Where does money to print money come from?

@thebigk • Oct 27, 2024

Oct 27, 2024

997

The more I learn about the topic of 'money' the more I get convinced that 'Money' system is a 'fraud' by crooks. So just thought of collecting views on this interesting topic. Tell me where does the money to print money come from?

PS: We aren't being funny here 😀.

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Sahithi Pallavi

@sahithi-oJZaYj • Jul 11, 2012

The_Big_K
The more I learn about the topic of 'money' the more I get convinced that 'Money' system is a 'fraud' by crooks. So just thought of collecting views on this interesting topic. Tell me where does the money to print money come from?
PS: We aren't being funny here 😀.
Isn't the printed money used for printing the money? 😕

PS : Any chance of elaborating the question?
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Harshad Italiya

@harshad-ukH5ww • Jul 11, 2012

I second Sada. Confused on Question.

Amount of money to be printed is based on the reserve gold qouta of government. Correct me if I'm wrong.
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Sahithi Pallavi

@sahithi-oJZaYj • Jul 11, 2012

godfather
I second Sada. Confused on Question.
Amount of money to be printed is based on the reserve gold qouta of government. Correct me if I'm wrong.
Is not the #-Link-Snipped-# asking about the money using to print the money come from? Not about the amount I guess. #confused.

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Saandeep Sreerambatla

@saandeep-sreerambatla-hWHU1M • Jul 11, 2012

Interesting topic, I dont know exactly how government decides on the money to be printed. I too want to know the things behind this money.
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Kaustubh Katdare

@thebigk • Jul 11, 2012

For a long time, I've believed that if the Government prints money and keeps a tight control on the prices of the goods; poverty can be eliminated 👍 . But obviously, finance folks laugh at me.
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CE Designer

@ce-designer-BWq0yl • Jul 12, 2012

Is there a limited amount of money in the world or does it grow? I fit does, how does it grow. People say there is a group called the Illuminati that controls all the money in the world. Sorry if im straying off topic here K. Everything started with trading. Then man realized the value of gold and silver. They then started trading gold and silver for other things. Someone then decided that there was a need to control these transactions and that's how money was born. I'm not stating facts here, just my view. Your question reminds of another question. What came first, the chicken or the egg?
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Kaustubh Katdare

@thebigk • Jul 12, 2012

Well, the money supply is an interesting concept and I've been reading a lot about it. Gold and Silver has nothing to do with it.

The whole thing boils down to few mega corporations controlling the world's economy as per their will.
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CE Designer

@ce-designer-BWq0yl • Jul 12, 2012

Did you ever here the price of gold go down?
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Ramani Aswath

@ramani-VR4O43 • Jul 12, 2012

In another post I had mentioned that the reserve bank Mudranalaya is right behind my house in Bangalore. I also said that the chief manufacturing officer was my ex colleague, who was trying to bring down the cost of printing a Rs.1000 note from the current of about Rs.2.50 to about 1.75.
There was also a lighter comment on the labour there going on strike since they wanted to make less money.
Printed money is called a note. Actually it is a Promissory Note. The fine print on every currency note declares that the Reserve Bank Governor promises to pay the bearer on demand the sum of the face value of the note.
The Reserve Bank should print only that much money that can be covered by its assets. If all of us rushed to the RBI demanding honouring of all the promissory note India will have to declare insolvency.
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Kaustubh Katdare

@thebigk • Jul 12, 2012
That's another good point I wish to understand: THe Promissory Note. The Governer Promises to pay amount "X" to the bearer. Now there are two questions -
1. How & how does the reserve bank pay me?
2. Where did the reserve bank get the money; did they create it out of thin air?
3. What are reserve bank's assets and how are the assets valued?
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Ramani Aswath

@ramani-VR4O43 • Jul 12, 2012

A real story: (storytelling is a hazard of old age)
The Rothchild family in England was knighted by Queen Victoria in the 1880s. This family started private banking business. Nathan Mayer Rothschild used to issue personal checks (not on Bank of England, which was the government bank), which were honoured unquestioned. Once the Bank of England refused a personal check of Nathan. The main office of the Bank of England was (still is) in Thread Needle Street in London. The next morning there was a huge queue of people with Nathan himself at the head, each with a bulging portmanteau (Victorian briefcase) waiting for the gates to open.
As soon as the portals opened, every payout counter was occupied by a serpentine queue. Nathan proffered to the cashier a Five pound note and demanded to be paid money. The cashier gave him gold equivalent to five pounds. Nathan promptly gave annother note and asked payment. He then showed the cashier that he had a huge supply of the five pound notes, which he was going to return. He also told that all the other queues were occupied by his employees all with piles of five pound notes, for which they would be demanding payment. He was prepared to tie up the bank for months. He told the bank that since the B O E did not believe his promissory note, he was not going to believe B O E's notes either.
The story in Reader's Digest ended with:'The Old Lady of Threadneedle Street (that was how BOE was called) surrendered with a few more grey hairs on her head'.

The burden of this is that the promissory note must have suficient specie (gold and silver) in the issuing bank (in India, the Reserve Bank of India) to back up in case there is a demand. Otherwise the paper money is worthless and leads to inflationary pressures on the economy to the extent excess was printed.
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Kaustubh Katdare

@thebigk • Jul 12, 2012

Ron Paul's 'End The Fed' is also very interesting.

The simple logic is this: If many discovered money - we can never run out of it.
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Ramani Aswath

@ramani-VR4O43 • Jul 12, 2012

<a href="https://www.forbes.com/sites/steveforbes/2012/06/06/golden-rule-for-prosperity/" target="_blank" rel="nofollow noopener noreferrer">Golden Rule for Prosperity</a>

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Kaustubh Katdare

@thebigk • Jul 12, 2012

bioramani
<a href="https://www.forbes.com/sites/steveforbes/2012/06/06/golden-rule-for-prosperity/" target="_blank" rel="noopener noreferrer">Golden Rule for Prosperity</a>
Yeah! Interesting article! Makes me wonder whether we had the wisest people on Earth who had already adopted Gold as a medium of exchange.

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