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The Basics of How is Money Created Serve to Enrich Our Knowledge of the Bailout World and the Agenda of the Elite Who Manufactured the Economic Disaster for Their Profit.

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How is money created when the government is promising billions of dollars in stimulus money to every cause under the sun except the individual taxpayer?

It becomes useful to understand where the American government comes up with the funds it promises.

Sadly, the way money is created is no longer simple, as in the past. At many points throughout history, in order to create money it was necessary to literally dig it out of the ground.

The use of gold and silver standards meant the money supply was inherently limited, as there was only so much gold and silver to be had in the world.

The very scarcity of the stuff of money meant it had inherent value regardless of culture, and that its stability was guaranteed because it was in constant demand but short supply.

Asking how is money created in those days would have led to an informative discussion about miners and refiners of ore who created the hard backing of the currency.

Fiat currency, such as Americans have now, has no hard backing save the promises of the government that the money is worth what the paper says it’s worth.

As governments shift, so does the purchasing power of the dollar.

Currency fluctuations and a certain instability are the hallmarks of a fiat currency, yet bankers like them precisely because they can be more easily manipulated.

The answer to “how is money created?” under such a situation is as simple as a stroke of a pen, although the truth takes much longer.

America’s money problems began in 1913 when Congress illegally gave the right to print and issue the American dollar to a private corporation, the Federal Reserve.

The Fed can create money by simply adding any amount into the government’s account, making it a loan to them and charging interest.

In this way the Fed starts with nothing but ends up with trillions of dollars owned to them by the U.S. government and hence the U.S. taxpayer.

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Why a Manipulate-Able Currency?

So what is the benefit of such a bewildering and easily manipulated means of money supply and distribution?

Wouldn’t it be simpler to go back to the old days, with a gold or silver standard and stable monetary values?

Well, it depends which side of the equation one sits on for a currency.

When the answer to “How is money created?” has a mining rather than a majority vote connotation, consumers and individuals tend to benefit because money holds value and is very stable.

Yet governments are hamstrung in their ability to spend, because the money supply is limited.

And the banking elite are hamstrung in their ability to profit because they can’t issue money on demand.

Since everyone knows how much governments love to spend and bankers love to profit, it should come as no surprise that historically over-budget Congressional bodies were easily convinced to move away from the gold standard, or any kind of fixed standard.

They much prefer the no-limits fiat way, where, due to fractional reserve banking, a $100,000 deposit can turn into a million dollars of spending power.

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Reigning on the Spenders

The trouble with a “How is money created?” system that has lobbyists thronging the aisles of the treasury is that it removes limits from governments, allowing them to ruin themselves with debt.

Americans need to ask themselves if that is what is happening now.

The government, with its Federal Reserve fractional banking system owners and leveraged deposits program, is having money created out of nothing and then spending twice as much as it has even then!

California is not the only state that is broke; most just hope no one notices. Spending the country to ruin leaves few outs and options.

Cutting back and limiting expenditures would be radical, yet citizens need to insist that all the stimulus with created funds is disaster for the country.

Only by reigning in the spenders can Americans attempt a stable currency and maybe even return to a hard currency instead of fiat money standard.

And only by disbanding the banking elite can we ever hope to abolish the Federal Reserve and gain control of our money and financial well being.

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