The Maier Files | How to create money out of thin air
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How to create money out of thin air

Create money out of thin air

How to create money out of thin air

Create money out of thin air

Alchemy = A seemingly magical process of transformation, creation …
“modern money is known as ‘fiat money’, it is artificially created, has no value in itself and the basis in its use for exchange is typically a government edict.” — When money is deposited in to a bank (let’s assume 100€), the bank sets aside 10% of it as reserves. The remaining 90€ can now be lent out. What happens from here is magic money creation, it really is amazing. When this 90€ gets lent out, the person who is borrowing it signs a contract to promise to repay the debt. This promise then becomes an asset. So the 90€ that hasn’t been repaid yet can be written down as being an asset so it can then be used to create more money. Again 10% is set aside as reserves (9€), which leaves 81€ to be lent out. Then again the promise to repay this 81€ becomes an asset which can be used. So 10% is set aside for reserves then the remainder is lent out, and so on. All of this money is created from the original 100€ deposit. None of it actually existed, it was created by the bank and written into existence. The money was created from a debt. This is important to understand because it means that every note and coin you own is actually a debt that somebody owes to somebody else. Money has no value because it can be created and there is NO LIMIT to how much can be created. More on fiat money in this excellent article: Why fiat money seemingly does work: http://www.zerohedge.com/news/2015-02-21/why-does-fiat-money-seemingly-work