have seen unprecedented borrowing in the last year because of Covid (not facturing the current financial year). I do believe the world will face another Great Depression in the coming 2/3 years.

I don't think the collapse of the housing market in 2007 (that's when it really happened, the rest followed in slow motion) was orchestrated. It was simply a result of greed gone out of control and market parties that started to realize they had gone too far. So, they repackaged bad debt and sold it to large investors. When they started to realize they bought a cat in the bag, panic broke out.

 

Following that collapse, the largest (peaceful) wealth transfer in history commenced. Tax payers money was used to bail out the big institutions and when that run out of steam the money presses where started and kicked into high gear. What that does is called creating inflation. And the big scam with that was, to make the world believe (by falsifying monetary statistics on a large scale) that it was all blue skies and sunny days. And now, it comes to bite us big time. Is it new, original? No! We've seen it all before with the Weimar Republic inflation spiral.

 

So, where is the profit in it all? Simple. Lets say I borrow a 100 now and buy 1 ounce of gold for it. Then I start printing money and cause hyper inflation. Gold compensates for that, so 1 year later I sell the 1 ounce for 1000, pay back the 100 plus interest and will be left with a little short of 900 in the pocket. I use that to buy the equivalent in gold value ( a little short of 1 ounce) again and stash it in my safe. Result? I've got nearly 1 ounce of gold for free. The only work I did for that was printing money, that has no value of its own.

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2 hours ago, Golden Retriever said:

with the orchestrated imo financial collapse crica 2008/2010

 

"Swine flu" was the popular name for the virus which was responsible for a global flu outbreak (called a pandemic) in 2009 to 2010. It's a type of seasonal flu and is now included in the annual flu vaccine.

https://www.nhs.uk/conditions/swine-flu/

 

Channel 4 News Exposes Swine Flu Scandal 2009

Under 4 mins:

https://iffyfoo.com/index_video.php?id=56

 

Same period .... but the other way round .... bullshit virus after the money shit!

All is linked .... is it not?

Edited by ink
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51 minutes ago, Ween Dwijler said:

;-)

 

Didn't miss that one, just didn't want to write a book about it. But you're right about that. If you look at it all, removing all the "scientific economical" blabla real wealth is created only by the fruits of labor. The biggest scam of it all is, talking people into having something now and pay it with future fruits of labor. At the price of extra fruit of labor (interest). It also enslaves people to the money lenders. Banks are particular devious in working out schemes to allocate wealth to their own pockets.

I wanted to add to that the following.

 

The history of modern banking goes back to the Middle Ages in Italy. The original banks in Lombardy were “merchant banks” that Italian grain merchants invented. Interesting detail of that era is, that Jews fleeing Spanish persecution were attracted to the trade. At the time Christians were strictly forbidden the sin of usury, defined as lending at interest (Islam makes similar condemnations of usury). The Jewish newcomers, on the other hand, could lend to farmers against crops in the field, a high-risk loan at what would have been considered usurious rates by the Church; but the Jews were no subject to the Church’s dictates.

 

And that's why we are now here in trouble. Just think about all the big names in banking, what is their origin?

 

Is it a grand conspiracy? NO! Just people doing business without a moral grounding. Taking advantage of the character flaws of their victims. The simple fact that so many do it, only means it is a viable business concept, they don't necessarily work secretly together for it. But they do make secretly deals to maximize their profits with certain schemes. And that is called racketeering. Like fixing the daily gold fix in London, or that of silver or currencies.

Edited by Ween Dwijler
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13 minutes ago, ink said:

 

"Swine flu" was the popular name for the virus which was responsible for a global flu outbreak (called a pandemic) in 2009 to 2010. It's a type of seasonal flu and is now included in the annual flu vaccine.

https://www.nhs.uk/conditions/swine-flu/

 

Channel 4 News Exposes Swine Flu Scandal 2009

Under 4 mins:

https://iffyfoo.com/index_video.php?id=56

 

Same period .... but the other way round .... bullshit virus after the money shit!

All is linked .... is it not?

Yeah.....well......this thread is about money creation and directly related topics. Can you elaborate how Swine flu pandemics, or any other pandemic, is directly related to the creation of money?

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The global economy is all built on debt. The more money that is 'borrowed' (ie created out of thin air) and has to be paid back with interest, the more the debt increases.

 

If all 'borrowing' stopped tomorrow, there is not enough money in circulation around the world to pay off these debts.

 

 

If I was to 'lend' someone £100, it would be out of my own pocket. I could ask that person to pay me back £120, £12 a week for ten weeks. If they failed to pay me back, I've lost £100 of my own money.

 

Banks that loan money to lenders, simply by conjuring money out of thin air, and inputting numbers into the lender's account, only ever lose out on the interest repayments.

 

Many years ago now, I got myself into financial difficulties, thanks to frivolous use of credit cards and mail order catalogue accounts. I ended up taking out a loan from my bank, but while I successfully paid off my mail order catalogue account, and cleared down my credit card balances, I foolishly continued to use one credit card.

 

Despite starting a new better-paid job, I found myself in the position where I was struggling to meet my monthly repayments. I ended up signing up for an IVA (Individual Voluntary Arrangement) and while I had to endure five years of near-hardship, I am now 'debt-free' and have been for nearly ten years now and am in full control of my personal finances.

 

I owed my creditors nearly £20k, and probably paid back less than half of that during my IVA period, with the rest being 'written off'. I think it was NatWest, who 'loaned' me £15k, who were my biggest creditor. Looking back, knowing what I know now, they have only lost out on the 'potential interest repayments' over the term of that loan, they still got some of that money so haven't really lost out, have they?

 

 

 

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10 minutes ago, Grumpy Owl said:

so haven't really lost out, have they?

 

How can they lose .... they made it up from nothing?

They also insure against non repayment (of something they never had to lend in the first place) so get paid even if you don't pay .... and then sell (so collect again) the 'debt' to companies to collect (this is sold around 10% first time) .... who begin to try and use force to collect something which never had value. When that don't work they use the 'law' .... but the law is a lie ....

 

You created the 'value' .... they stole that from you and then charged you interest on top.

 

The whole system is a lie .... but the mass do not and have never cared as they have been and already are dead.

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20 minutes ago, ink said:

 

How can they lose .... they made it up from nothing?

They also insure against non repayment (of something they never had to lend in the first place) so get paid even if you don't pay .... and then sell (so collect again) the 'debt' to companies to collect (this is sold around 10% first time) .... who begin to try and use force to collect something which never had value. When that don't work they use the 'law' .... but the law is a lie ....

 

You created the 'value' .... they stole that from you and then charged you interest on top.

 

The whole system is a lie .... but the mass do not and have never cared as they have been and already are dead.

 

It is definitely all a lie... what I forgot to add to my post is that the company I arranged my IVA with actually encouraged me to 'falsify' (or at least exaggerate) some of my monthly outgoings, in order to reduce how much I was able to pay back (thus leaving me with a little bit of monthly 'surplus').

 

And yes, I have heard about how companies will sell off 'debts' to other companies, well that's definitely all a bit "weird" isn't it? 🤔

 

I would never actively encourage anyone to get themselves into the levels of debt that they could never afford to repay. But my advice is that more debt is not the way to get out of debt. Anyone struggling to meet monthly repayments should seriously look into such schemes as IVAs, but they are only ever a 'solution' if you are prepared to understand the limits of your spending and to live within your means.

 

If only there was some way to implement these IVAs on a global scale, we could write off so much world debt and some poorer countries could have a clean slate to start again.

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