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| Thread ID: 135049 | 2013-09-19 02:04:00 | The Fed. Who owns it. | Cicero (40) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 1353862 | 2013-09-20 04:46:00 | How the Fed really works: A tourist stops in town wanting to stay the night. At the Hotel, he asks for the room, but says he needs to look it over before finally deciding. He and the hotel proprietor agree to a $100 bond against any damage or theft the tourist may effect while inspecting the room. The hotel proprietor takes the 100 dollar bill and runs to pay his debt to the butcher. The butcher takes the 100 dollar bill, and runs to pay his debt to the hog farmer. The hog farmer takes the 100 dollar bill, and runs to pay his debt to the supplier of his feed and fuel. The supplier of feed and fuel takes the 100 dollar bill and runs to pay his debt to the town's prostitute that in these hard times, gave her "services" on credit. The prostitute runs to the hotel, and pays off her debt with the 100 dollar bill to the hotel proprietor to pay for the rooms that she rented when she brought her clients there. The hotel proprietor then lays the 100 dollar bill back on the counter so that the rich tourist will not suspect anything. At that moment, the rich tourist comes down after inspecting the rooms, and takes his 100 dollar bill, after saying that he did not like any of the rooms, and leaves town. No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism. And that, ladies and gentlemen, is how the United States government is doing business today. :D Seriously, this is part of the function of the Fed, to keep the $$$ in circulation, largely achieving this through the system of "correspondent banks". :2cents: |
WalOne (4202) | ||
| 1353863 | 2013-09-20 06:50:00 | en.wikipedia.org Explains it all Cicero, if you wade through it. A different beast entirely from our Reserve Bank system. Consider that 97 % of the wealth of USA is in the hands of 1%, that has to be given a bit of thought. Quite right Dick. Unlike the United States Federal Reserve, the Reserve Bank does not have elements of private ownership; according to its website, "The Reserve Bank does not have shareholders. It is 100% 'owned' by the New Zealand Government, with any extra revenue that the Reserve Bank makes going back into the Crown accounts. The Central Bank is not a government department, but is a body corporate whose finances are included in the Crown accounts." |
Cicero (40) | ||
| 1353864 | 2013-09-20 07:56:00 | yes Wal - but you neglected to factor in the taxes generated each time the hundred dollars was used to pay the debt - so by the end of your example, even tho the hundred is still in use, it probably generated another hundred owed to the tax department! lol | bevy121 (117) | ||
| 1353865 | 2013-09-20 08:06:00 | The average Amercian earns less than they did in 1999. That would about the same here .. |
paulw (1826) | ||
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