Are we operating a flawed monetary system?

[I want a GTI]

Im not sure where exactly to ask this, but you lot seem like an intelligent bunch, so I shall ask it here.First off, Im no Economist or anything of the sort. Im just an ordinary teen that enjoys researching the zionist Rothschild and how they have manipulated us all into having perceptions of the value of money(in todays format) and the establishment of the first US central bank. So please do forgive me, if I say something stupid.

The net worth of hard value commodities is nothing compared to the money currently in circulation. For the life of me, I cannot understand how we can print money without any reserve. Basically 80% of all money in circulation, should be worth the paper it was printed on.

Also, the central bank prints money...then lends money at the repo rate. So for every dollar printed, a dollar plus 6%(south african repo rate) has to be repaid, but since the federal reserve is the only issuing house, where is the 6% of money going to come from to repay to the central bank? Well from the central bank ofcourse. More money being issued to pay the interest on the initial issue. So basically, this Rothschild system creates a vicious cycle in which the central bank has to perpetually increase the money supply. This means that the populous will be in perennial debt to the central bank? The Quran and, if im not mistaken, the Torah warns against usury!

Hopefully, an economist on here can clear these points up for me, and tell me where I have gone wrong. At the moment, it just looks like a flawed system, invented to enslave people.

[boramk]

http://mybroadband.co.za/vb/showthread.php/193972-Zetgeist-Bullcrap?p=3175758&viewfull=1#post3175758

[alloytoo]

Im not sure where exactly to ask this, but you lot seem like an intelligent bunch, so I shall ask it here.First off, Im no Economist or anything of the sort. Im just an ordinary teen that enjoys researching the zionist Rothschild and how they have manipulated us all into having perceptions of the value of money(in todays format) and the establishment of the first US central bank. So please do forgive me, if I say something stupid.

You're forgiven.



The net worth of hard value commodities is nothing compared to the money currently in circulation. For the life of me, I cannot understand how we can print money without any reserve. Basically 80% of all money in circulation, should be worth the paper it was printed on.


Because the value of any given currency is a reflection of the underlying goods, plants and services in an economy. This means it's subject to the laws of supply and demand.

If the money supply increases faster than the goods and services then inflation results (See Bob Mugabe for details), conversely deflation results if the money supply decreases, or fails to keep pace with economic growth.

Deflation can have disasterous effects (See 1930's depression for details.)
You typically witness isolated deflation when speculation bubbles burst. The comicbook speculation bubble of the 90's and the recent global property bubble to site two examples.




Also, the central bank prints money...then lends money at the repo rate. So for every dollar printed, a dollar plus 6%(south african repo rate) has to be repaid, but since the federal reserve is the only issuing house, where is the 6% of money going to come from to repay to the central bank? Well from the central bank ofcourse. More money being issued to pay the interest on the initial issue. So basically, this Rothschild system creates a vicious cycle in which the central bank has to perpetually increase the money supply. This means that the populous will be in perennial debt to the central bank? The Quran and, if im not mistaken, the Torah warns against usury!

One hopes this isn't a misguided assault on interest.

Interest is rental on money.

If you borrowed my lawnmower and mowed all the lawns in the neighbourhood for a fee, I would expect a portion of fee in respect of the use of my asset, and to cover my wear and tear.

Likewise if you borrowed money and used it to buy stock for resale, I would expect a portion of the profit in respect of the use of my money. That's how Islamic banking works, businesses pay the bank a portion of their profit. Conventional banking works in exactly the same way, only the portion of profit related to money lent is called interest.

Interest is also often called the "Time value of money". As someone who collected debt from a variety of customers for ten years I can assure you that our Muslim customers understood the time value of money only too well.

[Chicken Boo]

oh dear. Seems you've prematurely arrived at the adult truth most adults never really reach... money is a mass delusion. But we don't have anything better, so we go with it.

[Freshy-ZN]

Go to youtube and search for an animated series called "Money as Debt"