CurrencyMate.com - Fractional Currency Knowledge Base

Fractional Currency Knowledge Base

How do I find the value of fractional currency from 1876?

Why did they stop making fractional currency? Why was it only made during the civil war and then why was it stop, why didnt they just continue with it instead of coins

How many people would like to see the privately owned federal reserve abolished and government currency used? American are oblivious to the fact the nations debt is owed to the Federal Reserve bank. A private corporation that controls the printing presses and lends the government every dollar they have in circulation at interest. If the Usa defaulted and refused to pay what would the fed do? Repossess your highways and social programs? Your government should run the currency and eliminate the "fractional reserve banking system" that has burdened your country with debt. Only then can you be a free country. Andrew Jackson was THE best president JFK #2.

Why is it, that Gordon brown allows private banks to issue our currency as a debt? Posted also in Government section with little response. I want to know what the average member on here thinks about this. Why, if Gordon Brown is running this country like everyone believes he does, allow privately owned fractional reserve banks to issue our currency as a debt when in theory he could remove them from the equation altogether and have our economy owned by the state like most of the general public believe it already is and therefor save the economy. US citizens feel free to answer as i believe your economic system falls in between the same guidelines. Thanks.

Gold Standard vs fiat currency? Many people claim the gold standard is better than the current fiat currency and fractional reserve banking system used in most developed countries, since it would limit the government's ability to print money. However the gold standard failed to meet the demands of the expanding world's economy in the early 20th century. How do the supporters of the return to Gold Standard offer to solve the main problem in the need for the economy to expand while the whole amount of gold and it's price are set to a relatively fixed amount?

How much is a 50 cent bill from 1801 worth? United states fractional currency from 1801..

Fractional-reserve banking depends on the assumption that? a. not all depositors will withdraw their deposits at the same time. b. most banks will have assets that outweigh liabilities. c. banks generally make more sound investments than poor investments. d. at least a portion of our currency, though not all, is backed by gold. e. the FDIC insures all banks loans up to $100,000

To those that understands the fractional reserve system, don't you agree that "IN GOD WE TRUST" is appropriate? Do you agree "IN GOD WE TRUST" should remain on U.S. currency considering how the money comes into existence. As an atheist, I am starting to think it is appropriate, and that understanding how money is created is the only way to understand the existence of god. An explanation of the fractional reserve process: http://video.google.com/videoplay?docid=7065205277695921912&hl=en

How many countries do NOT have a central bank? How many countries do not have a central bank that issues currency through a fiat system, or that utilises fractional reserves? And, which countries are they? (what are their names?)

Why do Joe Six Pack Republicans support a central bank? Why do everyday Republicans support a fractional reserve banking system. Do they know that if all citizens and their government was to pay off all debt we would not have any currency in circulation. Or do you think the topic is above their heads and will just sit and wait for someone to tell then what to say about a fractional reserve banking system.

If Republicans are so fiscally responsible, why do they support a fractional reserve debt based system? The last time I looked cash says "federal reserve note" not backed by gold at the top. And because we have a fractional reserve debt based system there will always be some pockets of society left out which is why we need social programs in the first place. Remember if the government and all the people were to pay off all debt we would have no money in circulation. So the next time you look at money in your hand that is someones debt. I think the founding fathers would be upset at a King James type central banking system like we have today. The colonies had a debt free currency but the British made them use debt based money and gave a huge tax brake to the East Indies company where Americans could not compete with cheap tea.

Name the currency of a nation? that does NOT have a fractional monetary unit (i.e. unlike 100 cents for a dollar, 100 pence for a pound etc.)

Did the founding fathers approve of a central banking system? The early European Americans had their own debt free currency before the revolutionary war but the British stopped taking the money and wanted the Americans to fallow a fractional reserve debt based banking system.

Do you think most Americans don`t understand our monetary system? I hear allot of complaining about spending but do most Americans know that if every American and their government paid off all their debt there would be no currency in circulation. If money was backed by gold I would be worried about Obama`s spending but our money today is backed by debt and loan demand so if companies go global with loans the loan pool or loan demand grows allowing spending at home. Or in short it is time for the government to spend in our fractional reserve system, next it will be companies time to spend then people again.

To anyone that understands the fractional reserve system of U.S. economics, don't you believe that...? "In god we trust" should remain on the currency? I'm guessing some of you have no clue how the fractional reserve works. Inflation is the imaginary money that the federal reserve makes. Just like religions get more and more powerful and their merits get less and less valuable.

determining the reserve requirements (in fractional reserve banking)? Below is the T-account for First City Bank, the only bank in a small city-state. In addition to the demand deposits of $500,000, citizens hold $200,000 in coins and currency. Assume that demand deposits and currency are the only forms of money. Use this information to answer the following questions. Assets Reserves $100,000 Loans $400,000 Liabilities Deposits $500,000 Assume that the bank has adequate reserves to satisfy a reserve requirement imposed by the government, but it does not hold excess reserves. What is the reserve requirement as a percentage? --------------------- Is the answer 20% ?? I was also wondering, is the reserve ratio the same thing as the reserve requirement? Thanks!

Would ending fractional reserve banking and the fed help the enviroment? Since up to 90cents out of every dollar loaned technically doesn't exist(in hard asset or currency form)and the fed continues with a 0% interest rate to promote growth and lending.Would it be fair to assume if we had a more stable lending system(ie say 80% of loaned money had to acctually be from/in the bank) and interest rates being higher as a result.Wouldn't this promote more saving and less spending witch would equall less consuming,Higher interest rates(less access to large amounts of money) would make it harder to secure a larger home loan(you could but it would be more within the persons financial means).And with less non existent or electronically created debt,some one who might currently be eligibale a 4,000sqf house would end up with a 1500 sqf house.Someone who might be able to afford car payments on a new excursion might instead pay cash for a camry.Would this work since most of our growth is just riding the wave of an inflationary bubble similar to the 20's where only a fraction of the required money was needed to create the growth and investment.Sure some manufacturing jobs would have to come back to make the econemy more stable,but we wouldn't have as much of a consumer based econemy.Not that people would be in worse living conditions.A lot of people don't own their own cars or houses anyways,they just think they do but in reality the bank does and they just make payments and get to use it(fuelled by easy and cheap acces to money).So I don't see it as a step down having something not as nice or big but owning it outright instead of being owned by a bank.You may not live in a house thats 4000sqft but you may never have to worry about foreclosure(or for not as long). for the banking aspect replace the word money with debt

Why do we have to have a Central Banking System/Federal Reserve? Lincoln printed our own 'greenbacks' during his term and it worked fine,until Booth blew his brains out and they replaced most of the money with Central bank notes. The constitution has provisions for the Dept. of Treasury to print its own money without there having to be backed by bonds and interest. I smell rich fat @ssed money hoarding Rothschilds all over this Fed. Reserve currency. Fractional reserve banking and the Federal Reserve is mostly responsible for the bulk of the National debt. Kennedy tried to introduce bill 11110 into congress in 63 and look what happened to him. I just feel that it sucks how world banks rape common people out of their money through fractional reserve banking practices. They also can also manipulate a recession or depression by retracting the money supply. a

