CREATING MONEY
When we were younger we all thought money was the result of hard work. Our parents and grandparents toiled and took the money earned from all their hard work, and saved it in the local bank. They used the money wisely to buy their homes and save up for a rainy day. But where did the money come from?
Our founding Fathers, in our constitution, gave the right to print and create money to the Federal Government, and they alone have the power to print money. Unfortunately, they have shirked their responsibility and delegated that power, the power to create money to a private bank – The Federal Reserve.
Originally, in the colonies, the state government created the money and loan it out to the banks. They would collect back the principal, and the interest, and use it to pay legitimate public expenses, like to financing infra-structure. When you create money, and loan it the banks, you are creating debt. When the local banks borrowed the new money the colonial banks would print enough money to cover the principal, as well as the interest to be paid back. If You do not put into circulation not only the amount of the loan principal, but the amount of interest to repay the loan as well, there will not be enough money in the economy available to repay the government. Think of it this way, if I loan you $100.00 at 10% interest, there needs to be $110.00 circulating in the economy in order for you to pay me back.
The U S Congress, the American consumer, and the Federal Reserve have together created a debt based society. We all buy cars, houses, and consumer goods with credit cards, and need enough money to pay for these products, as well as the interest to repay the loans. The under lying problem with the credit crunch in today’s economy is that we have 40 Trillion dollars of debt and only 7 trillion dollars with which to pay it back! So the Federal Reserve has started to print massive amounts of money. This will equate to massive inflation down the road.
Understanding the fundamentals of the money supply will help you to prosper in tough economic times. We are Your one stop shop for all your EVERGREEN COLORADO REAL ESTATE and CONIFER COLORADO REAL ESTATE needs. Don’t forget to register for our FREE REAL ESTATE OR MORTGAGE BUYER INCENTIVES. Give us a call at MARK ENGLISH REAL ESTATE and arrange a private, no cost consultation, at 303-674-0148, Email us at markenglishrealestate@msn.com, or visit is on the web at www.EvergreenColoradoLiving.com. Let us show You how to put Your investment dollar to work for You, and how to keep it out of the reach of Congress and the tax man. Don’t forget to register for You FREE BUYER INCENTIVES.
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