1. So, the US creates its own money without interest, could it be so?
2. Is the Fed a public institution then? No private bankers?. I am reading there is involved private ownership, and the issuing of the notes, and the lending to the US government, which has to pay back at interest. Is all of this just false?
3. How does the Fed make profit?
So, I am the "conspiracy guy" and you are the "anti-conspiracy guy". I just want or would like the true, and I am reading from different resources about debt-money system, fiat money, you know, all that stuff.
I ONLY PURSUE THE TRUTH, I DON´T CARE ANYTHING ELSE, TRULY.
Just a question: Why are some people saying so? I mean, what do they intend by spreading such theories, what is your view on that? , any particular reason why they want to say that the Fed is private, that the government has to borrow money, AT INTEREST, to them?
I ONLY PURSUE THE TRUTH, I DON´T CARE ANYTHING ELSE, TRULY.
Just a question: Why are some people saying so? I mean, what do they intend by spreading such theories, what is your view on that? , any particular reason why they want to say that the Fed is private, that the government has to borrow money, AT INTEREST, to them?
Then, to try to make sense of this: The government created the dollar 300 years ago, and they create it and issue it now, without borrowing to any bank at all, just they (US peope= US government) are sovereign regarding THEIR OWN CURRENCY.
Is that so with Norway or Turkey or Russia or ....Do they have to borrow at interest to any entity?
Is that so with Norway or Turkey or Russia or ....Do they have to borrow at interest to any entity?
My point:
Who created the dollar? Why then borrow it AT INTEREST?!
Was the dollar created by the US government? If so, why does it have to borrow it at interest to a private entity?
Sorry if I didn´t myself clear.
The Fed (by Congressional mandate) mints currency as needed and sets the interest rate to drive up/down deflation/inflation as the economy dictates. The gov't doesn't buy the money (they already own it), investors (usually American citizens) do via Treasury bonds. Because the gov't owns the money and the Fed operates under Congressional mandate, any profit goes into the Treasury as it has 1st rights to the money. The Treasury ether uses the money to fund gov't programs (as dictated by the Federal Budget) or sells it as the previously mentioned bonds.
I am reading that other governments and banks and the Fed BUY the bonds, and that the government sells them when it needs money.
Still, for me this is a major question:
What do they win (the conspiracy people) by saying that THE GOVERNMENT BORROWS THE MONEY? Are they so bad informed? Didn´t they make a research before publishing those books?.
Another: How does the Fed make profit?
They're usually anti-gov't types (usually libertarians but sometimes outright anarchists) trying to convince people who would otherwise be statists (I use the word in it's true sense) to join them in weakening the central gov't. They do this by warning of a 'NWO' or everyone becoming slaves to the banks.
By selling bonds for more then what they have to pay out in dividends usually.
So, they (the conspiracy people) want to weaken the government, so that they take over the power, is it so?, is that their purpose, to gain power , because if they want to weaken the government, it is to gain power, like Ron Paul. I insist on saying I am just a searcher of the truth, I don´t mind at all anything else.
Would you mind re-phrasing this?: "By selling bonds for more then what they have to pay out in dividends usually" . I am Spanish and I didn´t get the meaning, sorry.
So, this is not true at all: "...other governments and banks and the Fed BUY the bonds, and that the government sells them when it needs money..."
Ron Paul does not believe in a conspiracy theory (at least not according to what he says publicly, which is all we can really go by). He, like most supporters of the Austrian school, feel that there are better alternatives to monetary management than central banks.
That aside, these are a few facts that might clear things up for you:
-the Treasury is part of the fiscal government. It issues bonds when it needs to borrow money.
-the Fed controls the monetary supply and looks to target inflation (as well as unemployment) as per its mandate
-the Fed can buy and sell bonds if it needs to in order to help target inflation. Usually it relies on the interest rate, but when interest rates are already near 0, it has to rely more on asset purchases.
That aside, these are a few facts that might clear things up for you:
-the Treasury is part of the fiscal government. It issues bonds when it needs to borrow money.
-the Fed controls the monetary supply and looks to target inflation (as well as unemployment) as per its mandate
-the Fed can buy and sell bonds if it needs to in order to help target inflation. Usually it relies on the interest rate, but when interest rates are already near 0, it has to rely more on asset purchases.
No, they don't want to take power. That's the point. They want a decentralized state or anarchy.
Well if they sell $50 bonds but pay out less then that when the bond holders cash in, they make a profit.
What?
No, the Fed isn't allowed to buy from the Treasury directly. It buys from a secondary market- namely the primary dealers on Wall St.
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