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Thread: New to money and banking...with some questions.

  1. #1
    Junior Member
    Join Date
    Jan 2014

    Wink New to money and banking...with some questions.

    Hi everyone,

    Now, i'm fairly new to money and banking in general, much like 99.9% of consumers, but lately i've taken an interest in understanding what money truly is and where it comes from. I have a bunch of questions, but i'll just ask a few. I really hope some of you knowledgeable members will be kind enough to help me out on this.

    Here is what i've gathered so far. Please tell me if i'm wrong.

    All money is debt, and all debt is money, since all money is created, then loaned to the Government by the Federal Reserve to be injected into our economy. When that money is loaned to the Government by the Federal Reserve, it is loaned, of course, with interest.

    Now, if all money in circulation has been loaned to the Government with interest, then how could the government ever escape debt? Isn't it illogical?

    Also, I would imagine this is precisely what Federal Taxes are used for? Essentially to pay back the growing interest to the Federal Reserve shareholders from the loan given to our Government?

    And, if John Doe goes to his bank and takes out a loan, he would of course be paying interest on that loan to his bank... BUT, wouldn't he also, without his knowing, already be paying interest on that same money to the FED through Federal Taxes?

    If someone on here could clarify some of this, it would be great!

    Thank you!

  2. #2
    Junior Member
    Join Date
    Mar 2014
    My company is also new to the baking industry. I work with a Binary Options company that trades stocks, commodities and currencies.

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