What Makes It MONEY?

There are Hobbyists and Providers on this board who have a sophisticated understqanding of money and the mechanics of high-end finance. I do not. Please chime in on what follow3s.

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What Is Money?

In the past twenty years have seen a major increase in the amount of money owed by the US government as the national debt. In the 1990s it looked as hough the national debt, much smaller then than it is now, might in fact be retired in the near future. But that was not to be. A trillion at a time, over the next three presidential administrations, the national debt has grown to over 27 trillion dollars. While twenty-seven is not a large number, a trillion is a thousand billions. Each trillion is a very large number.

Borrowing from foreign creditors has played a major roll in this growth of debt, but during, or following, the economic collapse of 2008 another method was invented, "Qualitative Easing". My understanding of QE is that the US Treasury issues bonds and the Federal Reserve buys them with money issued by the "Fed". This seems to be just a bookkeeping transaction, but the money did find its way into the stock markets. All indexes have exploded into historically unheard of highs.

So, where does this money come from? I am financially naïve: It appears to me to have been invented from nothing. What makes it money? How does the Treasury Department know it is actually getting money?

History is replete with examples of nations and kingdoms debasing the value of their money prior to a collapse. A recurring theme of good government has been strong efforts to fight counterfeiting. Why is that? The theory as I understand it is that counterfeiting inflates the supply of money in public hands and actually lowers the value of the currency. this drives prices of commodities up. Runaway inflation is devastation to any society.

So the Fed doesn't even print money, they just say they have given it to the Treasury Department. What is to keep someone much smarter than me from doing a similar thing? Why can't someone work out a scheme (illegal of course) with a mythical Prince-Of-Nigeria to make a wire transfer of money from the national bank of Nigeria . . .or Swaziland . . .to an account here in the USA? How would a bank here know if it is REAL money?

Money is a medium used to keep trade balanced, debt is recorded world wide in USA Dollars, This basically makes the USA the Monopoly Banker, As the banker we are able to create money as needed to run our economy and everyone else follows us.

If the World's debt were to ever change from USA Dollars to anything else, we could repay our debt instantly without ever making a payment, the strength of our economy world wide is unmatched by any other country, we can isolate, stop trade, make our currency worth more than any Country and use less of it to pay off our debts.

As world leader we control all debts and they are mostly irrelevant, its more of a scheme to take over other Countries when they go bankrupt. The USA will have an empire larger than the Romans in due time and with the right leadership in the future, will stretch from our current Country to France to China.

The amount of World currency is recorded as 277 Trillion, The USA has 55 Trillion in printed money. The Rothschild's have the records of all liquid assets, you just compare their records with what a country says they have. World Currency is mostly calculated by each Countries holding of physical gold. When Crete and Greece went bankrupt, they were forced to sell their gold in return for EU Debts, written by the World bank.

Money is a medium used to keep trade balanced, debt is recorded world wide in USA Dollars, This basically makes the USA the Monopoly Banker, As the banker we are able to create money as needed to run our economy and everyone else follows us.

If the World's debt were to ever change from USA Dollars to anything else, we could repay our debt instantly without ever making a payment, the strength of our economy world wide is unmatched by any other country, we can isolate, stop trade, make our currency worth more than any Country and use less of it to pay off our debts.

As world leader we control all debts and they are mostly irrelevant, its more of a scheme to take over other Countries when they go bankrupt. The USA will have an empire larger than the Romans in due time and with the right leadership in the future, will stretch from our current Country to France to China.

The amount of World currency is recorded as 277 Trillion, The USA has 55 Trillion in printed money. The Rothschild's have the records of all liquid assets, you just compare their records with what a country says they have. World Currency is mostly calculated by each Countries holding of physical gold. When Crete and Greece went bankrupt, they were forced to sell their gold in return for EU Debts, written by the World bank. Originally Posted by bf0082

It is my firm belief that China will be saying that in the very near future. The supply chains that China now dominates, can bring any country including ours, to their knees. Of course that wouldn't be very productive so they don't, yet.


I believe the US is in decline and 2021 will be recorded in history, as the year it started to really accelerate in decline with China holding all the cards if we and our allies don't put a stop to them right now.

It is my firm belief that China will be saying that in the very near future. Originally Posted by HedonistForever

might want to google where China gets their petroleum from, we are a net exporting country of oil, China buys our oil because it is easier to refine.

We really do hold all the cards in the world economy. natural resources is what is key to wealth, and we have everything in the USA. The biggest in demand rare earths are in Afghanistan, which is why we are there to bring in a democracy, we want the 5 trillion in rare earths to manufacture batteries.

The great depression was caused by over producing and low consumption. the assembly line manufacturing created so many goods they couldn't be sold fast enough, companies got more efficient and didnt need as much labor, reducing the number of consumers.... you think China has the consumers to keep buying their junk, no way... we stop buying chinese goods and their economy tanks instantly.

might want to google where China gets their petroleum from, we are a net exporting country of oil, China buys our oil because it is easier to refine.

We really do hold all the cards in the world economy. natural resources is what is key to wealth, and we have everything in the USA. The biggest in demand rare earths are in Afghanistan, which is why we are there to bring in a democracy, we want the 5 trillion in rare earths to manufacture batteries.

The great depression was caused by over producing and low consumption. the assembly line manufacturing created so many goods they couldn't be sold fast enough, companies got more efficient and didnt need as much labor, reducing the number of consumers.... you think China has the consumers to keep buying their junk, no way... we stop buying chinese goods and their economy tanks instantly. Originally Posted by bf0082

I believe in the coming years, decades for sure, petroleum will be fazed out with renewable energy products. So, while we may be the biggest exporter NOW, in the very near future our greatest commodity will diminish and China won't need it.

https://www.weforum.org/agenda/2019/...erpower-today/

But where I believe China will surpass us, is in the most important field of all, AI.