Will Our (US) Economy recover ? Dr. Edwin Vieira, Jr., Ph.D., J.D. March 17, 2005 NewsWithViews.com Contrary to a widespread belief, socialism in the Soviet Union and Eastern Europe did not collapse because of the clever geostrategic maneuvers of the Reagan Administration. Neither did the East Bloc break up because its leaders were incompetents who put into practice the wrong plans. Particular politicians and policies--East or West--had next to nothing to do with it. The East Bloc fell apart--and had to fall apart, no matter what anyone did--because of an obscure principle of economics known as "the impossibility of rational economic calculation under bureaucratic central planning". Socialism failed--and must always fail--because, without prices for goods and services generated by a free market, central planners cannot allocate resources and manpower intelligently. But central planners cannot allow a free market to set prices (otherwise there could be no central planning). In the long run, this self-imposed bureaucratic blindness to the real values of people and things results in monumental waste, the failure of central plans to deliver sound capital investments and advancing standards of living, and finally the collapse of those societies that allow politicians and bureaucrats, rather than free entrepreneurs and workers, to direct the course of economic affairs. Although this principle had been recognized by other economists for almost a century theretofore, it received systematic exposition in Ludwig von Mises's seminal treatise, Socialism, first published in the 1920s. So, during the heyday of central planning from the 1920s to the 1980s, no one should have been unaware of the problem. Nonetheless, the political elite and the intelligentsiia ignored it, just about everywhere. In the Soviet Union and Eastern Europe, where Stalin and his successors imposed industrial-strength central planning through police-state terrorism and slave labor in the Gulag, the price was higher than in (say) the United States, to which Franklin D. Roosevelt was able to administer only a diluted dose of the same poison. But a price there was, paid as usual by common people. Economic theory also teaches that any scheme of fiat currency and fractional-reserve central banking is just as inherently flawed, incapable of permanent existence, and inevitably doomed to disaster as all-around, full-blown socialism, because fractional-reserve central banking systematically subverts the free market's structure of prices through expansion of currency and credit--which results in redistribution of wealth, misallocation of scarce capital, and collapse in either depression or hyperinflation followed by depression. This is no new insight. The problems fractional-reserve banking causes were widely discussed in the 1800s; and the whole subject of political versus free-market money was exhaustively examined by Ludwig von Mises, in his treatise The Theory of Money and Credit, first published in the 1920s. (Probably the best book on this subject now available for the average reader is Murray Rothbard's The Mystery of Banking.) But, throughout the Western world during the 1900s and even unto the present moment, the political elite, high finance and big business, and their hired intelligentsiia have generally ignored these problems--doubtlessly because irredeemable currency and fractional-reserve central banking have served their short-term interests, and the costs of the system have always been paid by picking the pockets of the common man. For this country's system of fractional-reserve central banking, though, Americans cannot blame some foreign dictator such as Stalin, but instead need to indict their own home-grown usurpers and tyrants: primarily, Presidents Woodrow Wilson (who signed the Federal Reserve Act in 1913), Franklin Roosevelt (who outlawed private possession of gold for use as currency in 1933-1934), and Lyndon Johnson (who repudiated the government's promise to redeem its paper currency in silver coin in 1967-1968). Some people also assign a large share of responsibility to Richard Nixon, who terminated redemption of Federal Reserve Notes in gold for foreign banks in 1971. This, however, is unfair. By "closing the gold window", Nixon extricated this country from an especially expensive variety of parasitism by the Federal Reserve System: its ability to prop up the value of Federal Reserve Notes by looting America's gold reserves. Indeed, such was Nixon’s legal duty. Because the Federal Reserve System as a whole is unconstitutional, paying out this nation's gold in redemption of Federal Reserve Notes is unconstitutional, too. (Nixon, of course, was far from being a constitutionalist. But, as folk wisdom teaches, "God writes straight with crooked lines".) In the case of the Federal Reserve, economic history all too strongly confirms economic theory. In 1913, the Federal Reserve's touts predicted that it would allow bankers and politicians to "manage" currency "scientifically", and thereby to end business cycles, eliminate inflation, and forefend depressions. Yet, the country soon suffered a sharp, albeit short depression in 1920-1921, followed by the horrendous collapses of the stock market and the banks in 1929-1933, and the Great Depression that festered for the remainder of the 1930s. And since World War II, Federal Reserve Notes have lost more than 90% of their purchasing power--which is a serious consequence of inflation by any reasonable standard

Do You Understand What This Global Financial Crisis Is Really About? These huge banks know exactly what they are doing. It's the same thing they did in the 1930's. Look at how lucrative it is. Morgan just bought Bear Stearns for pennies on the dollar. Everyone is screaming for the government to bail these scumbags out with YOUR money. It's how it's done. At the end of the tunnel, the banks own everything, and the commoners are left destitute. It's how they maintain their grip. When the people start to get a little too rich, when the wealth starts to get a little too evenly distributed, you get this. This isn't an accident. This isn't a crisis, unless youre an everyday, hardworking pleb. Everybody should read about what the Federal reserve really is. Read about "fiat currency" and "fractional lending". Read about how these situations are purposely created, and how the giant banks then buy up everything at pennies on the dollar. It's the greatest scam of all time, and its happening again. David....did I even mention George Bush? Is George Bush a bank? This has nothing to do with Bush. Jeez.

help! Macroeconomics!!? Jackie has the following list of assets: $45 in currency in her purse A $100 bill in her jewelry box at home $2,200 in a local savings account $500 in a chequing account (Jackie never carries her chequebook, however, because she has a debit card that is connected to the chequing account) 40 shares of Rogers stock, which currently sells for $20 per share $2,000 in a Canadian government bond that matures in five years 1. What is the dollar value of Jackie's assets that are considered part of M1? 2. What is the dollar value of Jackie's assets that are considered part of M2? 3. What is the current dollar value of Jackie's assets that can be considered a store of value? also Which of the following is a list of assets from most liquid to least liquid? A. Currency, real estate, savings account, stocks B. Savings account, currency, real estate, stocks C. Savings account, stocks, currency, real estate D. Currency, savings account, stocks, real estate and... Which of the statements about fractional reserve banking is NOT correct? A. Fractional reserve banking relies on not everyone withdrawing their money at the same time. B. Fractional reserve banking is used in Canada. C. Fractional reserve banking requires banks not to hold excess reserves. D. Fractional reserve banking allows banks to create money through the loaning process.

