Saturday, March 15, 2014

HOW MONEY IS MADE in a Modern World & Look Inside Bank of England GOLD VAULT




In this new video you can learn how commercial banks can create money through the accounting process they use when they make loans, how banks make payments between each other using specially created central bank money, if the Bank of England really can control how much money is in the economy ...and more.

How is money made?

The ways in which money has been made, and the materials used to make it, are an important part of the history of money. Making coins, paper money and plastic cards involves complex processes, different in each case.

In economics, money creation is the process by which the money supply of a country or a monetary region (such as the Eurozone) is increased. A central bank may introduce new money into the economy (termed 'expansionary monetary policy') by purchasing financial assets or lending money to financial institutions. Commercial bank lending then multiplies this base money through fractional reserve banking, which expands the total of broad money (cash plus demand deposits).

Quantitative easing involves the creation of a significant amount of new base money by a central bank by the buying of assets that it usually does not buy. Usually, a central bank will conduct open market operations by buying short-term government bonds or foreign currency. However, during a financial crisis, the central bank may buy other types of financial assets as well. The central bank may buy long-term government bonds, company bonds, asset backed securities, stocks, or even extend commercial loans. The intent is to stimulate the economy by increasing liquidity and promoting bank lending, even when interest rates cannot be pushed any lower.

Singapore will regulate virtual-currency intermediaries including operators of Bitcoin exchanges and vending machines to address potential money-laundering and terrorist-financing risks.

Digital currencies have come under scrutiny in markets from China to Russia and the U.S., with some regulators calling for bans or limits on their use. Charlie Shrem, the founder of exchange company BitInstant, was charged in Manhattan two months ago with conspiring to launder $1 million of Bitcoins.

Congressman Ron Paul warned that if the US continues on its current course, the dollar will collapse, and gold will literally be priceless. "Eventually, if we're not careful, it will go to infinity, because the dollar will collapse totally," Paul said on
 What the people of Ukraine are being put through is absolutely horrible. They are caught in the middle of a massive tug of war between the East and the West, and they are paying a great price for it. Ultimately, Ukraine will end up either being dominated by Russia (a bad outcome) or by the EU and the United States (another bad outcome).

China just dropped an absolute bombshell, but it was almost entirely ignored by the mainstream media in the United States. The central bank of China has decided that it is "no longer in China's favor to accumulate foreign-exchange reserves". During the third quarter of 2013, China's foreign-exchange reserves were valued at approximately $3.66 trillion.

A young American woman who ran the First Meta bitcoin exchange was found dead in her Singapore apartment last week. Police are investigating the "unnatural death".

Autumn Radtke was found on the morning of February 26 after Police received an emergency call from an apartment building. She was pronounced dead at the scene. A preliminary police investigation has ruled out foul play, but neighbors told police they suspected Radtke jumped from an apartment.

No comments:

Post a Comment