Part 2: How many money you have?

As I promise my readers on the previous entry, here you go the second part. Please tide your seat belt to find out more from untold mystery "The Truth Is Out There"..

We had being taught at school about mathematics, accounting, general knowledge just too bad that the teacher never tell us where the hell money come from. (This is because the teacher also don't know how to explain to us sigh)

It would seem natural, that the money is created by the Government, and in fact most Central Banks seem to be owned by the Government and run by it. I say "seem" because when the Government needs money, it does not order the Central Bank to credit some money to the treasury's account. The Government only has two ways to obtain money. One is taxation of it's citizen, the other is borrowing from the bank.

Okie. If you are still with me from the Part 1: How can the banks "create" money? That is a good question. Is it not the Government's printing office that prints all the banknotes?

Most of the time, we are misleading by the movie that the Government can simply printing money when they need to do so. As I mention early money is create by credit. When the Government need some cash credit either budget from taxation or borrow from privates (through the banker) and that is has to pay interest for this. That is why Governemt's Bond interest rate is alway chepaer than banker :p

Now we start to see why the Government never has money, and why much of our taxes go "off the top" of the budget, towards debt service. As a strong prove of my statement, the Government budget alway showing negative which means using future taxpayer's money.

The important thing to know: Money is created just by inserting some numbers into a computer.

To be continue...

Part 1: How many credit you have?

In today context, credit card no long a luxury however is a must. We pay our air-ticket, Internet bill, phone bill, housing loan, car loan, student loan, personal loan, Ikea or Courts furniture, Pak Tohing expenses and many more to be mention. Just take out your so call Plastic Credit Card and someone will swipe your card on a machine. The purchase transaction is done when you signed on the doted line. Wola within a minutes magic does happen between you the buyer, the retailer and the banker. When you walk out loaded huge carrier with "wind" all party are satisfy and happy. This is because you are given 5-10% discount for the rebate. On the other hand the retailer get profit of 30-40% depend on case to case basis. Finally the banker earn 3% for the service provided or even up to 24%p.a. if you are minimum monthly paymaster. Don't be too surprise this happen everyday and who know you are one of them. Here are the clip of Money As Debt:
Enjoy the clips ^^
1. Money As Debt 1: what money is & why we are bankers' slaves
2. Money As Debt 2: what money is & why we are bankers' slaves
3. Money As Debt 3: what money is & why we are bankers' slaves
4. Money As Debt 4: what money is & why we are bankers' slaves
5. Money As Debt 5: what money is & why we are bankers' slaves

Without beating around the bush, here is the hot potato: Money is being created not by our governments, but by a private monopoly run by the (private) banking corporations.

How many credit cards you have? The more the merry :p To be continue..