Have you seen this by Ron Paul, "Are US Taxpayers bailing out Greece?"? What do you think? " Last week we were reminded that ours is not the only country suffering from severe economic turmoil. The Greek government is the latest to come close to default on their massive public debt. Greece has insufficient funds in their treasury to make even the minimum payments that are now coming due. Their debt level is about 120 percent of their gross domestic product and their public sector absorbs what amounts to 40 percent of GDP. Any talk of cutting costs and spending is met with violent protests from the many Greeks heavily dependent on government payments. Mounting fears of default have sent shockwaves through their creditors and all of the eurozone countries. But there have been statements made by the European Central Bank to calm fears and give assurances that Greece will get the aid it needs. Details of agreements are not forthcoming. Is it possible that our Federal Reserve has had some hand in bailing out Greece? The fact is, we don’t know, and current laws exempt agreements between the Fed and foreign central banks from disclosure or audit. Greece is only the latest in a series of countries that have faced this type of crisis in recent memory. Not too long ago the same types of fears were mounting about Dubai, and before that, Iceland. Several other countries (Spain, Portugal, Ireland, Latvia) are approaching crisis levels with public debt as well. Many have strong ties to Goldman Sachs and the case could easily be made that default could have serious implications for big US banking cartels. Considering the ties between the Fed and these big banks, it is not outlandish to wonder if the US taxpayer is secretly bailing out the entire world, country by country, even as our real unemployment tops 20 percent. Unless laws are changed to allow a complete and meaningful audit of the Federal Reserve, including its agreements with foreign central banks, we might never know if this is occurring or not. This global financial crisis is a predictable result of secretive central banking and unsound fiat currency. Governments are entirely committed to this system of fiat money and fractional reserve banking for obvious reasons: it enables them to do what they love most, namely, spend hoards of money with near impunity. Without the limitations of sound money, governments will spend without limit. They will spend money to hire their cronies, pay off special interests, give out favors, create dependence and generally distract from the terrible job they do at their chief mandate, which is to protect the liberties of the people. Fiat money is a blank check to government, which is very dangerous, and we are witnessing the death throes of the system as the bills come due and the underlying capital is squandered away. Because of our globe-straddling empire and lingering reserve currency status, perhaps no one has a more vested interest in keeping this system cobbled together than our own government and the Federal Reserve. The agreements that Iceland and Dubai and Greece have negotiated can amount to little more than kicking the can down the road, as their overall spending habits remain largely intact, fiat currencies are still legal tender and more debt is issued on top of unsustainable debt. The American people have the right to know if they are going to be the ones holding the bag in the end because the Federal Reserve secretly put them on the hook for it. This knowledge would be a key factor in peacefully dismantling this immoral and unconstitutional system. " Despite games to try to replace Ron Paul's audit of the Fed Bill with a weaker provision, he got it into the banking reg package that passed the House. (He voted against the ultimate bill, however, which had many other putrid provisions such as institutionalizing FUTURE bailouts.) However, Dodd and Gregg have insisted the audit provision will NOT pass the Senate. Do you think we need an audit of the Federal Reserve? Sophie did you follow where the AIG bailout money went? Including to foreign banks? Without an audit of the FEd, a REAL one, we won't know.

Money supply and money multiplier question.? There are two questions 1. in a fractional reserve banking system, if the reserve deposit is 30% and the currency deposit ratio is 40%, then the money multiplier equals, 0.4+1/0.4+.30=2 but the answer is 1.5?? the formula is M=cr+1/cr+rr so i pluged in the numbers... 2. if the monetary base is 60 billion and the money multiplier is 3, then the money supply equals M=3x60bill=180Bill, but the answer is $63 billion Can you please help me understand where i went wrong? Thanks,

Do you think the Federal Reserve leads to bankrupt nations..is the US going on its way to bankruptcy? Do you believe we are in deep financial trouble that we won't be able to get out of? Do you agree with these writings & statements? The Federal Reserve - Fractional Banking System - always leads to bankrupt nations All countries in world have a Federal Reserve, like U.S, All these Federal Reserve are controlled by same 13 families.- Google: Fritz Springmeier 13 Illuminati Bloodlines Links to Fed. Res. articles below. -------------------------------------------------------------------------------- Federal-Reserve-Money-Creation < - Video - quick overview of how Fed. Res. collapses nations. Federal Reserve is private banks control over Americans. International bankers, with money & control, work together to increase their wealth & power, stripping citizens, governments of capital, property, rights, liberties. In history, it seems our governments have increased human rights, but, in fact, this cabal of intl. bankers has increased their financial strangle hold on citizens, business, governments worldwide. In 1913, the Intl. Banker prompted & passed the Banking Act. The US Constitution requires that our government print money, interest free, and set interest rates. But instead, the Banking Act lets the Federal Reserve, a group of private, foreign banks, issue Fed. Res. debt notes (currency) and set interest rates. Emergences (pretended) of war, famine, etc. make our U.S. government borrow more and more, increasing our U.S. debt (with interest) to them. Fed. Res. is unconstitutional. The 16th amendment to US Constitution makes American citizens subject to pay back these loans through their personal income tax. The more U.S. government borrows money (wars & emergencies), debt & interest increases, our money is depreciated, inflation rages. Huge debts for our children ! Fed. Res. raises and lowers banks interest rates to increase their Fed. Res. profits. Fed. Res. continue to concentrate their power and control. In all areas, banking, food, health, ... there is rapid change where those in power are increasing their power. The stated advantage is the Fed. Reserve is working to protect citizens, business, but they're really just increasing the power, wealth, control of the controlling elites, the bankers, over the rights of citizens worldwide - increasing power of the few over many. In America, we once had 1,000s of newspaper owners. Now just 9 corporations control our mainstream; news,TV, books, movies. In all things; banking, food, health, the world moves towards greater concentration of power & control, the few over the man, with less & less individual freedom ! Fractional Banking How it works to advantage of bankers, theft of individuals Thanks for help.

If you know that some pockets of society will always be left out, how can you not support welfare? We have a central banking fractional reserve debt based system in the US similar to the system we kicked out with the British. If all citizens including their government was to pay off all debt we would have no currency in circulation. So knowing that there is always pockets of society left out in this system because it is impossible for capitalism in a fractional reserve system to provide enough jobs even if every human was able and willing. Now policing welfare is another rant but I am just taking about the system we have and what it produces. I think once people understand the religion of monetarism in our country we will want to change it. I also think people would understand why Reagan spent his butt off and Obama is spending his butt off if they know how the system works. We could just let the bubble which our system creates pop fast or spend ridiculously to let the bubble down easy.

Why do many Americans blame Bush for the current economic situation? While nearly all Presidents take unconstitutional powers, there is little a President can really do to affect the economy. The mass media uses the whole left versus right collectivism to assign blame, but really its far beyond the Politicians. The reason we are in the current economic predicament, because the quasi-public entity known as the Federal Reserve has had policies in years, which has caused inflation, currency debasing, easy credit. In 1971, President Nixon illegally took America off of the Gold-Standard, which is in the constitution explicitly delegating the currency be in the form of gold and silver. Our founding fathers knew of the dangers of inflation after the issuing of fiat money to pay military soldiers in the American Revolution. After taking us off of the gold-standard, banks had the freedom to use fractional reserve banking, government could print money out of nothing.As long has the world had confidence in our dollar, we would be fine, the politicians assured us. Well finally the root problem is collapsing. We need to go back to sound money, which is money backed by a commodity. It may not have to be gold, but it has to be something. So for the financial crisis, this is who I blame. 1. Woodrow Wilson 2. Richard Nixon 3. Alan Greenspan 4. Ben Bernanke

Why do we let banks get away with this? http://www.thoughtleader.co.za/anjamerret/2008/03/22/lies-more-lies-and-then-there-are-financial-firms/ It’s called the fractional reserve system. As an example, a bank may hold $100 in customer deposits but can lend out $1 000 to borrowers. In this way a bank actually “creates” money. Furthermore, in past times, the reserve or federal bank of a country would have actual gold in its vaults to support the value of the currency used in the country. A couple of decades ago, this was abolished and most reserve banks of countries now have a stash of dollars to underpin the value of their currency. One can see how this could be a problem as the American dollar is seen to be rather shaky at the moment. In other words, not only is your money at a bank not safe because the banks lend out much more than they get in, but your country’s monetary system also has not much of value supporting it either. Most people don’t realise this. It’s not exactly a subject taught at school. who is anja merret ? who is anja merret ? A blogger friend posted a lovely short article recently with the title “6 Reasons Why We Lie”. All of his reasons were absolutely spot-on. However, his final summary was the best. He maintained that the fundamental reason why people lie is because it mostly works. I want to add to this: it mostly works when nobody gets caught. It made me reflect on the drama playing itself out at present on the world’s stock exchanges, and specifically in the financial sector of the big bourses. It’s really all about lies and more lies, and it has worked mostly in the past because nobody was caught out.

