Is FED's money-making from nothing a real reason for inflation?

no the fed doesn't create money. banks create money when they loan to you.

I'm not aware of this "FED" you speak of.

No faggots like you will either start lifting so you can carry your gold or you'll fucking starve.

Not quite.

The Fed creates USD out of nothing when it buys government bonds (through investment banking middlemen, e.g. Goldman Sachs). In fact about 97% of USD only exists electronically as entries on bank's ledgers.

The government has to pay interest on these bonds. Since the Fed has a monopoly on the creation of USD, the only way to keep up repayments is to borrow more. There is no other way of creating new USD. Since every dollar which enters existance must be repaid on the principle + interest, it is impossible for the US government to repay its national debt.

Retail and commercial bank then loan out that USD in the form of credit - but the catch is the banks typically only hold about 10% of USD in reserves. Most customers do not want to withdraw their deposits all at once so they can get away with this. This inflates the monetary supply a futher 10x.

The system is a ponzi and scam, and it is impossible for it to last forever.

Washington: The Fed and the US treasury

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now that these bankers are so powerful is it really possible for btc or other any shitcoin to ever rise to the value of for example gold?

I doublt it, they rather just stop hiding their agenda and just put a bullet in our heads

again banks create money not the fed. the fed just buys or sells treasuries to alter the circulating money supply you can think of it as a buffer.

>is it really possible for btc or other any shitcoin to ever rise to the value of for example gold?
well btc is 3 times as much as gold in the fucking bottom.

The FED and FED only creates USD - M0 money in economic theory.

The banks create 10x more credit than they have in reserves.

If the banks create "money" and not credit, why does the system collaplse when every customer tries to withdraw their deposits at once? A bank run occurs.

Read up on the tiers of the money: M0, M1, M2, M3

m0 is fucking nothing

The Fed does control the money supply primarily through the purchase of government bonds, but there's no inherent limitation that would prevent them from using other securities for this purpose. Combine that with the fact that the Fed remits profits back to the government and the profit gained from selling cash and coin (banks pay $100 for a hundred dollar bill but it only costs like 12 cents to make), and the government could in fact pay off the national debt if it so chose.

Technically the Treasury does as well, though with advisement from the Fed. You might remember debates around a trillion dollar coin a while back.

>the government could in fact pay off the national debt if it so chose

I'm sorry, this is just false. I'm not going to call you a retard, out of politeness.

Declaring it to be false does not make it so. If the government cut spending / increased revenue such that it had a budget surplus and it maintained that surplus for a sufficient amount of time then it could pay off the national debt.

I can't wait for it to collapse.

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The only reason the US have never suffer hyperinflation is thanks to the FED. Ask any other country how well the government managed the currency. The FED have an economic incentive to keep the dollar alive and to conquer the world exporting inflation while making the US the biggest empire ever. Show some gratitude, goy.

law.cornell.edu/uscode/text/12/411

You guys do know you can redeem your Federal Reserve Notes for lawful money when you deposit it to a bank, and by doing so you both 1. erase a part of the National debt and 2. no longer have to pay income taxes at all.

But you guys heads are too far up your asses to understand what I'm saying, so good luck!

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You can, but since Federal Reserve Notes are lawful money you'll just get other Federal Reserve Notes. People have tried this and that's what happens.

>no longer have to pay income taxes at all.
ayy lmao, didn't even read this part

It is mathematically impossible to pay the off all the debt. Dollars are created in the form of DEBT/CREDIT (the same thing). Every dollar the government borrows from the Fed must be repaid in the form of principal + INTEREST.

WHERE DOES THAT INTEREST EXIST IN THE MONETARY SUPPLY WHEN DOLLARS CAN ONLY BE CREATED BY BORROWING FROM THE FED WITH INTEREST PAYMENTS DUE?

You can mine more gold, but you cannot mine more federal reserve notes. The only way to repay is by BORROWING MORE AT INTEREST since the Fed has a complete monopoly on the supply of dollars.

This is USURY.
Yes, it's a subtle slight of hand and ingenious. The central bankers have fooled almost everyone one!

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doesnt matter, you simply write it on the back of your paychecks when you deposit money and make a copy of both sides with the endorsement for this law, and you no longer have to pay taxes. they dont give "lawful treasury notes" anymore and theyre completely out of circulation

But also you can't earn interest on this type of deposited money. So keep that in mind. After 1 year you can check the box in your w9 that says youre completely exempt from all income tax and cite the statute

I already addressed the mistake you made in my earlier comment: there is no inherent limitation that compels the Fed to use Treasury debt securities to control the money supply. If the U.S. government started aggressively repaying its debt to the point where that market started getting shallower, the Fed would naturally look to alternatives.

you can pay off the debt, we as citizens have the power to do so by using this law.cornell.edu/uscode/text/12/411

but again, ehad up the ass etc. American citizens are just as guilty for wanting to get their 0.0000002% "interest"

kek, go for it and see how that works for you

people have been doing it for years. its literally in the constitution

Alright, I'll play along. Give citations.

