Where does money come from?

sabretoothtigger

vendetta4v

Masomnia wrote: »

This positive money seems to be the new 'money as debt'. That Canadian chap with the the soothing voice must be crying into his maple syrup.

Both Money as debt (Paul Grignon) and Positive money are actually plagiarists (which is bad in itself if only they were able to/want to comprehend the main problem, which they don't/won't/can't).

Pillion wrote: »

Money is created when someone borrows.

I would agree with that. Who is borrowing? And are the folks borrowing, need to pay back more then they borrowed? Like if you borrow 100 pounds how much do you owe?

Reweird wrote: »

Money is created at the point of exchange of products or services.

Yes I would agree with you on that one. In other words Money is created to represent our industry and commerce.

I would leave you with a quote:

"currency : money, usually intended to be tokens of wealth. In a monetary system subject to interest/usury, it is impossible for currency to represent wealth, because it is necessary perpetually to maintain a circulation in order to service obligations or principal and interest exceeding the circulation (at most, principal), and because as a circulation is maintained necessarily by re-borrowing payments against principal and interest obligations, the sum of debt perpetually increases so much as periodic interest on the increasing sum of debt; and thus ever more of the circulation is inherently dedicated to servicing debt, versus representing the wealth or sustaining the commerce which is compelled to service the multiplying sum of debt." - Mike Montagne

wotsthat

Thought provoking stuff. I think I'm going to buy some silver (none of that paper rubbish either).

nicko33

Money is brilliant. Invest in some today.

vendetta4v

wotsthat wrote: »

Thought provoking stuff. I think I'm going to buy some silver (none of that paper rubbish either).

I would advise against that. Unless you are comfortable with earning on other peoples misery. I fell for the precious metals crap myself.
This notion of sound money that needs to be backed by something is false.

The problem is not with the fact that our money is not backed up by something and is simply getting printed.

The problem is something else. Who wants to guess...

purch

The problem is something else. Who wants to guess..

What an arrogant !!!!!! !!!!

Get-real-buy-real

vendetta4v wrote: »

Hi folks

Here is a simple question Where does money come from?
And how does the global monetary system works?
Who prints they money?
What are the condition under which we get access to money, currency, notes etc...

Hint: Central banks

Would like to hear your thoughts.

What is interesting is that since the GFC and with the advent of the internet more and more common folks are asking questions like this. Where in the past the common man was not educated in such matters.

First of all you have to understand the difference between currency and money, most people are confused and think the currency we use today is money but this is incorrect.

When talking about the difference between money and currency, lots of things have been used as curency shells £10 notes, but they are only currency and all currencies have a 100% certainty to go to nothing in history. Gold and silver are money and can never go to nothing, so I would say that makes them have inherant value.

Mike Maloney says our true wealth is measured in our time and labor, but governments are able to get some of that time and labor by cranking out paper currency. He discusses the difference between currency and money. Currencies must be: a medium of exchange, a unit of account, portable, divisible, durable, and fungible. Money must be all those qualities plus be a store of value over time.

http://www.bullsource.com/why-gold-silver-cash-is-trash/

Silver is getting very very rare and because its only naturally found near the Earths crust, minable silver is getting depleted.

Gold is in abudance if you go deeper there is more of it. There is also a lot more gold in stockpiles on Earth because it does not get consumed like silver does.

geoffgeofftygeoff

vendetta4v wrote: »

The problem is something else. Who wants to guess...

I can say for sure that I don't want to guess.

sabretoothtigger

The problem is something else. Who wants to guess

Money is linked to trade of a country and the main demand for payment in that currency so often its government and taxes that validate a currency primarily.
But if nobody needs to pay a bill in that currency its a problem as you have a product without demand.
The value would plummet

USA has the reverse in that lots of things are traded in dollars so even though its not their own trade its a currency in great demand. We should make sure not to mess up our LSE and other global trade done here as its probably supporting us more then we know

dealer_wins

Trees of course!!!!