What has been your political journey or have you remained static in your thoughts? I started out one of the partisans .... this party makes more sense on these issues --- slowly I noticed that "this party" only talked to me about issues I was likely to agree with them on --- "That party" made some sense on other issues --- but I didn't have much confidence in their ability to form a government and many people ended up realising it was all talk ----- because they would never form a government they could be as idealistic as they wanted to be with no fear of ever having to make the changes they threatened -------------------- It took a while --- but there is no party --- just a political class of people born out of no where pretending to represent the people while the rule over them --- The leader of the party does not take direction from the people -- quite the opposite -- they impose or sell their ideas to the public --- The guy with the best sales skills and the best connections with the deepest pockets wins The rest is a dog and pony show for your benefit Then I started to wonder about the economy -- the base of any economy is money --- we as a nation are in debt - Investigation of that lead me to many brick walls while asking what I thought were common sense and easy questions --- Who lent it to us -- how did we recieve it and why is it I and everyone else is paid in the currency of the land not in some other borrowed currency -- but our own --- There is no debt -- it is based on an equation of dollar production to GDP --- the government borrowed it from the central bank at interest and copied the model of Empire banking from the days of King George the 3rd to the letter Fractional reserve lending added in and I began to understand it was all an illusion counting on my sense of debt to a friend --- debt conjures ideas --- wrong ideas when applied to the nation state Slowly it became clear a handful of people own the nation and the party that is in or out are controlled as to what they can and can not do --- a certain amount of freedom is given to the government --- but mostly it is the freedom to administer the decisions of the powerful as they see fit The French revolution became of interest to me ---- because I went off in search of these powerful men -- and couldn't find them - The French revolution was the exact moment when the "Nobles" decided to hide. Pancake make up gone --- the rich disapeared leaving behind the political class who could take the hit for hard times and the credit for good ones They could be replaced or re hired as branch managers by the masses who would feel a certain amount of control over their destiny --- the illusion of choice took years of practice to get it where it is today After a while --- I came to the conclusion that political history revealed the presence of evil -- real - multi generational evil -- people who want to own kill control and enslave --- evil Now I am into the religious aspects of politics -- which leads me to the old government -- the church --- those forgotten days when fines were levied for not attending church - the theocracy of Europe has more or less been erased from the collective memory -- Now -- our current government is based on our old government Regional Kings had some powers the church had other powers and both groups existed side by side -- The judicial function was the church and the affairs of war and security were up to the King - ( varied by nation and time period) both controlled by wealth loyalty and the ability to control the beliefs and love of the masses ---------- Nothing has fundamentally changed -- hmm ------------------------------------------ I am no longer one of the partisans and that is a brief summary of my political journey --- How about you --- or have you remained static ?

Wake Up! Why are you blaming Bush or Obama, Read Below!? While nearly all Presidents take unconstitutional powers, there is little a President can really do to affect the economy. The mass media uses the whole left versus right collectivism to assign blame, but really its far beyond the Politicians. The reason we are in the current economic predicament, because the quasi-public entity known as the Federal Reserve has had policies in years, which has caused inflation, currency debasing, easy credit. In 1971, President Nixon illegally took America off of the Gold-Standard, which is in the constitution explicitly delegating the currency be in the form of gold and silver. Our founding fathers knew of the dangers of inflation after the issuing of fiat money to pay military soldiers in the American Revolution. After taking us off of the gold-standard, banks had the freedom to use fractional reserve banking, government could print money out of nothing.As long has the world had confidence in our dollar, we would be fine, the politicians assured us. Well finally the root problem is collapsing. We need to go back to sound money, which is money backed by a commodity. It may not have to be gold, but it has to be something. So for the financial crisis, this is who I blame. 1. Woodrow Wilson 2. Richard Nixon 3. Alan Greenspan 4. Ben Bernanke

How can borrowing hundreds of billions of $ from other nations be a permanent solution to the economic crisis? The U.S. is currently in huge debt with other nations. China is one of them. I just don't understand how we can keep borrowing and borrowing every single year and expect it to be a permanent fix. Don't we have to pay the piper (or fiddler, if you choose) at some point? Isn't this called living on borrowed time? The dollar is worth less and less every year because we have a system where debt is money. A system of fractional lending where a huge portion of money on the books doesn't really exist. We also print massive amounts of new bills (especially in times of recession) which creates a whole other problem. How can a currency not eventually collapse under all of this weight? I'm not really sure what it has to do with my question but I was not in favor of the Iraq War mainly because of the economic costs. It just added to the debt in a big way. It was a fiscally irresponsible decision.

What party should I belong to? I want to make it a hang able offense to plot plan or provide aid or facilitate any political union of Canada with any other nation such as the North American Union I want to make marijuana legal in order to deprive gangs mobsters and international criminla cartels billions funds derived from its sale I want to make prostitution legal and federally regulate it in order to chase the pimps gangs and sex slave trade away I want to introduce a corperate tax on all entities that employ off shore workers while lowering taxes on corperations that employ domestically I want to dismantle the banking system as it now exists and punish fractional reserve lending practices with a 10 yr jail term I want the government to again be responsible for the issuance of currency which would make loans from the bank to the government impossible again I want to place a national minimum wage along with a national maximum wage --I want to place limits on private ownership of the media --- 1 TV station per person or 2 newpapers --- those found in violation will have all property taken and autioned off to the highest bidder and jailed I want property tax decleared illegal and that any leverage of ownership against property of a person is punishable by fines or jail ---- Property tax can only be collected from a corperation and never a person If corporations are to continue without limits on their life span then I want the ability to charge the directors with crimes committed by the corporations. I wish to be able to legally consider the members of the board to be the corperation for the purposes of law ---------------------------- What party should I belong to ? I want environmental fines against business to be based on a % of their net profits -- (this would not cripple small mom and pop operations while being a punishment to large ones) Sag Apparently I should join the "Gandhi party" Economic Left/Right: -8.12 Social Libertarian/Authoritarian: -3.95

when will the american people stand up to private bankers? Most americans don't realize how the banking system works and that the 12 federal Reserve banks are actually owned by member banks the member banks are private corporations. this is fact and has been ruled in court.. the fed buys us bonds and through a banking process called fractional Reserve system it lends 90% of of the money to its private banks like bank of america and chase etc which do the same thing and lend it to the public all at interest. all the money that gets made ends up going to the bankers pocket not the united states as it should.. the power for private corporations to create the united states money is given through the federal reserve act in 1913.. and the united states treasury borrows money from the federal reserve at interest!.. why in the world do we allow this to happen? If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. ... The modern theory of the perpetuation of debt has drenched the earth with blood, and crushed its inhabitants under burdens ever accumulating. -Thomas Jefferson

The credit crunch, dollar crisis, and other callamities, what does it have to do with Australia? I was hoping that this mess was Americas problem, and now I've read about this money swap nonsense the central banks are doing, first and foremost I am against central banks and fractional reserve banking, but if we must have it, then it should be kept at a managable level, I know that the reserve bank of australia is our lender of last resort, so why are they debasing our currency by 20 billion dollars in order to swap it for US dollars? They said it was to increase US dollar liquidity... THIS IS AUSTRALIA, WHAT POSSIBLE USE COULD WE HAVE FOR US DOLLAR LIQUIDITY??? kapn, you didn't read the whole thing did you?

