Quote:
Originally Posted by sleazybunny
Never heard of stickyfingers.
A National Central Bank like the US Fed Reserve or UK Bank of England, does not "loan out" each note issued with an associated interest rate. Notes originated as "promisary notes" which are a promise to exchange the note for "money" , originally gold and silver. You would take your gold to the bank exchange it for a promisary note, (easier to carry!), then take this to "pay" for goods or services. The person excepting it would take this because they knew it was backed by the central bank and that it was supported and accepted elsewhere, and ultimately they could get the gold from the bank if they took it back there.
Theoretically you could take each note you have to your central bank and ask for it to be exchanged for that "money". As gold standard has been abandoned this would no longer be gold.
So the first premise this wee film is based on sort of invalidates the rest of the argument it tries to build.
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Ok, so how does the Fed Reserve stay in business without collecting any profit?
Banks make money on loans.
If you want to loan some money to make some money would it be a good idea to just
print as much money as you want to loan and then loan it with interest?
It's kind of like a "no brainer" to print money and then loan it out.
So, I don't know how the Fed Res actually works but the above scenario makes
sense to anyone trying to get rich.