Crash Course: Chapter 8 – The Fed & Money Creation by Chris Martenson
Filed Under : Economics by Kris Reid
May.27,2010
Chapter 8 (The Fed Money Creation): Chapter 7 explained money creation via money loaned into existence by banks, on the local level. Chapter 8 explains money creation by the Federal Reserve, where we learn that it is manufactured out of thin air. Perpetual expansion is a requirement of modern banking. The banking system MUST continually expand, because that is how it was designed. By understanding the requirement for continual expansion we will be in a better position to make informed decisions about what is likely to transpire and take meaningful actions to enhance our prospects. www.chrismartenson.com
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The treasury issuing the money would lead to massive inflation to finance welfare and warfare. There is no real difference. The government owns the right to create currency, and guess what, they gave it to the fed. The Feds interest is payed back to the treasury as well.
Your solution then, is not really a solution at all.
@fiaskolo thank god you have a brain don’t you wish others would think like you i wish people understood things better
@3daughterskillme true that. greets from romania
@fiaskolo
The goal was to make the Fed independent of the Treasury, i.e. independent of political influence. The hope was that their independence could be based on counter-cyclical economics, not popular politics.
I am not defending the fed, just spreading info. I actually prefer commodity based currency and interest rates set by the market (Hayek).
The reserve act determines that the reserve determines the ammount of money in supply through advisory capacity to audit office and other government bodies.
To retain the fruits of your labor know that you are the ultimate creditor and use your signature to create non-negotiable debt instruments. You are the grantor/beneficiary to at least two trusts.You have a trust deposit at the DTC (Depository Trust Company) via the Federal Reserve and one with the Social Security via the UNITED STATES Inc.
As grantor you can change the trust rules/indenture. Mke a co-trustee perform his/her duty. Like process your debt instrument. US Treasurer co-trustee
US Treasury bonds are backed by the full faith and credit of UNITED STATES Inc. Your ALL CAPS NAME, for example, JOHN H DOE is an entity of the UNITED STATES corporation. A corporate fiction which you have been defrauded into voluntary servitude.
Because you have been defrauded it is, in reality, involuntary servitude.
“National insolvency? is caused by Congress spending too much, not taxing too little. ” YES! AGREED!
National insolvency is caused by Congress spending too much, not taxing too little.
FreeAccz[dot]info
just send me a free amazon voucher by the way
Although there is much great info in these
videos, I have a problem with one statement.
“Cutting taxes while cunducting 2 wars”
The truth is that as it always does, cutting taxes brings more money into the treasury. Record amounts were collected the last several years under W. Unfortunately, record amounts were spent also, just like under Reagan. Tax cuts DO NOT CAUSE DEFICITS! Never have, never will.
Not my opinion, a matter of record.
great stuff chris. keep it going! Peter Schiff for senate
@aaroncoleman3: Yes. But the government lies with statistics. See Chapter 16.
@25sounds: see Chapter 16. Fudging numbers.
im not thrilled at all…
Hello ChrisMartensondotcom
I have to admit I am very impressed with the quality of your videos here on youtube.
They are certainly a pleasure to watch as I do enjoy them.
I am sure there is many others who also feel the same about your videos.
Mark McCulloch
I think the one aspect that is always neglected is if such debt can be incurred then why aren’t we experiencing a huge inflation to match this debt creation.
more debt = more inflation?
Anyone with basic knowledge of the central banking system will realise just how much of a monolithic scam it is.
the peoples assets for pennies on the dollar. Whereas if the values hadn’t dropped, the people may have covered the loan with 1 asset. But as such, it may require 2 or 3 of their assets. Finally, the Money Mongrels cause a robust economy again and the assets which they obtained appreciate back to their normal, higher value. Thus, for every dollar they loaned, they took back multiples of a dollar on top of whatever interest had been payed prior to default. That’s why we pay interest first
Defaulting loans are how the Money Mongrels obtain things of real value. They know that the notes they print are equivalent to Monopoly game board money. First, they create times of plenty, a robust economy. The people obtain loans because they’re earning. They then turn the loans into assets, things of real value. Then the Money Mongrels create times of hardship. The people can’t pay loans so they’re all selling. With nobody buying, the assets’ values drop. Through default, the Mongrels collect
Longer ago yet, in India you had a system in which the country was divided into various principalities and the rulers of each one was a very large, fat man. Something like a Sumo wrestler. Because periodically their subjects had to pay the equivalent of his weight in precious metals and gems. The ruler even sat upon one of the two trays of a large scale while the people placed the treasures upon the other tray until the scale became balanced
Interesting world we live in!
I am on the lower end of society. Well when credit cards were beign issued in india. I got mine 2 years ago. I spent money and I paid 24-30per year. Interest on that amount. that isnt loaning money. Well we had something called zamindari long ago a system that is abolished now. there for 100 Rs loaned out you had to pay 125% in the first year. how is that different from zamindari system. We looked down on the zamindars, as these people robbed the average people. so did the credit cards for me.
I see! Money expands in quantity, and inflation decreases its value. BUT defaulting loans also destroys specific money, and reduces the need for inflation to reduce the value of all money.
It’s called inflation. When the numerical quantity of the money exceeds the material value of society it loses representational value. T