In simple terms......I (The Federal Reserve) LOAN you (the economy (individuals, and/or nations)) one apple (Fiat Currency), at the end of the week I require two apples (interest charge of one apple + Principle apple) from you. But I can't get back two apples from you unless I produce (inflation) another apple into the economy.
THIS is what CAUSES decrease in purchasing power, which can also be interpreted, as Khan would say....DECREASE in DEMAND and/or DECREASE in INTERESTS paid to the BANKS.
If people are having a hard time understanding this concept. YOUTUBE ZeitGeist Fractional Reserve Banking, it will explain what Khan is saying alot easier!
@AdamMedd We are not the world's largest manufacturer, but we are the world's largest debtor. Look in your house and see how many things are made in America. The trade deficit is enormous, over $50 billion / month. Our economy is based on consumption and 70% of our economy is from the SERVICE sector. The US imports other countries stuff and exports to them our dollars..but they don't really want our dollars, they ultimately want goods because the ONLY reason to export is to import.
And i hope obama is going to do something about this soon so we don't enter a finacial debate. He's a good president but he definitely needs to improve. I can't judge him though cause its one of the hardest jobs in the world i don't classify people by their looks like we usually do. OR accencts. (((GO OBAMA!!!)))
Corruption, sorry Sal my name is very non appropriate. This is coming from a 14 year old mind this is very hard :((( so hard that I've been eating this, per fps.
In simple terms......I (The Federal Reserve) LOAN you (the economy (individuals, and/or nations)) one apple (Fiat Currency), at the end of the week I require two apples (interest charge of one apple + Principle apple) from you. But I can't get back two apples from you unless I produce (inflation) another apple into the economy.
THIS is what CAUSES decrease in purchasing power, which can also be interpreted, as Khan would say....DECREASE in DEMAND and/or DECREASE in INTERESTS paid to the BANKS.
EasternMerchant 1 day ago
If people are having a hard time understanding this concept. YOUTUBE ZeitGeist Fractional Reserve Banking, it will explain what Khan is saying alot easier!
EasternMerchant 1 day ago
I don't know why, but Bernanke looks like a Billy Goat in this video.....
EasternMerchant 1 day ago
@MotherFucker6298 go Obama? Lol have you ever read the emperor with no clothes?
Mattothee 3 months ago
@AdamMedd We are not the world's largest manufacturer, but we are the world's largest debtor. Look in your house and see how many things are made in America. The trade deficit is enormous, over $50 billion / month. Our economy is based on consumption and 70% of our economy is from the SERVICE sector. The US imports other countries stuff and exports to them our dollars..but they don't really want our dollars, they ultimately want goods because the ONLY reason to export is to import.
FlipThatBond 5 months ago
Keep it up Sal keep it up your rate is great verbalization.
MotherFucker6298 5 months ago
And i hope obama is going to do something about this soon so we don't enter a finacial debate. He's a good president but he definitely needs to improve. I can't judge him though cause its one of the hardest jobs in the world i don't classify people by their looks like we usually do. OR accencts. (((GO OBAMA!!!)))
MotherFucker6298 5 months ago
This subject can be very hard to understand.
MotherFucker6298 5 months ago
Its not us its them they are so corrupt that they can't give us our money back. e.e its a gamble of life and money.
MotherFucker6298 5 months ago
Corruption, sorry Sal my name is very non appropriate. This is coming from a 14 year old mind this is very hard :((( so hard that I've been eating this, per fps.
MotherFucker6298 5 months ago