Does your life have a purpose?

[Turismo]

^ thank you

[DeviantRebel442]

bottom line on money. if the reserve prints 1 billion dollars what do they have that is worth 1 billion dollars to back it?

do you understand anything about the market what so ever...

the value of money is judged on the basis of how much its traded and how much of it there is...not omg can i back it up with a material thing...

Remember, as long as people have faith in the currency, a central bank can issue more of it. But if the Fed issues too much money, the value will go down, as with anything that has a higher supply than demand. So even though technically it can create money "out of thin air," the central bank cannot simply print money as it wants.

thats how its worked for almost the past 40 years...

all currency valued is controlled by the world trading market...you got a problem with the way the world works...find somewhere else to live

this is getting ridiculous...the guy is comparing it to a century old method where the countries used to hold gold reserves...

if you wanna get a argument going get some education and understand things first...

this is ridiculous...its a movie...it has some points ill give it that...but many are false...and why is that site valid...BECAUSE IT CAN BACK IT UP...this is like a Michale Moore movie...gives you TONS of questions MAKES YOU THINK...but doesn't give you answers for everything...but i find it rather offensive at some parts as well...

im now losing respect for those enforcing this and thinking its the only truth and its all truth and its nothing but the truth...

im even offended by some of it...

basically saying my religion is false...all this biscopto crap...every religion builds on others...it doesnt make them false by any means...

man...honestly....COME THE **** ON...

heres another link for you...go read how the federal reserve works...

http://money.howstuffworks.com/fed.htm

and next time you think this is true...maybe think that this guy put it out there just like dan brown did with the Da Vinci code...these are all old arguments (except for the 911 one)...there all controversial...people are bound to buy it and believe it...and it will bring in money...

prolly doing it just for a buck...

[judasentinel]

There is a little caveat to what Stephan said. The value of money is not an absolute. It is a relative term. Money is valued or can be valued in terms of gold, or in terms of the price of items that it can buy.

The Fed or the Bank of Canada can print as much money as they want, and that is true. The issue is: what do they do with it? They can either sell it, OR float it for free in the market, which is what Japan once did. The impact of increased money supply is not an absolute drop in the value of money, but in the increase in value of what it can buy. See it this way: if you have $10 in your pocket, and you have to buy a jar of peanut butter, you would rather buy a no name brand peanut butter if you need some cash for transport too. But if you suddenly have $100 in your pocket, you wont feel as guilty buying a Kraft Peanut Butter, because now you have extra cash to take care of things. Free money supply can increase purchasing power, but it also increases inflation, which means that those who have more money can afford to pay higher prices for items and those who do not, will suffer. Since most people do not have a high purchasing power, and if the money supply increase goes to a few people, when that money comes into circulation due to increased prices, the masses suffer thru inflation. In essence, increasing money supply increases inflation because people are willing AND able to pay higher prices for things. The change in price of a basket of items is what we call inflation.

So, to say that valuation of money is an absolute is wrong. Every dollar printed by the central bank is put up for sale at a certain price (the Fed interest rate or the Bank of Canada interest rate) to other banks or lenders. In essence, it is also very true that when you borrow money from a bank, you are actually paying off the debt of that bank to the central bank. This basically is directly linked to the Reserve Fund that every bank needs to have with the central bank to ensure that IF there is a need to return customers' money, it can order cash from the central bank against this reserve fund. I think it used to be 10% of a bank's total cash instruments (lending and saving combined). Dont know what it is now.

But this is a very interesting and complicated subject, because now guarantees, insurance and hedging come into play, concepts that I dont think we need to cover off here.

Short and simple: money supply increase is not the best way forward, but it is always a balancing act for the central bank to perform.

One thing you will notice if you study economics. Economists never agree and are seldom right about what is going to happen.

[DeviantRebel442]

currently im majoring in finance and accounting with a minor in economics...im more then well aware of the workings of the bank...and the valuation of currency and loans...but i do not agree with what this movie is portraying...it contradicts alot of what ive been thought...as i said before...it makes points...but does nothing more then the Da Vinci code did for the idea of Jesus being married...

but to each of their own...

im not posting in this again...heres my final quote...

The February 25, 2009 edition of eSkeptic,[10] the online newsletter of The Skeptics Society, criticizes the first part of the film (the one on Christianity) by saying:

"Perhaps the worst aspect of [...] Part I of Peter Joseph’s Internet film, Zeitgeist, is that some of what it asserts is true. Unfortunately, this material is liberally — and sloppily — mixed with material that is only partially true and much that is plainly and simply bogus. [...] Zeitgeist is The Da Vinci Code on steroids."

and thanks for backing me up Judas...