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The requirement for governments to borrow from the private banking sector to finance public expenditure forms the National Debt
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∙ 10y ago
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Why do some people say the money is borrowed into existence?
I have been trying to get to the heart of this matter myself. The reason that people say that is because to the best of my knowledge it is borrowed into existence. When the FED wants to expand the monetary base it calls up the treasury and ask to buy a bond. Which is a debt instrument and then "prints" the money up out of thin air to buy the bond. Then that newly created money is lend to regional banks. That newly created money is then lent out at a 10 percent reserve ratio. So the bank gets 1000 from the FED and lends out 900; that same 900 is deposited into another bank and is lent out at a 10 percent reserve ratio. So 810 is loaned out. Can you see that there was only 1000 and it has turned into 1810. So when the bank lends out money it is creating new money. In other words when you go in and take out a loan the money doesn't exist until you sign on the dotted line. All money is created in this way Money is Debt. If someone can refute this claim please do.
I financed a vehicle for one amount now my first payment is due and the payoff amount is higher than the borrowed amount. Is that correct or legal?
Are you including the interest that is being charged on the borrowed amount? When you borrow money, say $10000, you are charged interest on that amount. So you'll end up paying far more than the $10000 you borrowed.
What is th difference between interest and principal?
If you borrow some money, say 10 Dollars, the person who you borrowed from will want you to pay it back. The 10 Dollars you have to give back are the principal. Chances are, they'le want some extra money along with the principal. In this example we'll say an extra dollar. The extra money you pay back is called interest.
What are the Advantages of using surveys?
its all free beware of sites that say you have to give them money they will take your money the disadvantage is that people lie on them all the time
Why the interest on a loan is a business expense and a tax deduction but the principal payments are neither?
Because the princial payments are your simply returning the money you borrowed. WHEN YOU BORROWED THE MONEY, IT WAS NOT TAXABLE INCOME, RETURNING IT THEN CANNOT BE TAX DEDUCTIBLE. (Or every year I would borrow an amount say equal to my taxable income from all sources from someone/thing (bank, brother, friend who I lend the same amount to at the same time), and pay it back the next day...creating a deduction, and eliminate all my taxable income from all other sources).
Why do some people say the money is borrowed into existence?
I have been trying to get to the heart of this matter myself. The reason that people say that is because to the best of my knowledge it is borrowed into existence. When the FED wants to expand the monetary base it calls up the treasury and ask to buy a bond. Which is a debt instrument and then "prints" the money up out of thin air to buy the bond. Then that newly created money is lend to regional banks. That newly created money is then lent out at a 10 percent reserve ratio. So the bank gets 1000 from the FED and lends out 900; that same 900 is deposited into another bank and is lent out at a 10 percent reserve ratio. So 810 is loaned out. Can you see that there was only 1000 and it has turned into 1810. So when the bank lends out money it is creating new money. In other words when you go in and take out a loan the money doesn't exist until you sign on the dotted line. All money is created in this way Money is Debt. If someone can refute this claim please do.
Why do some people say that money is borrowed into existence?
When for example a bank takes deposits they almost immediately loan out the vast majority of that money keeping only a small fraction in reserves. On each such cycle the total amount of "money" in the economy could potentially double. When the individual or business borrowing the money spends it eventually it gets redeposited and re-loaned, repeating this cycle. The same thing happens with other methods of investing, each time money is borrowed it multiplies because the investor has it in his account and someone else is using it. After enough cycles the total amount of "money" in the economy is much much larger (e.g. 10 cycles could approach 1000 times the original amount of money).
Do elephants like circuses?
NO! I would say no they don't, it is more of an existence for the elephant, and entertainment (and money) for humans.
How marijuana came to existence?
lets just say some people are stupid
Is borrow an adjective?
Yes and no . . . Eg of YES) A librarian may say, "That is a borrowed book." Eg of NO) A librarian may say, "That book is being borrowed." It depends on the context of the sentence.
What are the sources of working capitals and list some examples?
this is when money is used to buy thing then to sell again example say i borrowed money from the bank to then that same money i use to buy things to sell a service or product
What are some sources of working capital and list some examples?
this is when money is used to buy thing then to sell again example say i borrowed money from the bank to then that same money i use to buy things to sell a service or product
Can you get this book borrowed?
i can only answer if you say which book. but it probably can.
How do you say bible in Yoruba?
it was borrowed from English bibeli
I financed a vehicle for one amount now my first payment is due and the payoff amount is higher than the borrowed amount. Is that correct or legal?
Are you including the interest that is being charged on the borrowed amount? When you borrow money, say $10000, you are charged interest on that amount. So you'll end up paying far more than the $10000 you borrowed.
Why are some people so reluctant to accept the existence of ghosts?
Because there is no evidence to say they do or don't exist
How do Spanish people say money?
dinero
