For some, the US dollar is the place’s fiat currency. It all starts off with the US Treasury just who creates bonds which are federal IOU’s that are paid back using a specific time period with desire.
It is a Ultimate Government backed and sponsored pyramid scheme, where only the banking high level who own the Fed and other central banks around the world, massively profit by stealing withgenerations of innocent locals.
In so doing actually leaving your profile with only $10. 00 or ten percent of your 100 % deposit. However your loan provider statement will still show the entire $100. 00 funds or one hundred percent of your deposit, on deposit in your account.
Once again nothing backs these dollars except IOU’s. Furthermore, for the hard work each individual US citizen does to earn his or her salary, a portion of it eventually ends up with the Treasury in the form of income taxes. This is exactly what pays the principle and interest on the bond that the Fed bought with a check from nothing. US citizens are actually forced into paying income taxes for the use of our present-day money supply system.
Which is after that spend on wars, military, united states government salaries, social programs, open public work projects and other debt spending that keeps with re-occurring. Next all those united states government employees and military staff take their salaries and deposit them into different bank accounts throughout the nation. This is how the fiat capital now enters the commercial banking sector.
The next person after that comes along, and borrows funds. Once the new borrower pays off the seller for what they bought the money again is re-deposited into the bank and there is $271 dollars concerning deposit. This creation of money through deposits and loans (fractional reserve lending) keeps re-occurring to when at some point your original $100. 00 deposit has grown to help you $1000. 00 (ten times the amount of your original deposit) in fiat currency constructed from the bank.
The person who received your money from the bank as a loan will use it to buy an issue such as a car. Then that person will pay the car dealer together with the money he borrowed. Today the car dealer will bank this money into your partner’s own account at the loan company. Now there is $190. 00 on deposit and the lender can legallysteal Ninety percent again or $81. 00 and lend the idea out.
Once again that banks go back to the US Treasury auctions the next month choosing more bonds and selling them to the Federal Save. And every month this bike of buying and selling keeps on getting repeated.
Finally over time, there becomes surplus bonds at the Fed and cash in the Treasury. The Treasury now takes this kind of excess cash and stores it into the various organizations of government.
Nonetheless it’s important to note, that when any Fed writes and concerns a check, there is no money what so ever on the account to cover the amount of which usually check. The account a lot of these checks are written out of will always carry your zero balance. Therefore just about every dollar that exists, is actually borrowed and must be refunded.
Within the industrial banking sector we now have the things I refer to as « magic money creation » which is literally called « Fractional Reserve Lending ». Here is an example of how fractional reserve lending works. Let’s pretend someone deposits $100. 00 into a bank account, the bank the fact that received that deposit is right now legally allowed to remove $90. 00 or ninety percent of your deposit and re-lend it to someone else.
The entire system of making money from nothing is a ready-made scam. It all starts with the Federal Reserve and the YOU Treasury exchanging IOU’s. A good check is an IOU designed for cash and a relationship is an IOU to be reimbursed with interest at some later date. Cash comes into existence once the Fed problems someone a check.
The Treasury holds regular auctions to sell off it’s bonds to primary dealers, who are the major banks. Then the US Federal Park enters the game by getting all the bonds from the banks through something called « open market operations ».