How is money brought into circulation ????

[DomainManagement]

i am going to sound really daft now ( which is not unusual for me )

as this i think this the the root of all the problems

who charges who for the creation of money ?

and how is it created and brought into the government balance sheets

Is the proccess transparent ? ( i dont think so) who owns the bank of England

Are the share holders names made public or are the covered by some secret

Act , beneficial owners must be reported in companies how come not so

When the bank of England is involved,

They say follow the money ,and you get your answers

Does anybody really know how much the state gets charged

Or does it go straight in as a loan that attract`s interest , that is paid by

tax payers hmmmm and if so why

if the government was allowed to print its own money then the country would

be in a much more healthy state and better still with no interest to pay

So does anyone know the real numbers of what we get charged

i think Queenie get a nice cut after all she does endorse it

so instead of becks getting lets say £5 million for endorsing nike or whatever

i wonder what the queen is paid to front the £ i bet there is a fee somewhere

well lets see what answers we get

[mat]

You should read up on the petrodollar.

Basicly showing how America try and keep all the world oil traded in dollars as not only are they printing off their own money to pay for it, but the oil owners bank their dollars in the American system...

Infact the oil owners in most cases would make more money by trading in Euros. Saddam was going to or did do this and look how that ended up

If oil was traded in euros America would have to trade to get the euros to buy the oil...

[GreyWing]

America are screwed if it ever happens, but thing is it can't happen. Even China don't want to see it happen as 80%+ of their reserves are in Dollars.

It will happen eventually though, America will be as poor as some failed African state when it does, in fact looking at their national debt, they are already there.

Agreed Mat, that was Saddam's big mistake. I heard Iran were thinking of doing it aswell

[accelerator]

I was going to try and answer your questions but there are quite a few and it's late, so how about buying some books on the subject. Some economics text books and those on the Bank of England should give you some insight, e.g.:

http://www.amazon.co.uk/Bank-England...1678136&sr=8-8

Rgds

[Sean]

It used to be linked to gold but I think it was Nixon in the 70's who scrapped the gold standard for the Americans and they now basically print money as and when they need it backing it up with government bonds. That's exactly what quantitive easing is, printing money we don't have but we don't have the luxury of things like oil etc.. being traded in Dollars.

The problem's are out there though, the Chinese own a LOT of Dollars and they're shit scared of the Americans devaluing their currency which would effectively wipe off Trillions of Dollars of debt. The Chinese are buying up mines, quarries etc.. using US Dollars just to get rid of them. For us, the risk of printing money we don't have is that it risks the devaluation of Sterling and as a consequence you create hyper-inflation which then starts to get pretty deep (see Weimar Republic on Wikipedia)

[mat]

Yes, Money used to be backed up by gold but that got scrapped.

Money was always ment to be "IOU", you were basicly saying IOU x amount of gold. Now its just a over printed piece of paper...

Gold and Silver was also actualy used in coin currency to add real value to the IOU and trading process but that no longer happens. It was pretty much a universal currency through trading ships and travellers as it was backed up by its scrap value.

[Sean]

GW, a lot of people think the Americans would be in the shit but that's not true, they hold the single largest gold reserves and have an economy that is pretty much self sufficient. The fear of the Chinese and Indians etc.. is that America close their doors and put massive tariffs on or even ban foreign goods. That would pretty much sink the emerging economies.

[DomainManagement]

matt have you ever taken a luck at worldreports.org

poor guy was poisoned by the looney toones in the states

and yes your right re petrodollars

is that why they hate iraq as it likes to trade in euro`s

and also north Korea too wont allow the dollar in use there

and hated it so much they forged the super dollar

money is the weapon of mass destruction these days

[GreyWing]

Someone was telling me that the Irish bailout was to devalue the Euro, if that doesn't work they are going to bailout Portugal to devalue it some more. So they can be competitive, they don't need the cash just yet but using them as an excuse.

Someone posted a realy good thread on here a while back about how banks print more according to the cash they hold, basically how banks started to lend, it was a cartoon kind of thing. Don't know if anyone can find it but it was interesting to watch.

[mat]

I have been buying gold and silver bullion bars/coins for the very reason that its value is so strong now that world currency is in turmoil. Gold has gone from about $800 an ounce to $1400 an ounce in a few years. Silver is a very wise investment right now and rather cheap compared to gold!

America are shifting record amounts of their $1 silver eagle coins at the moment, which shows how people are moving to precious metals over standard currency at the moment.