All anyone needs to understand about the FED are the following:

1. It is not owned by the US government
2. It creates the money supply requested by the US Gov and loans it to the US Gov AT INTEREST
3. Because the money is being charged AT INTEREST, the US Gov must borrow more to pay the interest on previous borrowings.

4. So, if you take all of the money currently in circulation that the Fed has created, it is not enough to pay for the loan because of the interest. The money to pay the interest has literally not been created yet and when it is created it will also have interest on it.

The FED creates a vicious cycle of perpetual indebtedness because by its own terms there is not enough in circulation to pay the debts caused by interest. It also implicitly encourages consumption and expansion for the sake of "growth" rather than true added value. END THE FED.

>1. It is not owned by the US government
The Fed is a system with both public and private elements. The Fed as a whole isn't "owned" by anyone.
>2. It creates the money supply requested by the US Gov and loans it to the US Gov AT INTEREST
False. The Fed creates the money supply to meet its mandate, which is intentional separate from government requests. The Fed is also prohibited from buying government debt directly from the government, instead purchasing debt on the secondary market.
>3. Because the money is being charged AT INTEREST, the US Gov must borrow more to pay the interest on previous borrowings.
Or, you know, lower expenses / raise revenue.

what happens if the fed gets ended? another paper currency will take its place. it would be smarter to regulate the control, add more profit businesses that are guaranteed returns, recover assets from stolen funds and implement new models.

the money system stayed alive this long because its good. the only bad part was the people in control which got dealt with. everyone whos hating on the fed hasnt researched it hard enough

>there is no inherent limitation that compels the Fed to use Treasury debt securities to control the money supply.

That is the only way dollars (Federal Reseve Notes) enter the monetary supply my friend. PLUS WHEN THEY ENTER THE SUPPLY, THERE ARE INTEREST PAYMENTS DUE WHICH MAKES IT IMPOSSIBLE TO REPAY THE DEBT + INTEREST WITHOUT BORRING MORE FROM THE FED. YOU CANNOT MINE FEDERAL RESERVE NOTES. YOU CAN ONLY BORROW THEM AND BE LIABLE FOR INTEREST REPAYMENTS.

And endlesss spiral of debt, ever wonder why your coutnry is $20 trillion in debt?

>That is the only way dollars (Federal Reseve Notes) enter the monetary supply my friend.
That is not the only way dollars have to enter the monetary supply my friend. They use federal debt securities because of the sheer size of the market. If that market began to shrink because the government was repaying the debt, they would seek alternative markets.
>ever wonder why your coutnry is $20 trillion in debt?
Because of politics. Everyone wants to fund their pet project but no one wants to raise taxes to pay for it, thus a deficit.

>govt megashill

If the goal is get to zero debt, it is literally not achievable in the current system. The FED must be paid in the fiat that it creates which is charged at interest. Lowering expenses, while should be done regardless, will never get us to point of ending the debt to the FED in this rigged system.

>The Fed is a system with both public and private elements. The Fed as a whole isn't "owned" by anyone.

Idiot, the FED has never been audited and will never permit itself to be. The owners of the FED are other nations, private banks, and super wealthy elite. It is owned and it is not by the American people.

Sorry man, but you are factually wrong on multiple levels. The Fed is routinely audited and the owners of the regional federal reserve banks are well known (they are the member banks who are required by law to own shares in their regional bank).

P.S. Fed is not an acronym.

Congress needs to reassert its constitutional mandate to control the purse. Ceding this right over to a private institution is the worst thing that has been perpetuated on society.

Congress needs no outside authority to grant it the right to make its own money, let alone rob it with usury.

So... you want the guys who can't even handle fiscal policy to be handling monetary policy as well? There's a reason Congress created the Fed in the first place.

Are you Jewish?

I'm 100% serious here.

No. Are you unable to see why the body that can't even keep the government from shutting down would cause problems if it were running monetary policy?

>P.S. Fed is not an acronym

Feel free to read my caps as a high decibel, hostile shout to penetrate your dense skull.

The FED has never undergone a real audit and it was THE central tenant of the Paul platform.

It is not mathematically possible to pay the existing debt owed to the FED because of the interest charged on the debt. KYS you filthy statist bootlicker.

Nope
They will turn to state crypto. You'll get to see dystopian future come reality, what a time to be alive

>a real audit
So I guess having its books regularly audited is just a series of fake audits then.
>the Paul platform
Unsurprisingly, the Audit the Fed bill was misleadingly named. It's true goal was obviously to reduce Fed independence by subjecting it to more oversight, which goes against the entire purpose of having the Fed.

youtube.com/watch?v=WVxWPkMXOmw

Get edumucated, goyim

This is the only info anyone needs.

But there's more. Short and sweet, best to watch it 2-3 times to understand it.

youtube.com/watch?v=rTYogN7pQ4M

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>Since 1694
no

Yes take your advice from (((((Rothschild))))).

Wtf are you govt bootlickers doing here? Isnt there an opressed blackman you should be blowing right now?