How are new dollars created?

[Anonymous No.56141030]

[Anonymous No.56141032]

>>56141030
jews lone you out of thin air and you are working your ass off to pay it back with (((interests)))

[Anonymous No.56141034]

>>56141030
don't google fractional reserve banking

[Anonymous No.56141040]

>>56141032
Why do I owe interest on a dollar bill?

[Anonymous No.56141050]

>>56141040
because in the meantime while you are paying it back they are infalting it away by more "printing"

[Anonymous No.56141052]

>>56141034
Will actually look this up, but do you care to elaborate on how it works?

[Anonymous No.56141058]

>>56141050
So inflation is interest?

[Anonymous No.56141065]

>>56141034
Oh lol, I didn’t know this.

[Anonymous No.56141397]

>>56141058
Inflation is all credit by banks but the interest remains in the economy after the loan is paid of. The interest is paid off with money some other sucker somewhere in the economy took out as a loan (from a bank). Repeat until the system collapses.

[Anonymous No.56141403]

>>56141030
New dollars are created when you spend a credit card or take a loan, or most recently when we have no money to pay for executive obligations- like the war in Ukraine. We print the money, pay ukraine a hundred bilion, pay our defense contractors a hundred billion, these guys all getting new dollars which devalues the rest of cash holders - causing inflation. It used to be very, very different, and the current path is completely unsustainable and will lead to fall of the US dollar hegemony.
make sense?

[Anonymous No.56141425]

>>56141397
>Inflation is all credit by banks
I know this part. Banks lend money on deposits, the deposit amounts remain the same as the loan goes out, so 10k deposits for 1k loan makes 11k dollars, which causes inflation
>interest remains in the economy once the loan is paid off
So the supply should go back to 10k when the loan is paid, but the person owes 1.5k or something like that, so there is 10k plus .5k for the bank in profit, or something like that.
>where did the .5k come from
I guess is my question. You say he borrowed it from another bank, but surely there must have been a “first dollar.” There had to be some money that came from nothing for all this money to be backed by other dollars. Where did the deposits come from?

[Anonymous No.56141443]

>>56141403
I don’t get the difference between a metals backed currency and our current system.

[Anonymous No.56141508]

>>56141052
Most money in circulation is created by banks. Banks lend new money into existence (not physical dollars, just numbers typed into bank computer systems) and are only required to hold a fraction of that amount created in "real" dollars. The fraction of actual money they need to hold is set by the feds, the reserve ratio. IIRC, right now the reserve ratio is around 3%; during Covid it was 0%, lol. The really funny part is that Bank A lends to Bill $1000, Bill deposits that $1000 into Bank B, now bank B has increased it's reserves $1000 and can now create another $33333 through lending, and the cycle continues. The cherry on top is that they charge interest on the money they create, so the entire amount must be paid back in full plus interest. So the banks have basically free reign to create money as they wish with near 0 risk; in the rare event they go under the government bails them out with your tax dollars. What a fun system!

[Anonymous No.56141549]

>>56141508
>created in "real" dollars
How do they get the real dollars from the fake dollars? Does the fed buy them from the treasury, what does the fed give the treasury in exchange for the dollars? If it’s buying debt what do they buy it with? What’s the difference between a ‘real’ and a ‘fake’ dollar? How do they get into circulation?
The fed doesn’t print real money right? That’s the treasury, so how does it ‘print’ money?

[Anonymous No.56141606]

>>56141443
Metals/stocks/commodities hold value. Dollars are simply notes. Metals heavy, paper not. To facilitate $1T in transactions countrywide, we use the promises in the form of paper. When times get tough, people want true value, not the promise of such and trade in the notes.

[Anonymous No.56141621]

>>56141040
You don't. You owe nothing to some fucking jew. That's the end of it.

[Anonymous No.56141656]

>>56141549
>How do they get the real dollars from the fake dollars?
By (you) signing a contract stating you will return them real dollars + interest

[Anonymous No.56141795]

>>56141606
Dollars have absolutely nothing backing them right? So why are they so valuable? The gov says they’re tender but in practice people could turn them down and ask for other forms of payment. Is it because we pay taxes in dollars? But is that enough? Couldn’t someone open their own gold-backed promissory note and lend at interest with that unless there was a bank run?
I guess what I’m asking is why doesn’t the American banking system have any competition? Where does all this power the fed and treasury have come from? How does a private institution have so much power over the federal government? Is it really a private institution? I have a lot of questions is I guess what I’m saying.

