Do you know how the banks get your money?? Inflation??

Did you know that the private Federal Reserve %26quot;banks%26quot; are the cause of inflation? They are NOT government agencies. The government goes to the Federal Reserve, asks for some money to be created in an online account because they already have too much debt, and the government uses that money to pay the bills. So then a postal worker gets some of that money as salary. He deposits some of it into a bank, say $1,000, because he knows that inflation will reduce the value of his money if he doesn%26#039;t deposit it. Then did you know what the bank does with that money? It loans 900% of that amount out to other working citizens at a high interest rate. That%26#039;s right - under federal law banks only have to keep 10% of their money on hand. So the bank keeps the original $1,000 and can loan out $9,000 without actually having the extra money on hand. So the bank has $10,000 now and can loan out the other 90% ($9,000) at high interest. This is how they make all that money at our expense. What to do??

Do you know how the banks get your money?? Inflation??postage rate

Banks are evil. What else can be said?

Do you know how the banks get your money?? Inflation?? loan

The way money is handled today has brought unparalleled prosperity.

Think how much more prosperous and vibrant a modern economy is than one a hundred years ago. Back when Russia was building the trans-Siberian railway, (started around 1891) they ran into a snag... a big snag. Their treasury didn%26#039;t have enough money to finance it. If you can believe it, back when money was not as creatively used and loaned, a huge country like Russia could not even afford one major construction job (granted, it was 5,772 miles long, but countries today are crisscrossed today by train tracks, highways, bridges, etc. and it doesn%26#039;t make a big dent in a government%26#039;s budget).

What about people who need a loan for a car or a house? A hundred years ago, personal loans were much less common, and hence home ownership was nowhere near what it is today.

The Federal Reserve cannot really cause inflation. If the economy startes overheating, the Fed will raise interest rates to cool it down. Everthing is monitored quite closely, and partly as a result, we have unparalleled prosperity.|||- Re: What to do?

First thing is to ensure you have all your information correct

- Re: private Federal Reserve %26quot;banks%26quot;

While the Federal Reserve branch banks may be considered private (though the Fed disagrees - see http://www.federalreserve.gov/generalinf... ), the Federal Reserve system is run by the Board of Governors, a government agency.

Even more important to your point, monetary policy is controlled by the Board of Governors (a federal agency) not the branches.

- Re: The government goes to the Federal Reserve, asks for some money to be created in an online account

Well, this is a complete misunderstanding on how the sysem works.

In fact, by design, the Federal Reserve was quasi-independent to reduce the temptation for the president and congress to just create money to pay bills. Look up incidents of hyperinflation and you will find the root cause of most is abuse of the power to create money in reaction to fiscal difficulties.

When the Government (excluding the Fed Res) needs money, they can only tax or borrow.

The Fed may or may not buy the T-Bills on the open market (they DO NOT buy T-Bills directly from the Treasury) depending on demands for currency.

- Re: under federal law banks only have to keep 10% of their money on hand. So the bank keeps the original $1,000 and can loan out $9,000

sounds like you have a misunderstanding of how the depositer multiplier.

In your example, the bank can loan out only $900 of that $1000 deposit. Period.

However, if the person receiving the loan re-deposits it, the bank can loan out 90% of that also.

And so it goes, so that in theory, if loaning+redepositing will generate 9x in new interest-paying deposits, offset by 9x in corresponding interest-paying loans.

Now in reality banks have to maintain much higher reserves because depositers (especially checking) and borrowers want to use their money, not leave it idle. So in practice, banks maintain about 60-70% reserve for checking, and 30-40% for savings.

oh, A-C. You obviously have the compassion and drive to be a terrific activist. However, you allow yourself to be led astray by the looking-glass world of fringe web sites. If you want to be effective, be skeptical of everything you read, get a command of the facts. Read up on %26quot;confirmation bias%26quot; (http://en.wikipedia.org/wiki/Confirmatio... ) and be your own toughest critic.