RE:RE:Dollar and interest rate-important education for all. dutchmann64 wrote: .....the dollar is backed by Gross domestic product.!!!! In other words my sweat equity. Time and Labour of every working stiff. Think about it.
I guess you are one the guys that just don't get it. It looks like this is hard matter for you. Do you understand what are you saying? How can dollar be created and backed by GDP? What is the mechanisam for that?? Time and Labour?? Looks like a bit hard matter for you.
Dollar is printed every time Bond is printed and sold. When Government prints BOND (debt) Federal reserve "prints'' money and gives it to Thresury. This is BAse money.
95 percent of "money" is "created" in comercial banks when you get in to debt via morgage, car loans, or personal loans. That's how Comercial bank "creates money"
and small percentage of money is created by Credit cards. Every time you swipe the card, you create the money, when you pay it back, you destroy it.
This is it, nothing else. The is the only way how the "money is created" perod.
Please, spare us with those GDP, Time, Labor fairy tales lies. Thay have nothig to do with money creation, period.