Wednesday, September 28, 2011

The Fiat Money Scheme Explained

Everybody, especially those at the bottom of the pyramid, should start buying gold coins now! If you don't have a lot of money, buy a little at a time, and a few times a year. Very good introduction to the concept of fiat money, However, the role of the Federal Reserve is not mentioned here. And while banks do indeed create "money" out of nothing with fractional reserve banking, the Federal Reserve also creates money out of nothing by purchasing interest bearing treasury bonds from the treasury, using federal reserve notes, which it create out of nothing.

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