Where Does Money Come From?

Is there one person in a thousand that could actually write a paragraph on where money comes from?

Probably not.

Why?

Because we BELIEVE that SOMEONE ELSE has a good explanation for why our PAPER MONEY has value....meanwhile we just stroll around like sheep, assuming that someone will always bring us some grass to eat....oblivious to the dangers lurking all around us.

How is money created? If you ask average people on the street this question, most of them have absolutely no idea. This is rather odd, because we all use money constantly. You would think that it would only be natural for all of us to know where it comes from. So where does money come from? A lot of people assume that the federal government creates our money, but that is not the case. If the federal government could just print and spend more money whenever it wanted to, our national debt would be zero. But instead, our national debt is now nearly 16 trillion dollars. So why does our government (or any sovereign government for that matter) have to borrow money from anybody? That is a very good question. The truth is that in theory the U.S. government does not have to borrow a single penny from anyone. But under the Federal Reserve system, the U.S. government has purposely allowed itself to be subjugated to a financial system in which it will be constantly borrowing larger and larger amounts of money. In fact, this is how it works in the vast majority of the countries on the planet at this point. As you will see, this kind of system is not sustainable and the structural problems caused by such a system are at the very heart of our debt problems today.

So where does money come from? In the United States, it comes from the Federal Reserve.

When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.

Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.

The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.

So why does the U.S. government go to all this trouble? Why doesn't the U.S. government create the money itself?

Those are very good questions.

One of the primary reasons why our system is structured this way is so that wealthy people can get even wealthier by lending money to the U.S. government and other national governments.

Here;  http://theeconomiccollapseblog.com/archives/where-does-money-come-from-the-giant-federal-reserve-scam-that-most-americans-do-not-understand

Holy illusion!!  You mean they are just creating a billion dollars out of thin air?  You mean this whole thing is one giant Ponzi Scheme created to make other people wealthy while the common man looses all his savings? 

Bernie Maddoff (the king of Ponzi schemes) was asked where he got the idea for his $5 billion scheme, and he replied from his jail cell, "From the Federal Government, of course."

Of course we KNOW this current system MUST FAIL so that the NEW WORLD ORDER system can come in. 

And of course, as is the problem with any massive bubble....you just don't know exactly WHEN the massive bubble is going to pop.

Hat tip to Kim H.