How is money created? If you ask average people on the street this
question, most of them have absolutely no idea. This is rather odd,
because we all use money constantly. You would think that it would only
be natural for all of us to know where it comes from. So where does
money come from? A lot of people assume that the federal government
creates our money, but that is not the case. If the federal government
could just print and spend more money whenever it wanted to, our
national debt would be zero. But instead, our national debt is now nearly 16 trillion dollars.
So why does our government (or any sovereign government for that
matter) have to borrow money from anybody? That is a very good
question. The truth is that in theory the U.S. government does not have
to borrow a single penny from anyone. But under the Federal Reserve
system, the U.S. government has purposely allowed itself to be
subjugated to a financial system in which it will be constantly
borrowing larger and larger amounts of money. In fact, this is how it
works in the vast majority of the countries on the planet at this
point. As you will see, this kind of system is not sustainable and the
structural problems caused by such a system are at the very heart of our
debt problems today.
So where does money come from? In the United States, it comes from the Federal Reserve.
When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.
Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.
The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.
So why does the U.S. government go to all this trouble? Why doesn't the U.S. government create the money itself?
Those are very good questions.
Read more: http://beforeitsnews.com/story/2312/045/Where_Does_Money_Come_From_The_Giant_Federal_Reserve_Scam_That_Most_Americans_Do_Not_Understand.html
So where does money come from? In the United States, it comes from the Federal Reserve.
When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.
Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.
The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.
So why does the U.S. government go to all this trouble? Why doesn't the U.S. government create the money itself?
Those are very good questions.
Read more: http://beforeitsnews.com/story/2312/045/Where_Does_Money_Come_From_The_Giant_Federal_Reserve_Scam_That_Most_Americans_Do_Not_Understand.html
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