Hi Darts,
As I have come to understand it, -
* it's just printed out of nowhere by the Reserve Bank -
* then sold to the Government of the day who purchase it by issuing Government Bonds (which are simply promises to pay back the 'money' at a set date) -
* which in effect means the Government has gone into debt which will have to be paid ... but the Government doesn't produce anything at all that makes money and so -
* the Government will gather together the money it needs for the debt by getting the money from those (individuals or businesses) who do make money - by raising taxes/tolls/tariffs et al.
It all seems 'normal and legal' until the people (who end up paying) come to realise the printed 'money' has no value - except on paper.
Then they will start to look for things that Do have real value and eventually will totally refuse to use/pay for the 'paper'.
just my opinion, important only to me.
dub
- Forums
- Economics
- Where the money come from?
Where the money come from?, page-5
-
- There are more pages in this discussion • 135 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
JBY
JAMES BAY MINERALS LIMITED
Andrew Dornan, Executive Director
Andrew Dornan
Executive Director
SPONSORED BY The Market Online