US budget defecit $1 TRILLION - where does this money come from?
#1
Guest
Posts: n/a
US budget defecit $1 TRILLION - where does this money come from?
So this year the US defecit will be over $1 Trillion. That does not include Obamas new £700 Billion recovery effort, so it will really be nearly $2 Trillion.
Where is the US government getting all this money from, who is lending it to them?
Where is the US government getting all this money from, who is lending it to them?
#6
Scooby Regular
Join Date: Jul 2002
Location: Under your bonnet
Posts: 9,173
Likes: 0
Received 0 Likes
on
0 Posts
No one.. it is made up LITERALLY..
Man borrows x amount from bank, signs form, bank sees this as "Man owes us x amount".
Bank then calls this x amount hard cash...
Bank is then ALSO allowed to make up money in a ratio of 9:1 against this already non existent money !!!!!
Look up a video on google videos about "Fractional reserve banking"
You will be like this for a week
Man borrows x amount from bank, signs form, bank sees this as "Man owes us x amount".
Bank then calls this x amount hard cash...
Bank is then ALSO allowed to make up money in a ratio of 9:1 against this already non existent money !!!!!
Look up a video on google videos about "Fractional reserve banking"
You will be like this for a week
#7
Scooby Regular
Join Date: Jul 2002
Location: Under your bonnet
Posts: 9,173
Likes: 0
Received 0 Likes
on
0 Posts
Trending Topics
#8
Scooby Regular
Join Date: Sep 2003
Location: Scoobynet
Posts: 5,387
Likes: 0
Received 0 Likes
on
0 Posts
As far as I know it's pretty much that the US will offer bonds to other countries with a return, so countries like China lend them money (or rather, they 'invest' their money in US bonds), but the US are just spending and spending so god knows how they'll ever pay this back - probably never. The US is truely screwed, and this may be more than just a deep recession/depression and be the downfall of countries like the US. When it becomes clear they won't be paying this money back, no countries will be lending and then what happens...
Last edited by Petem95; 07 January 2009 at 10:05 PM.
#9
Scooby Regular
i,ve heard a couple of amazing facts about the dollar
60% of it exists outside the US -- in russia china etc
and 20% of the physical notes are forged
but then again 81% of statistics are made up
60% of it exists outside the US -- in russia china etc
and 20% of the physical notes are forged
but then again 81% of statistics are made up
#10
No one.. it is made up LITERALLY..
Man borrows x amount from bank, signs form, bank sees this as "Man owes us x amount".
Bank then calls this x amount hard cash...
Bank is then ALSO allowed to make up money in a ratio of 9:1 against this already non existent money !!!!!
Look up a video on google videos about "Fractional reserve banking"
You will be like this for a week
Man borrows x amount from bank, signs form, bank sees this as "Man owes us x amount".
Bank then calls this x amount hard cash...
Bank is then ALSO allowed to make up money in a ratio of 9:1 against this already non existent money !!!!!
Look up a video on google videos about "Fractional reserve banking"
You will be like this for a week
I'm confused, Fuzz.
Bank lends man hard money and records it as debt they are owed. They can't call that hard cash - it isn't, it's debt.
Separately, bank has depositors putting money into their accounts. It's not theirs but they are allowed to lend out a large proportion of it (not a fixed 90% - differs depending on the instritution, scale, capital adequacy etc).
Fractional reserve banking is, in essence, what allows banks to operate - i.e. if they had to keep all of their depositors cash in reserve just in case it's called upon, they wouldn't have anything to lend to others. By being allowed to keep only a small part in reserve - for customers to get back on demand, the balance provides the liquidity to make the system work.
i.e. yes, the cash does really exist - it's not made up or created.
#12
Steve
#13
Its a long one, but a perspective from the emerging economies is interesting. Don't be put off by the accent
Global Imbalance - An imminent Dollar Crisis
Global Imbalance - An imminent Dollar Crisis
#14
Scooby Regular
Join Date: Jul 2002
Location: Under your bonnet
Posts: 9,173
Likes: 0
Received 0 Likes
on
0 Posts
Excellent video deep, glad I stayed up to watch that.
Certainly enlightening and I can see he has his head screwed on correctly!
Some parts were a little difficult to understand mind
Cant you lot learn to speak slower
Certainly enlightening and I can see he has his head screwed on correctly!
Some parts were a little difficult to understand mind
Cant you lot learn to speak slower
#15
Scooby Regular
Join Date: Jul 2002
Location: Under your bonnet
Posts: 9,173
Likes: 0
Received 0 Likes
on
0 Posts
Here's one for bed time reading...
The Real Story - Economic Collapse by Design
I need some kip now!
The Real Story - Economic Collapse by Design
I need some kip now!
#16
The world's finacial system is based on a 300+ year old system of interest bearing debt that was introduced by...The Bank of England. It's flawed, and recent events prove the system is wrong.
It's designed to keep the elite where they are and the rest of us supporting it.
It's designed to keep the elite where they are and the rest of us supporting it.
#17
Its all that chilli mate, it fires us up! I'll watch yours later
Thread
Thread Starter
Forum
Replies
Last Post
MightyArsenal
Wheels, Tyres & Brakes
6
25 September 2015 08:31 PM