Where Does Money Come From?
Permit me to issue and control the money of the nation, and I care not who makes the laws.
~ Mayer Anselm Rothschild, Banker
I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.
~ Thomas Jefferson
Where does money come from? - As best I can tell, money is literally created from debt. So when a bank is established, it makes a deposit into a Federal reserve bank. The amount they deposit determines how much money the bank can (initially) loan. So if a bank puts $10,000 into the Federal reserve, they can loan something like 10 times that, or $100,000. In other words, the act of depositing into Federal reserve gives them the right to loan $100,000. Where does the extra $90,000 come from?
That's the sleight of hand that no one talks about.
America Needs a Financial Diet - by Will Marre
Will Marre
Financial Diet by Will Marre - Will Marre believes most American households need to get on a financial diet. A typical American household spends 140% of what it earns, which means a typical household borrows money to support its spending. Obviously, we need to spend less than we earn. It takes discipline and, very likely, investing in yourself -- your main income engine. Borrowing for school (instead of for that HD Plasma TV) makes sense, because that investment in education will likely lead to higher income. Money borrowed for the TV will not. Thinking like that is "production" based because you're invest your money in the production engine--YOU!
Currency Trading Research
- OANDA FXTrade - Introduction to Currency Exchange and the FX Market
- Good overview of currency trading.
- OANDA FXTrade - Currency Trading, Forex Trading, Online Currency Trading, Forex
I'm worried that the devaluing dollar/inflation will deplete the value of my savings and retirement. So I want to hedge the currency risk with long term currency options (if such a thing exists). Basically, I'm looking for a form of currency insurance. Options may fit the bill.