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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Nadine Carroll who wrote (72229)	9/21/2004 3:49:29 AM
From: Ilaine	Respond to of 793896

>>The Government and the Fed create more at will. No, the Federal Reserve can only loan money, not create it. It's backed by the promises of the borrowers to repay - including interest. And the only thing the Fed can loan is M1 (part of M1 at that). The rest of it is "created" by financial institutions doing what they've done for centuries, maybe even thousands of years (really it's not clear), loaning money at fractional reserve. It has never been the case in recorded history (OUR recorded history) that money was not loaned at a fraction of bank reserves (around 30-40%). That's part of the genius of capitalism. And it only works because our system is reliable enough for people to trust it.

To: Nadine Carroll who wrote (72229)	9/21/2004 10:50:50 AM
From: Ilaine	Read Replies (1) \| Respond to of 793896

>>In what way is the US Dollar not unbacked fiat money? Too sleepy to articulate this well last night, but the use of the US dollar as the world's reserve currency is one of the clearest indications of the extent of the American empire. What are the indications of the extent of an empire? One peace, one law, one language, one currency. The "one law" mostly exists as commercial law, but that's the way it always was. Local law governs purely local matters like marriage and property.