[Anonymous No.56141833]

>>56141656
But that doesn’t make sense. The fed buys treasuries, with what? With money it prints, but it buys ‘real’ money from the treasury. With what? Is it all computers? What was it before? Ledgers? Was the economy all balancing things on ledgers before?

[Anonymous No.56141907]

>>56141795
>Dollars have absolutely nothing backing them right? So why are they so valuable?
Because the American Government will shoot/arrest you if you don't use them. So tin effect the US Dollar is backed by the USA military.

>The gov says they’re tender but in practice people could turn them down and ask for other forms of payment.
And that's how people got shot. It's also why BRICS is putting pressure on the USA, because it's essentially saying "come and try it".

[Anonymous No.56141965]

>>56141030

[Anonymous No.56142003]

>>56141907
It’s funny because that military/police force is built up by the currency it protects.

[Anonymous No.56142047]

>>56141030
The US sells debt bonds, the successful sale of those bonds finances the creation of a corresponding amount of USD, and interest is paid out to the holders of those bonds for having held them as determined by interest rates and market conditions. When dumbfucks point to the national debt and get laughed at this is why, because the debt reflects the amount of currency in creation and is necessary to even have the currency and have any real liquidity in the currency. Where things get fucked is if yields invert and interest payments on the debt start getting out of control which hasn't happened yet but is definitely higher than anyone would like, hence the rising interest rates and market controls put in place to start unwinding inflation and get ahead of things.

What nobody points out is that the national debt is about 35 trillion but the amount of USD in circulation is about double that number. We've actually successfully paid off the creation of about half of all dollars in existence. It's part of why inflation is such a bastard, if we only had the money in existence that we were still paying interest on inflation wouldn't be an issue at all. One big deflationary event and USD is right back to 90's levels of strength.

[Anonymous No.56142053]

>>56141032
you make it sound so one sided. you think jews arent working their asses off?

[Anonymous No.56142154]

>>56142003
Which works. Well as long as the US can keep the world afraid of its military. Thing is there are parts of the world that are getting less afraid, and are starting to call out the USA's military. If the US is ever shown not be be able to force the Dollar via military might, the dollar will straight up implode because there's 0 reason to hold it.

[Anonymous No.56142199]

>>56142047
>The US sells debt bonds, the successful sale of those bonds finances the creation of a corresponding amount of USD
How?
>We've actually successfully paid off the creation of about half of all dollars in existence.
How? I thought we needed debt with interest for each dollar? Wouldn’t there always be more debt than dollars?
Thank you a lot for your response, it’s been very helpful.

[Anonymous No.56142496]

>>56141030
They print it out of the blue moon. This is what Bitcoin and blockchain as a whole is coming to curb. Have already started banking my wealth on-chain via SpoolFi until the SEC approves the ETF.

[Anonymous No.56143071]

>>56141030
they do it with tears from a baby faucet to make them smell nice
or at least that's what the funny little voice on my SORA card told me

[Anonymous No.56143183]

>>56142199
>how
The federal reserve cannot create money out of thin air, something has to back the creation of that money. Selling bonds backs the creation of that money, so basically every USD exists because someone paid for it to exist. There's more money in existence than we carry the debt for because that's how we've created currency for a long time and once the bonds that created a dollar mature they expire and we no longer owe interest on them. That's why there's different terms for bond lengths until expiry. We don't have to carry more debt than currency but we do have to carry more debt than currency that is still being financed.

The only way USD falls down is if interest payments outpace what we can afford to pay by a pretty serious degree. We got close to that but it's been prevented thus far and looks like it won't be an issue other than killing growth for a few years. That the US has their military to back up the value of their currency is just a bonus and the relative strength of the USD compared to anything else is why the US doesn't really give a shit if oil is traded in something other than dollars now, or at least not enough of a shit to fight about it. Nearly two thirds of all global trade is done in USD and we service that 63t in trade with ~37t of debt meaning nearly as much money is "paid for" as what we're paying off currently. One good deflationary event to get it back down to closer to what we're still paying off and the dollar hardstomp MOGS anything else even without the military behind it.