i need help with vocabulary words? i need the following definitions plz will reward all my points i really need this bad DELIVERED DEMAND- PRODUCTIVITY- EQUILIB RIUM WAGE- UNSKILLED LABOR- SEMI SKILLED LABOR- SKILLED LABOR- PROFESSIONAL LABOR- GLASS CEILING- LABOR UNION- FEATHER BEDDING- STRIKE- RIGHT TO WORK LAW- BLUE COLLAR WORKER- WHITE COLLAR WORKER- COLLECTIVE BARGANING- MEDIATION- ARBITRATION- MONEY- MEDIUM OF EXCHANGE- BARTER- UNIT OF ACOUNT- STORE OF VALUE- CURRENCY- COMMODITY MONEY- REPRESENTATIVE MONEY- FLAT MONEY- BANK- NATIONAL BANK- BANK RUN- GREENBACK- GOLD STANDARD- FEDERAL RESERVE SYSTEM- CENTRAL BANK- MEMBER BANK- FEDERAL RESERVE NOTE- GREAT DEPRESSION- FEDERAL DEPOSIT INSURANCE- CORPORATION- MONEY SUPPLY- LIQUIDIFY- DEMAND DEPOSIT- MONEY MARKET MUTUAL FUND- FRACTIONAL- RESERVE BANKING- DEFAULT- MORTGAGE- CREDIT CARD- INTEREST- PRINCIPAL- DEBIT CARD- CREDITOR-

Question for Ron Paul fans: How can we get rid of this current economic system that only benefits bankers? I'm a Ron Paul fan, too. I wish even more folks would listen to his sensible solutions. Right now our system is a mess. And it it surely because of our debt as money system. As we all know, fractional lending creates money out of thin air. The money doesn't really exist. If everyone made a run on the bank at the same time, the banks wouldn't even be able to pay out a small percentage of the money because that money does not exist. We are in HUGE debt and we continue to borrow even more money from foreign nations to temporarily fix our mess. But it is just that... a temporary fix. We aren't really solving or changing anything. We just get even further into debt. We have to pay the piper at some time. In other words, I guess you could say the nation is living on borrowed time (and money). If people were really educated on the subject, they may very well panic because they will realize that our dollar is not tied to any standard such as gold. The Federal Reserve keeps printing more and more money and the dollar loses value every year. A currency crisis is bound to happen. Right now the Federal Reserve works for the bankers and not the people. How can we wipe the slate clean and produce a system that works for the citizens of the United States?

Only one time did Christ ever resort to violence...? ...and that was to beat money changers and usurers in the temple. For a meek and mild person like Jesus, who preached turning the other cheek, loving and forgiving your neighbor, and not living by the sword, usury and money changing must have been a very serious offense. So why do Christians worry more about nudity and blasphemy on television, and don't work to get rid of much more grievous sins like lending money at interest, fractional reserve banking, and fiat currencies that operate on debt? I would think if one is a true Christian, stopping those who use money to exploit the poor would be first and foremost. Usury may be permitted by the Church, but I'm not talking about the Church. I'm talking about that which is supposed to be higher than the Church. If Jesus comes back with a sword, do you think he'll be after Janet Jackson, or Ben Bernanke?

If Jesus only had an economic degree would he have been more respectful of the money changers in the temple? I do not consider myself a Christian ---- but I think I know the bible at least a little bit Jesus got mad at the money changers who were operating their business out of the temple . In those days the temple was the center of everything --- Town gossip and buying stuff was common place Business went where the people were and they were at the temple --- and so business followed But Jesus got mad --- at the money changers who were lending money and converting currencies from one Kingdom to another They were well known crooks ---- who provided all your banking needs Now if Jesus only had the briefest of understanding of fractional reserve lending practices and trickle down economics --- Would he have kept a civil tongue in his head while addressing the towns bankers?

Do people really believe if the "new" Bailout passes the House, it will solve our economic troubles? ? Or will they realize that the source of the Economic collapse is not a LACK of liquidity, but WAY TOO MUCH in the form of hyperinflation? It now takes $21 to buy what $1 could buy back in 1913 when the Federal Reserve was established. http://www.infoplease.com/ipa/A0001519.html The Dollar has lost 1/3 of its value verses other currencies since 2002 alone! http://ftalphaville.ft.com/blog/2007/11/07/8713/the-dollars-slide-13-down-and-falling-faster/ Could inflation caused by the Federal Reserve and its fractional banking practices be the REAL reason for the collapse? The Media blames the Housing and Credit Markets, but wouldn't the root of the problem be the fact that our Dollar is quickly losing its value, causing people to not be able to pay off their debts?

Do people really believe the "new" Bailout will solve our economic troubles? ? Or will they realize that the source of the Economic collapse is not a LACK of liquidity, but WAY TOO MUCH in the form of hyperinflation? It now takes $21 to buy what $1 could buy back in 1913 when the Federal Reserve was established. http://www.infoplease.com/ipa/A0001519.html The Dollar has lost 1/3 of its value verses other currencies since 2002 alone! http://ftalphaville.ft.com/blog/2007/11/07/8713/the-dollars-slide-13-down-and-falling-faster/ Could inflation caused by the Federal Reserve and its fractional banking practices be the REAL reason for the collapse? The Media blames the Housing and Credit Markets, but wouldn't the root of the problem be the fact that our Dollar is quickly losing its value, causing people to not be able to pay off their debts?

Why is it, that Gordon brown allows private banks to issue our currency as a debt? Now I know the answer to this question, but I want to know what the average member on here thinks about this. Why, if Gordon Brown is running this country like everyone believes he does, allow privately owned fractional reserve banks to issue our currency as a debt when in theory he could remove them from the equation altogether and have our economy owned by the state like most of the general public believe it already is and therefor save the economy. US citizens feel free to answer as i believe your economic system falls in between the same guidelines. Thanks. That dosen't answer my question. Why does he allow our economy to be issued by private banks as a debt. It is created out of thin air, valuated on nothing, as a debt. if you do this then then the debt can never be paid off. You put £100 in the bank and the bank can loan 90% of that £100 as much as 10 times over. Thats creating £900 worth of debt from £100. That is down right illegal. So nobody on here can answer this question i take it? Or will continue to ignore this fact.

