Chapter 8 (The Fed Money Creation): Chapter 7 explained money creation via money loaned into existence by banks, on the local level. Chapter 8 explains money creation by the Federal Reserve, where we learn that it is manufactured out of thin air. Perpetual expansion is a requirement of modern banking. The banking system MUST continually expand, because that is how it was designed. By understanding the requirement for continual expansion we will be in a better position to make informed decisions about what is likely to transpire and take meaningful actions to enhance our prospects. www.chrismartenson.com
Crash Course: Chapter 8 – The Fed & Money Creation by Chris Martenson
Posted by admin on August 8th, 2010
Posted in Depression Videos 
bankofenglandact (dot) co (dot) uk
Ok, but what does the fed do with the bonds? You said that the Fed exchanges newly created cash for the bond--which it exchages with the banks. What does the Fed do with the bonds? Do it destroy them? Or do the banks have to pay for the bonds later? And if they do and don't pay, what happens to the Fed and the bonds? Does the fed have to destroy its own real reserves to make up for the excess in the sytem?
gogolando 25 seconds ago
Ok, but what does the fed do with the bonds? You said that the Fed exchanges newly created cash for the bond--which it exchages with the banks. What does the Fed do with the bonds? Do it destroy them? Or do the banks have to pay for the bonds later? And if they do and don't pay, what happens to the Fed and the bonds? Does the fed have to destroy its own real reserves to make up for the excess in the sytem?
@TheSpanishJob Capitalism will always create highly corrupt and powerful companies. The need for ever increasing profit and control is what drives them, and whatever form of monetary based economy you have, from communism to capitalism, you will ALWAYS get the corruption and human suffering that comes from this. I advocate getting rid of this inherently immoral system and bringing about a Resource Based Economy where there are no losers, only winners. And we can do that now, today.
@fiaskolo because they are corrupted and/or manipulated.
Capitalism is defined as a non intervention system, being the individuals the owners of they own rights. Our system is highly manipulated... so why are you blaming Capitalism? We don't live, and havent met Capitalism!! Because of this intervention, bubbles appear and the poor cannot start their business cause these are overtaxed or illegal or because goverment inflation. The gov is the one who has created the fiat money, and the one that keeps you being poor! Search in youtube Ron Paul.Save USA
'When the Federal Reserve writes a check, it is creating money. "
@LazyOtaku
The reason why hyperinflation is in our future.
Better start stocking canned goods, guns, and precious metals(lead).
Won't hurt to have some form of livestock as well....
Asses(ts) to the left of us, big banks to the right, here I am FUCKED in the middle with you.
you sound sexy
bastards! crooks! federal reserve notes are MEANT to be worhtless over a period of time. the criminal financial syndicate called Fed invented this aberrant system of currency and guess what - U.S. government never said a thing - like a good puppet regime it is.
GOLD and SILVER are the only source of real money that is immune to the fiat disease. so beat them at their own game, buy and hold as much as gold as you can. i suggest you to check out MAX KEISER report here on youtube!
The treasury issuing the money would lead to massive inflation to finance welfare and warfare. There is no real difference. The government owns the right to create currency, and guess what, they gave it to the fed. The Feds interest is payed back to the treasury as well.
Your solution then, is not really a solution at all.
@fiaskolo thank god you have a brain don't you wish others would think like you i wish people understood things better
@3daughterskillme true that. greets from romania
@fiaskolo
The goal was to make the Fed independent of the Treasury, i.e. independent of political influence. The hope was that their independence could be based on counter-cyclical economics, not popular politics.
I am not defending the fed, just spreading info. I actually prefer commodity based currency and interest rates set by the market (Hayek).
The reserve act determines that the reserve determines the ammount of money in supply through advisory capacity to audit office and other government bodies.
To retain the fruits of your labor know that you are the ultimate creditor and use your signature to create non-negotiable debt instruments. You are the grantor/beneficiary to at least two trusts.You have a trust deposit at the DTC (Depository Trust Company) via the Federal Reserve and one with the Social Security via the UNITED STATES Inc.
As grantor you can change the trust rules/indenture. Mke a co-trustee perform his/her duty. Like process your debt instrument. US Treasurer co-trustee
US Treasury bonds are backed by the full faith and credit of UNITED STATES Inc. Your ALL CAPS NAME, for example, JOHN H DOE is an entity of the UNITED STATES corporation. A corporate fiction which you have been defrauded into voluntary servitude.
Because you have been defrauded it is, in reality, involuntary servitude.
"National insolvency is caused by Congress spending too much, not taxing too little. " YES! AGREED!
National insolvency is caused by Congress spending too much, not taxing too little.
FreeAccz[dot]info
just send me a free amazon voucher by the way
Although there is much great info in these
videos, I have a problem with one statement.
"Cutting taxes while cunducting 2 wars"
The truth is that as it always does, cutting taxes brings more money into the treasury. Record amounts were collected the last several years under W. Unfortunately, record amounts were spent also, just like under Reagan. Tax cuts DO NOT CAUSE DEFICITS! Never have, never will.
Not my opinion, a matter of record.
great stuff chris. keep it going! Peter Schiff for senate
@aaroncoleman3: Yes. But the government lies with statistics. See Chapter 16.
@25sounds: see Chapter 16. Fudging numbers.