And that's why we were nice to the Jews

[Anonymous No.56143337]

>>56141425
It's worse than that since the reserve requirements went to 0 a few years ago. Anyway, supply goes back to $10k+interest paid on the loan. The money for the interest comes from another loan, usually taken by someone else. The new money from that other guy flows through the economy until you receive it to pay back the interest. In aggregate this is like paying credit card debt with another card and then another card, but the actors taking on debt are generally separate people who don't know each other. The first dollar was a silver coin (it's defined as 25g of silver in the constitution). Then it was a certificate for silver. Then for gold. Then it became just paper and now often just bits. But nowadays the deposits are literally debt. Those dollars exist because someone, somewhere took a loan and owes those dollars. Either the US gov through selling bonds to the fed (not just to the fed, but when the fed buys them it's money printing) or credit in the private sector. The key takeaway here is that all dollars are debt. Any $100 bill in your pockets exists only because someone took on $100 worth of debt. In a way this also gives those dollars value because it means other people are going to work for them to service their debts. But even then, it's just a promise to do that work, not a guarantee.

[Anonymous No.56143474]

>>56141795
Goldbacks exist. ASEs exist. Gold and silver coins are produced all over the world. So yes, what you propose is possible. In fact it's kind of what happens on the commodities markets through lending PMs for short sellers to cover their positions. But it's not a retail thing because the gold and silver economies are small. Few take gold or silver as payment, so what's the point of loaning them? Only when the dollar and other fiats collapse it'll be a thing again.

[Anonymous No.56143546]

>>56143474
They're just looking for an excuse to shit talk the tribe, whole thread belongs on /pol/ besides the threadbarest justification for it not being janjan'ed already.

[Anonymous No.56143550]

>>56141833
When the fed creates dollars they don't really print them. They are numbers on a computer. These are "real" dollars, though. They don't have to exist in coin or paper form to be real dollars. The actual physical money supply is called M0. The digital money supply is M1. The "fake dollars" created by banks are called M2. Approximately. I think the treasury is printing the physical bills, but how exactly they enter circulation or how banks go trade their debt created dollars for paper notes, I'm not sure. Maybe they just exchange them.

[Anonymous No.56143604]

>>56142047
A sovereign country doesn't need to get into debt to print money. They can just do it, no strings attached. Other than inflating the money supply anyway. The last US president who did this was JFK.

[Anonymous No.56143644]

>>56142199
>treasury prints bonds
>fed buys bonds with freshly baked dollars (number on computer)
>treasury now has dollars
Yes, it's made up bullshit. It used to be different, but then Jews happened.
>more debt than dollars
Right. At no point are there enough dollars in existence to pay back all dollar denominated debt. If you took all the dollars that exist and tried to do it you'd run out of dollars and be left with debt that is impossible to pay off. Eternal debt. The cool thing is that no one is personally responsible to servicing it so most people don't care. They don't understand how it's fucking them.

[Anonymous No.56143675]

>>56143604
>bro you can just print money it doesn't have to be backed by anything and this is why the federal reserve shouldn't exist
I'm just amazed you're smart enough to string together a sentence with what is clearly profound mental retardation.

[Anonymous No.56144091]

>>56141040
Because that's where your life is dependent whether you like it or not. I'm already hedging inflation via SpoolFi while waiting for sleepy Joe to print more bills before leaving office...

[Anonymous No.56144186]

>>56141040
Because the FED isn't Federal, it's a private entity loaning the USA it's dollars, and they ask interest on that.
Or so I've been told
Fractional reserve is where the bank doesn't need to actually have the money it loans out, only a (fractional) reserve, since no-one would do a bank run, it's current year!
Oh, they ask for interest on that non-existing money you just lent, so the pile of none-existing cash grows ever larger, (but will need to be fabricated, developed, created somewhere, that's for the children to worry about)
Neat!

[Anonymous No.56144215]

Basically through bank lending and minting of physical currency.

"Understanding the Modern Monetary System" by Cullen O. Roche: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625

[Anonymous No.56144217]

>>56141443
Because, just like a car, you can't download a gold bar

It holds intrinsic value, trough the rare metals it is created with.

[Anonymous No.56144244]

>>56141907

[Anonymous No.56144283]

This thread is incredibly anti-semitic. You goyim need to know your place and stop asking questions. NOW.