For many, the US dollar is the state’s fiat currency. It all kicks off with the US Treasury who creates bonds which are government IOU’s that are paid back using a specific time period with desire.
The person who received your money from the bank as a loan product will use it to buy something such as a car. Then that individual will pay the car dealer along with the money he borrowed. Right now the car dealer will bank this money into an individual’s own account at the loan provider. Now there is $190. 00 on deposit and the bank can legally steal 90 percent again or $81. 00 and lend the idea out.
This is the Ultimate Government backed and sponsored pyramid scheme, where only the banking high level who own the Fed and other central banks around the globe, massively profit by stealing with generations of innocent locals.
The Treasury holds regular auctions to sell off a bonds to primary dealers, who are the major banks. Then the US Federal Park enters the game by investing in all the bonds from the banks through something called “open market operations”.
Which is then spend on wars, military, government salaries, social programs, open public work projects and other debts spending that keeps on re-occurring. Next all those federal employees and military workers take their salaries and deposit them into various bank accounts throughout the location. This is how the fiat funds now enters the commercial banking sector.
Within the store-bought banking sector we now have what I refer to as “magic money creation” which is definitely called “Fractional Reserve Lending”. Here is an example of how fractional reserve lending works. Say someone deposits $100. 00 into a bank account, the bank that received that deposit is now legally allowed to remove $90. 00 or ninety percent of your deposit and re-lend it to someone else.
Finally over time, there becomes an excess of bonds at the Fed and cash in the Treasury. The Treasury now takes that excess cash and build up it into the various divisions of government.
However, it’s important to note, that when the Fed writes and problems a check, there is no money what so ever inside the account to cover the amount of the fact that check. The account a lot of these checks are written from will always carry your zero balance. Therefore just about every dollar that exists, is actually borrowed and must be repaid.
Once again nothing backs a lot of these dollars except IOU’s. Furthermore, for the hard work just about every US citizen does to help you earn his or her salary, a part of it eventually ends up in the Treasury in the form of income taxes. This is what pays the principle and interest on the bond of the fact that Fed bought with a examine from nothing. US citizens are actually forced into paying fees for the use of our present-day money supply system.
The entire system of making money from nothing is a complete scam. It all starts with the Federal Reserve and the US Treasury exchanging IOU’s. A check is an IOU meant for cash and a connection is an IOU to be refunded with interest at a few later date. Cash comes into existence once the Fed difficulties someone a check.
In so doing actually leaving your profile with only $10. 00 or ten percent of your finish deposit. However your lender statement will still demonstrate to the entire $100. 00 dollars or one hundred percent of your bank, on deposit in your balance.
Once again the banks go back to the US Treasury auctions the next month buying more bonds and trading them to the Federal Park. And every month this pattern of buying and selling may keep on getting repeated.
The next person consequently comes along, and borrows capital. Once the new borrower pays off the seller for what that they bought the money again is re-deposited into the bank and now there is $271 dollars on deposit. This creation from money through deposits and loans (fractional reserve lending) keeps re-occurring to when at some point your original $100. 00 deposit has grown to $1000. 00 (ten instances the amount of your original deposit) in fiat currency made out of the bank.
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