how are we going to weather the meltdown that is coming...? Is America going to financially collapse? Dr. Larry Bates, a former bank CEO, a former member of the Tennessee House of Representatives, where he was chairman of the powerful committee on banking and commerce how did we get in such a mess? This country has always done so well economically. Well the prosperity has been a facade, We have a debt-based monetary system. In 1913 we gave a private bank called the Federal Reserve, which by the way is neither federal and has doubtful reserves, it is a private bank that is owned by member banks... why do we call it federal? thats part of the ruse, you know in Germany one of the old banking families, Nathan Rothschild, said, "Give me control of a nations monetary system and I care not who writes their laws." If you get control of a nation's monetary system, you control everything that is going on. we have more debt than there is cash. We have roughly a forty trillion dollar domestic debt. But see that is not the worst part of it, we have the hedge funds, the derivatives, we estimate that the notional value, and I emphasize "notional value" is over four hundred trillion dollars. Three times,the total domestic debt of the entire world, and this is what is unraveling right now, it is leverage upon leverage upon leverage. How do we service debt? With money. Our personal walk around money is about 8 trillion so minus that from the 40 trillion gives us thirty-two trillion of the debt...the debtors have been asked to do the impossible, pay back money that does not exist Where does the buck stop, does it stop with the most powerful person in the United States, the President of the United States? Ultimately we will have a collapse, The most power person is not the President, but the Chairman of the Federal Reserve. There is either going to be a collapse or printing of money, which means big inflation. The President can do very little, the only thing any president can do to help the economy is reduce your taxes. Now the recent Nobel Prize winner in economics at the University of Arizona, or Arizona State University in Tempe, criticized President Bush because he said he didn't ask for enough tax cuts, and I agree with him. We have one candidate that is saying I am going to lower taxes for 95 percent of the American people, well forty to forty-five percent of the American people pay no taxes, so mathematically that is impossible to lower taxes. So is the candidate talking about additional welfare programs? In reality the only thing the president can do is reduce the size and scope of government and reduce your taxes. Who really runs the country? The Chairman of the Federal Reserve, is more powerful than any president of the United States,he determines what the average persons car payment is going to be, what their house payment is going to be, even whether they have a job or not. That is total control. we are in a crisis, we are in one big mess. People that have money in banks, it is guaranteed, FDIC insurance, to what, a hundred thousand dollars? two hundred fifty thousand for retirement plans. Well the FDIC can cover roughly one and a half cents on the dollar John Maynard Keynes, the architect of our current economic system, and anybody who studies economics at the high school, college, post graduate level will study Keynes in Economics. John Maynard Keynes wrote a book back in 1920 called, "The Economic Consequences of the Peace." He said by continuing process of inflation, governments can confiscate secretly and unobserved an important part of the wealth of its citizens. He said there is no more sure; no more subtle way to overturn the existing basis of society than to debouch or destroy the currency. Now listen to this, he said it engages all of the products of economic law that come down on the side of destruction and does it in a manner that not one person in a million can diagnose. So are there solutions to this crisis? Oh absolutely. How about our money in life insurance companies? If the people they have loaned your money to can't pay them can they pay you? As a banker I have literally created millions of dollars out of thin air with a stroke of my pen, it is what we call PFA banking; pluck from air. Then we charge interest on that which we create out of nothing under the fractional reserve banking system. gold and silver is money, anything else is credit. Gold and silver are the only monetary assets We are at the tipping point,I believe we have a minimum of two years, maximum of five years to get or house in order. there are three DVD's we are making available, Economic and Political Crisis, strategies for weathering any crisis while keeping your finances and political freedoms intact. We go through and show people how this is not an accident, it is a planned destruction of America, Fear has gripped the nation but: Internationally recogniz Larry Bates article on www.sidroth.org shares solutions

how are we going to weather the meltdown? Is America going to financially collapse? Dr. Larry Bates, a former bank CEO, a former member of the Tennessee House of Representatives, where he was chairman of the powerful committee on banking and commerce how did we get in such a mess? This country has always done so well economically. Well the prosperity has been a facade, We have a debt-based monetary system. In 1913 we gave a private bank called the Federal Reserve, which by the way is neither federal and has doubtful reserves, it is a private bank that is owned by member banks... why do we call it federal? thats part of the ruse, you know in Germany one of the old banking families, Nathan Rothschild, said, "Give me control of a nations monetary system and I care not who writes their laws." If you get control of a nation's monetary system, you control everything that is going on. we have more debt than there is cash. We have roughly a forty trillion dollar domestic debt. But see that is not the worst part of it, we have the hedge funds, the derivatives, we estimate that the notional value, and I emphasize "notional value" is over four hundred trillion dollars. Three times,the total domestic debt of the entire world, and this is what is unraveling right now, it is leverage upon leverage upon leverage. How do we service debt? With money. Our personal walk around money is about 8 trillion so minus that from the 40 trillion gives us thirty-two trillion of the debt...the debtors have been asked to do the impossible, pay back money that does not exist Where does the buck stop, does it stop with the most powerful person in the United States, the President of the United States? Ultimately we will have a collapse, The Federal Reserve quite frankly over the past five to ten years lost control of monetary policy. The most power is not the President, but the Chairman of the Federal Reserve. There is either going to be a collapse or it is going to be printing of money, which means big inflation. The President can do very little, the only thing any president can do to help the economy is reduce your taxes. Now the recent Nobel Prize winner in economics at the University of Arizona, or Arizona State University in Tempe, criticized President Bush because he said he didn't ask for enough tax cuts, and I agree with him. We have one candidate that is saying I am going to lower taxes for 95 percent of the American people, well forty to forty-five percent of the American people pay no taxes, so mathematically that is impossible to lower taxes. So is the candidate talking about additional welfare programs? In reality the only thing the president can do is reduce the size and scope of government and reduce your taxes. Who really runs the country. The Chairman of the Federal Reserve,is more powerful than any president of the United States,he determines what the average persons car payment is going to be, what their house payment is going to be, even whether they have a job or not. That is total control. we are in a crisis, we are in one big mess. People that have money in banks, it is guaranteed, FDIC insurance, to what, a hundred thousand dollars? two hundred fifty thousand for retirement plans. Well the FDIC can cover roughly one and a half cents on the dollar John Maynard Keynes, the architect of our current economic system,John Maynard Keynes wrote a book back in 1920 called, "The Economic Consequences of the Peace." He said by continuing process of inflation, governments can confiscate secretly and unobserved an important part of the wealth of its citizens. He said there is no more sure; no more subtle way to overturn the existing basis of society than to debouch or destroy the currency. Now listen to this, he said it engages all of the products of economic law that come down on the side of destruction and does it in a manner that not one person in a million can diagnose. So are there solutions to this crisis? Oh absolutely. How about our money in life insurance companies?if the people they have loaned your money to can't pay them can they pay you? As a banker I have literally created millions of dollars out of thin air with a stroke of my pen, it is what we call PFA banking; pluck from air. Then we charge interest on that which we create out of nothing under the fractional reserve banking system. I have paid for agricultural real estate, I have residential real estate paid for, I have gold and silver coins and I have cash in money markets and CD's, cash at the crash will be king, I practice what I preach. gold and silver is money, anything else is credit. Gold and silver are the only monetary assets We are at the tipping point,I believe we have a minimum of two years, maximum of five years to get or house in order. there are three DVD's we are making available, Economic and Political Crisis, strategies for weathering any crisis while keeping FOR MORE INFO AND THE FULL STORY THAT CAN NOT BE PRINTED ON YAHOO FOR SPACE SAKE...GO TO: www.sidroth.org

Hi I have an economy question. Please help? Which of the following features are consistent with a fractional reserve banking system? I. Banks have the ability to expand the money supply II. A portion of new deposits may be loaned out III. All depositors' funds are kept in the bank Commercial banks in the United States create money by: A. Replacing worn-out currency B. Converting checking accounts to saving accounts C. Printing new currency D. Selling bonds E. Issuing loans Suppose you were comparing your personal or household balance sheet with the balance sheet of your bank. Where on both balance sheets would your checking account be listed? A. The checking account is only an asset for the bank. B. The checking account is only a liability for the bank. C. The checking account is a liability for both you and the bank. D. The checking account is an asset for both you and the bank. E. The checking account is an asset for you, but a liability for the bank.