Chinese businesses filed 473 of the 608 Artificial Intelligence patents lodged with the World Intellectual Property Organisation last year and a third of all blockchain patents. The Chinese government is reportedly investing billions to support AI developers, including creating a $2 billion AI development park in Beijing.

https://www.industryweek.com/the-eco...a-needs-the-us

US Needs China More Than China Needs the US

Of course many things could happen to change this trajectory but I don't see the US being able to accomplish this with the upcoming generation pondering whether we should be a socialist nation or a capitalist nation. There is no doubt what China has decided on.

https://www.forbes.com/sites/kenrapoza/2020/04/30/why-is-the-us-is-so-ridiculously-dependent-on-china/?sh=246ffcec56b5

For anyone paying close attention, the pandemic didn’t teach a lesson in basic hygiene. It taught governors like Andrew Cuomo from New York, to small business manufacturers of coffee mugs, that everything you need now comes from China.


Take pharmaceuticals for example. Over 70% of active pharmaceutical ingredients used in the U.S. market are produced overseas. Almost all of the ibuprofen sold here comes from China.
It’s not just chemical compounds people don’t see, or read about every day in the business press. It’s major industries like telecom equipment that is made in China. They’ve become the biggest players.


The leading supplier of 5G equipment — and largest owner of patents — is Huawei, not Cisco Systems CSCO +0.6%. Huawei is the poster child of a China that has graduated from Happy Meal toy makers to Polo stitch-and-sew factory worker to the guys who created the TikTok app.


How long before Baidu BIDU -1.5% buys Google? Or Tencent takes a 20% stake in Twitter? Just a hunch: unless banned by Washington, it’s just a question of time.
Why is the U.S. so ridiculously dependent on just one country, a country which shares almost no social values with the U.S., and surely does not share the same political system.

The US "could" remain the greatest economy in the world under the right leadership but I don't see this new group of leaders in the Democrat party having what it will take to continue to confront China.

I hope I'm wrong and you are right.

It is my firm belief that China will be saying that in the very near future. The supply chains that China now dominates, can bring any country including ours, to their knees. Of course that wouldn't be very productive so they don't, yet.


I believe the US is in decline and 2021 will be recorded in history, as the year it started to really accelerate in decline with China holding all the cards if we and our allies don't put a stop to them right now. Originally Posted by HedonistForever

Unfortunately, the so-called “President-elect” is a wholly owned subsidiary of the CCP, so we’re pretty much fucked.

Unfortunately, the so-called “President-elect” is a wholly owned subsidiary of the CCP, so we’re pretty much fucked. Originally Posted by Jacuzzme

I think we are..... but I hope we aren't.

It won't take all that long in political time to see where Joe Biden is going to go with China And about the issue of petroleum. This came as a surprise to me. I thought the US was an important client for oil and gas but I was wrong.

China’s Top Providers of Imported Crude Oil

Below are the top 15 countries that supplied 90.1% of the crude oil imported into China during 2019.

• Saudi Arabia: US$40.1 billion (16.8% of China’s total imported crude oil)
• Russia: $36.5 billion (15.3%)
• Iraq: $23.7 billion (9.9%)
• Angola: $22.7 billion (9.5%)
• Brazil: $18.5 billion (7.8%)
• Oman: $16.4 billion (6.9%)
• Kuwait: $10.8 billion (4.5%)
• United Arab Emirates: $7.3 billion (3.1%)
• Iran: $7.1 billion (3%)
• United Kingdom: $6.3 (2.7%)
• Congo: $5.54 billion (2.3%)
• Malaysia: $5.5 billion (2.3%)
• Colombia: $5.4 billion (2.3%)
• Libya: $4.8 billion (2%)
• Venezuela: $4.4 billion (1.9%)

China will do just fine in the matter of oil and gas without the US.

I keep hearing all these stories about how much money China is lending to countries all over the world, including us. If these projects succeed, China makes out. If they fail, China still makes out because the country would have to meet certain stipulations in those contracts, like we take 51% of the company if you fail to meet your obligation and plenty of countries are failing and that was before the pandemic. While we are fighting wars in the world, China is right there offering to pick up the pieces. It's happening all over the world.


https://theconversation.com/china-makes-it-incredibly-hard-for-foreign-businesses-to-operate-but-they-stay-because-the-money-is-just-too-good-147546

As a precondition for doing business in China, American and other firms may be subjected to the forced transfer of their technology. In addition, regulations can require foreign investors to partner and set up a joint venture with a Chinese firm before they can do business in China.

The real irony here, is that China will benefit the most from this virus that they failed to secure within their borders.

Yeah, I think we are pretty much fucked for the next 2 years at least but there is that part of my brain telling me that we, the US, will not come out on the top economically or militarily. By 2030, China's economy, absent WW3, will have far surpassed the US.

By the time businesses in the US decide what color or gender or gender less a person must be for that position, even if they aren't the best you can find, most get the job because "equity" demands it. That's what I see in our future with a good of suppression of free speech by the tech platforms, thrown in for good measure.


I think history will record that the US too, went through a cultural revolution starting about 2020. Oh, it won't be as bloody and brutal as China's but it won't be an America anybody remembers unless of course you are the one doing the cancelling and not the one being cancelled for saying a word that some Americans are allowed to say and write including putting it in music, literature but if you aren't on the approved list of people that can use that word, watch yourself because Big Brother just may have finally arrived as predicted.