Modern Money Mechanics Federal Reserve Part 3

A breakdown of "Modern Money Mechanics" which was published by the Federal Reserve Bank of Chicago. Do you want to understand the core concepts(flaws) to the US monetary system and economics? Do you want to know how new US currency is created? Watch this series and you'll soon understand why there is so much debt and why we need change.

Category:

Nonprofits & Activism

Tags:

• Modern
• Money
• Mechanics
• Federal
• Reserve
• Part
• creation
• scam
• illuminati

[lixiao2882]

Reserves come from Federal Reserve purchasing US government bonds. green papers in exchange for treasury papers.

[MelodicNightmare]

Yes, this is where some of our "money" originates. However, it's expanded once it enters the banking system 10x-30x and maybe more. Reserves can be physical cash at each bank or a balance of "money" held at the FED. This is electronic.

[exxxxxxxx]

Youre wrong. 10m on reserve can create 50m of demand deposits sure. But if anyone tries to wire that 50m from one bank to another the bank has to get hold on extra 40m reserves - this reserve money is the settlement asset. Its all there in MMM. It would have to borrow the 40m from elsewhere. Its quite as simple as you think.

[MelodicNightmare]

Yes you are correct about this. I got my terminology mixed up. The 10 million would allow banks to create 50 million in demand deposits. The point is though, this money never leaves the banking system, it's just temporarly in flux when being transferred. The private banking system benefits from this system as a whole.

[sheeeeeeeeeeeeeeeit]

@MisterPerfikt "Banks are not conspiracies" grammar fail!

[MisterPerfikt]

@sheeeeeeeeeeeeeeeit Comments like this only serve to prove my point. Thank you, sheeeeeit.

[sheeeeeeeeeeeeeeeit]

@MisterPerfikt How can banks be conspiracies mr i call people unedumicated? celticbandit doesn't know what he's talking about but you're a hypocrite.

[patriotsundergod]

It would be awesome if you would include a link to this document in each of your video descriptions. If link is not available please upload torrent and seed.

[InquiringMind63]

Also interest or "userary" was illegal throughout Europe for centuries. Banks that have the power to create money out of thin air should not be charging interest. It's fraud.

[InquiringMind63]

MisterPerfikt: I think you fail to see his point here. It's that why is an exclusive club, "The owners of the Federal Reserve", lending our government the fiat money AND are making a huge profit from it. Our government is in a perpetual debt that increases every year since we can pay back the loan with interest attached to it without borrowing more money from the Fed. That's the fraud his pissed about. It doesn't have to exist. We don't have be under this indentured servitude that we're in

[MisterPerfikt]

lol @ some unedumacated comments. Banks are NOT evil, nor are they conspiracies. Banking was around LONG before the practice of fractional banking started. Money is created when you sign your name. When you go to the bank for a loan, the money is created when you sign on the dotted line. They are lending you money you created, they create new reserves out of that and loan it to others, starting the cycle again, AND they get you to pay back your own money at interest. It's a beautiful thing.

[lixiao2882]

I don't know about the I can't post ordeal. I mean to correct a mistake. r in the equation shold be the rate of decay of the deposit, which is 90% since the reserve requirement is around 10%

[lixiao2882]

That's correct. deposits expand approximately 10 times and assets expand about 9 times, without considering discounting and rediscounting, under the current US federal reserve system. The book did not state the equation used to approximate the expansion, which is Sn=a1/(1-r). Sn is the sum of deposits after n times of expansion, a1 is the first treasury deposit, and r is the fractional reserve ration. They used high school math to conquer the world!!