why would obama give the federal reserve more power? The following facts are verifiable in common economic dictionary and encyclopedia information, and hold unless refuted. I welcome any correction of inaccurate information and/or inclusion of useful information. Because the facts are so different from what most people believe, cognitive dissonance will push some people to reject the facts. Please reaffirm your commitment to embrace the facts. Here we go: The privately owned and run Federal Reserve is to be handed sweeping new powers under Obama administration proposals in a deal that will please bankers who lobbied for more Fed “oversight” of their activities." The new rules would see the Fed given the authority to “regulate” any company whose activity it believes could threaten the economy and the markets. “The final plan due to be released on Wednesday — which originally aimed to streamline and consolidate banking and securities regulation in one or two agencies — now is expected to sidestep most jurisdictional disputes and simply impose across the board standards to be applied by all financial regulators, according to administration and industry sources, ” reports the Washington Times. How simultaneously dangerous and ridiculous it is that the Federal Reserve is given more authority to oversee the economy. This is the same privately run entity that refused to comply with congressional demands for transparency and disclose the destination of trillions dollars in bailout funds. It is the same privately owned entity that has withheld internal memos, in spite of freedom of information act requests. It is the same private entity, run for the most part by European banking elites, that has arrogantly refused to tell Senators and Congressmen which banks were in receipt of government loans. The government is ready to hand over everything to a monolithic private corporation and a gaggle of bastard banker offspring, that have gobbled up an amount close to the entire GDP of the country in taxpayers’ money and figuratively stuck the middle finger up regarding questions over where that money has gone. about the fed: The Fed is privately-owned by the banking industry with their meetings closed to Congress and the public. The purpose of all business is to maximize their own profit with limited interest in the public good. The Fed is only audited by giving their accounting books to an independent firm to verify their math is correct in the books. Because the Fed is not strictly and transparently regulated by Congress, we have to trust the Fed that the numbers on their books are accurate. The only “oversight” from Congress is quarterly interviews for questions and answers with the Chair of the Federal Reserve. Presidents appoints the seven Board of Governors to help manage the Fed, but historically these selections always come from a short-list of candidates selected by Fed ownership "you define money as anything generally accepted for trade. However, in the real world something is money only when the government authorizes it as “legal tender.” Its purpose is to facilitate trade. Fiat money (not exchangeable for a commodity that “backs” the currency) is all that’s required for this purpose because the government enforces its acceptance as payment. Commodity money is the attachment of money to a thing, like gold or silver. This is not needed for legal enforcement and introduces fluctuation as the value of the attached commodity changes. If you’ve been aware of the wildly escalating price of gold, you’ll understand the risk of a wildly fluctuating value of commodity money. "Bank credit is the legal power government has given banks to create a form of money out of nothing and lend it to the public at interest. Bank credit increases the supply of money, causes inflation (by definition as the supply increases), and devalues the money already possessed by the public. Inflation is a hidden tax on your money because purchasing power decreases with inflation. The banking industry benefits from this policy of creating credit out of nothing and lending it to us at interest, while the public has the costs of paying banks to “borrow” money at interest while existing money is devalued. I use the term “borrow” because the loan wasn’t something possessed by the bank. The loan was created out of nothing when you asked for the loan. This is difficult for many to grasp." When banks lend money, the interest charge can double the amount of money the customer must repay. Through fractional reserve banking, only the amount leant is created (principle) but not the interest. Because our US money is only created as debt, and the interest is never created, we can now explain some extraordinary but predictable outcomes of this monetary system. Money is debt, created out of nothing by private banks, and then leant to us to repay at interest. The debt will always be greater than the money supply. It’s impossible to ever repay total debt; we are in debt forever in this m monetary system. To put this in numbers, the total debt of the US public is currently over $50 trillion. The total US money supply is somewhere around $13-15 trillion. We don’t know the exact amount anymore because the Federal Reserve stopped publishing that figure in 2006, claiming it was unimportant and “too expensive to tabulate and print.” This decision was made without consultation from Congress or opportunity for comment from professional economists or the public. Critics responded that this number is among the most important because inflation is a function of the money supply, tabulating its cost is negligible, and not keeping track of the total money supply is potentially crippling to our overall economy through the risk of inflation. Critics suspect that the Fed is hiding how much they’re increasing the money supply "Without knowing how money is created and managed, all other topics concerning money are out of context. This is crucial: regarding trillions of dollars o of economic power, you have no idea where money comes from. It’s time for you to learn. When people don’t know how money is created and managed, the only thing between them and tyranny is trust in ethical government." "American democracy is founded upon cautious distrust of government. To compensate for temptations of power and personal profit in government, the US Constitution is designed with checks and balances. However, because checks and balances can be thwarted if politicians are unethical, the only real protection of liberty is citizen responsibility. American democracy is dependent upon our taking personal responsibility for understanding our most important economic and political issues." IF YOUR GOING TO TELL ME I AM MISLEAD PLEASE PROVE THIS if you read this and don't understand then please dont comment. the only reason you opened this question was because OBAMA was in the title...

a private banks now runs the united states? The following facts are verifiable in common economic dictionary and encyclopedia information, and hold unless refuted. I welcome any correction of inaccurate information and/or inclusion of useful information. Because the facts are so different from what most people believe, cognitive dissonance will push some people to reject the facts. Please reaffirm your commitment to embrace the facts. Here we go: The privately owned and run Federal Reserve is to be handed sweeping new powers under Obama administration proposals in a deal that will please bankers who lobbied for more Fed “oversight” of their activities." The new rules would see the Fed given the authority to “regulate” any company whose activity it believes could threaten the economy and the markets. “The final plan due to be released on Wednesday — which originally aimed to streamline and consolidate banking and securities regulation in one or two agencies — now is expected to sidestep most jurisdictional disputes and simply impose across the board standards to be applied by all financial regulators, according to administration and industry sources, ” reports the Washington Times. How simultaneously dangerous and ridiculous it is that the Federal Reserve is given more authority to oversee the economy. This is the same privately run entity that refused to comply with congressional demands for transparency and disclose the destination of trillions dollars in bailout funds. It is the same privately owned entity that has withheld internal memos, in spite of freedom of information act requests. It is the same private entity, run for the most part by European banking elites, that has arrogantly refused to tell Senators and Congressmen which banks were in receipt of government loans. The government is ready to hand over everything to a monolithic private corporation and a gaggle of bastard banker offspring, that have gobbled up an amount close to the entire GDP of the country in taxpayers’ money and figuratively stuck the middle finger up regarding questions over where that money has gone. about the fed: The Fed is privately-owned by the banking industry with their meetings closed to Congress and the public. The purpose of all business is to maximize their own profit with limited interest in the public good. The Fed is only audited by giving their accounting books to an independent firm to verify their math is correct in the books. Because the Fed is not strictly and transparently regulated by Congress, we have to trust the Fed that the numbers on their books are accurate. The only “oversight” from Congress is quarterly interviews for questions and answers with the Chair of the Federal Reserve. Presidents appoints the seven Board of Governors to help manage the Fed, but historically these selections always come from a short-list of candidates selected by Fed ownership "you define money as anything generally accepted for trade. However, in the real world something is money only when the government authorizes it as “legal tender.” Its purpose is to facilitate trade. Fiat money (not exchangeable for a commodity that “backs” the currency) is all that’s required for this purpose because the government enforces its acceptance as payment. Commodity money is the attachment of money to a thing, like gold or silver. This is not needed for legal enforcement and introduces fluctuation as the value of the attached commodity changes. If you’ve been aware of the wildly escalating price of gold, you’ll understand the risk of a wildly fluctuating value of commodity money. "Bank credit is the legal power government has given banks to create a form of money out of nothing and lend it to the public at interest. Bank credit increases the supply of money, causes inflation (by definition as the supply increases), and devalues the money already possessed by the public. Inflation is a hidden tax on your money because purchasing power decreases with inflation. The banking industry benefits from this policy of creating credit out of nothing and lending it to us at interest, while the public has the costs of paying banks to “borrow” money at interest while existing money is devalued. I use the term “borrow” because the loan wasn’t something possessed by the bank. The loan was created out of nothing when you asked for the loan. This is difficult for many to grasp." When banks lend money, the interest charge can double the amount of money the customer must repay. Through fractional reserve banking, only the amount leant is created (principle) but not the interest. Because our US money is only created as debt, and the interest is never created, we can now explain some extraordinary but predictable outcomes of this monetary system. Money is debt, created out of nothing by private banks, and then leant to us to repay at interest. The debt will always be greater than the money supply. It’s impossible to ever repay total debt; we are in debt forever in this m monetary system. To put this in numbers, the total debt of the US public is currently over $50 trillion. The total US money supply is somewhere around $13-15 trillion. We don’t know the exact amount anymore because the Federal Reserve stopped publishing that figure in 2006, claiming it was unimportant and “too expensive to tabulate and print.” This decision was made without consultation from Congress or opportunity for comment from professional economists or the public. Critics responded that this number is among the most important because inflation is a function of the money supply, tabulating its cost is negligible, and not keeping track of the total money supply is potentially crippling to our overall economy through the risk of inflation. Critics suspect that the Fed is hiding how much they’re increasing the money supply "Without knowing how money is created and managed, all other topics concerning money are out of context. This is crucial: regarding trillions of dollars o of dollars of economic power, you have no idea where money comes from. It’s time for you to learn. When people don’t know how money is created and managed, the only thing between them and tyranny is trust in ethical government." "American democracy is founded upon cautious distrust of government. To compensate for temptations of power and personal profit in government, the US Constitution is designed with checks and balances. However, because checks and balances can be thwarted if politicians are unethical, the only real protection of liberty is citizen responsibility. American democracy is dependent upon our taking personal responsibility for understanding our most important economic and political issues."

Will ending borrowing our own money from the Federal Reserve Bank at interest restore our economy? THE RON PAUL SOLUTION: "Here's what we HAVE to do to solve the problem," says Paul: "1) Let banks and companies fail if they cannot survive on their own 2) Stop inflating asset prices with government purchases and bailouts 3) End the Trillion dollar annual spending to maintain the US Global Empire 4) Bring all our troops and assets home from around the world 5) End the fractional Federal Reserve banking system that caused the hyper asset inflation through pyramid debt 6) Have the US Treasury take charge of our monetary system and create a non debt based system. Former Asst. Sec. of the Treasury Paul Craig Roberts (one of the few who has bucked the system) agrees with this in general when he writes, "The trillions of dollars in credit default swaps (CDS) should be declared null and void. These 'swaps' are simply bets that financial instruments and companies will fail, and the bulk of the bets are made by people and institutions that do not hold the financial instruments or shares in the companies... There is no reason under the sun for taxpayers to bail out gamblers... "To preserve the dollar's status as reserve currency, a credible policy of reducing both budget and trade deficits must be announced. In the near term the budget deficit can be reduced by $500 billion by withdrawing from Iraq and Afghanistan and by cutting a bloated defense budget that represents the now unattainable goal of US world hegemony. The trade deficit can be significantly reduced by bringing off shored jobs back to America [can't be done without a wholesale changing of the labor, environment and tax regulations that drive companies overseas (as much as lower labor costs]. "This approach to the economic crisis stands in marked contrast with the approach of the gangsters running US economic policy. The gangsters are using the crisis as an opportunity to steal from taxpayers and to finance their misdeeds and exorbitant salaries with Federal Reserve loans. Their shills among economists and the financial press tell the people that the solution is to fatten up the banks with funds so they will resume lending to an over-indebted public that will then return to the shopping malls. This unrealistic approach to a serious crisis indicates a leadership crisis on top of an economic crisis." It's not a leadership crisis in terms of lack of understanding or lack of competence. This is a conspiracy of greed and power. A little review of the nature of this conspiracy is in order.

please help with government and U.S. and Global Economics questions? 5. Which of the following best describes a fractional reserve banking system? A banking system in which banks have only partial control over the interest rates they charge on loans. A banking system in which banks keep a portion of deposits on hand to satisfy their customer's demands for withdrawals. A banking system in which a large portion of the bank's assets are digital money rather than bills and coins. A banking system in which net worth is calculated by subtracting a fraction of liabilities from assets. 6. Which of the following best describes how the Federal Reserve Bank helps banks during a bank run? The Federal Reserve Bank can provide a short-term loan to banks to prevent them from running out of money. The Federal Reserve Bank acts as an insurance company that pays customers if their bank fails. The Federal Reserve Bank has the power to take over a private bank if customers demand too many withdrawals. The Federal Reserve Bank regulates exchanges to prevent the demand for withdrawals from rising above the required reserve ratio. 7. Which of the following best describes monetary policy? Regulating transactions in the currency exchange market Raising and lowering the foreign exchange rate Determining the design printed on the national currency Managing the economy by controlling the money supply 8. Which of the following best explains why raising the discount rate affects the money supply? When the discount rate is high, banks have less incentive to give loans because they make less profit on these loans. When the discount rate is high, banks can loan out a larger portion of their reserves. When the discount rate is high, banks keep more reserves on hand to avoid paying a lot to borrow from the Fed. When the discount rate is high, banks are able to charge lower interest rates so that more people can afford to take loans. 9. Which of the following best explains why Treasury bonds have an effect on the size of the money supply? The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits. The amount of Treasury bonds in circulation affects both unemployment and inflation. The government can spend more money and charge lower taxes by using Treasury bonds. The interest paid on Treasury bonds influences the interest rates charged by private banks. 10. Which of the following actions is most likely to result in a decrease in the money supply? The Federal Reserve Bank buys Treasury bonds. The government sells a new batch of Treasury bonds. The required reserve ratio for banks is decreased. The discount rate on overnight loans is lowered.

Do you know about our economy? I need help with these.. could anyone help? 1.Which of these investments is likely to be the safest? 1) A savings account 2) Land 3) Mutual funds 4) Corporate stocks 2.When economists refer to capital resources, they are describing 1) money in banks. 2) factories, equipment, and machinery used for producing goods and services. 3) fertile soil, mineral deposits, forests and similar sources of raw materials. 4) the workers and managers who produce goods and services. 3.When evaluating a buyer's creditworthiness, lenders often look at the "three Cs of credit." The "three Cs of credit" are 1) calculation, cash, and candor. 2) character, capacity, and capital. 3) calendar, character, and capital. 4) carefulness, comfort, and command 4.In order to compare bonds, investors usually compute the bond's ____________, the annual interest divided by the purchae price. 1) price-earnings ratio 2) past performance 3) future yield 4) current yield 5.The ______________ is a stock performance index that used the price changes of 500 representative stocks as an indicator of overall market performance. 1) Standard and Poor's 2) Dow Industrial Average 3) Nasdaq 4) Fortune 500 6.The President of the United States appoints the ________ members of the Federal Reserve Board of Governors to ________ year terms. 1) 5, 4 2) 8, 15 3) 7, 14 4) 10, 12 7.Reserves are used to _____________. 1) clear check and control the size of the money supply 2) increase the money supply and lower inflation 3) decrease the money supply and raise inflation 4) increase Gross Domestic Product and lower inflation 8.A portion of the deposits in the form of coins and currency that banks and other depository institutions are required to hold are called ________ reserves. 1) monetary 2) excess 3) fractional 4) legal