As FOREX traders we need to know how the currency system works, this is an excellent video that explains how money ( currency) is created, this is part 4 of a 7 part series, I highly recommend watching all 7. We are all being played for fools by the banks
Great video. Thanks for sharing. It managed to connect the dots and fill in the gaps for me. I plan on watching the other six.
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Very clear explanation, really helpful graphics. Though I don’t agree with the message.
Many thanks for that input 
and now we are entering the era of the virtual cryptocurrencies… 
Excellent video that describes the process of creating currency.
But I am not so sure that it is providing the entire pciture here. I am by no means any kind of economist, but this seems to be ignoring one fundamental issue - i.e. is created currency used to finance consumption or production?
As the video says, in the old days currency had “real” value because it was tied to the actual quantity of gold and silver that the government possessed. That no longer exists as a standard.
But an equivalent “standard” could be seen in the add-on value being created by this finance. If sufficient resources are being invested in actual production of valuable goods and services then these can be seen as underpinning the actual value of the currencies being created. There is, of course, no precise link between the two but it is clear that, in general, society has a much higher standard of living than it used to have by finance being invested in technological development, greater efficiencies and improved services.
Surely, this is wwhy trade surpluses and deficits are so important. If a country creates wealth and sells it abroad then there is a net inflow of wealth to the producer country. I think maybe OPEC is a clear example of how creating finance to create added value to be sold abroad creates significant wealth.
Surely, there are three kinds of economic activity: that which creates additional wealth, that which just stirs around existing wealth and that which just consumes existing wealth.
What we have going on in the US is a huge expansion of debt, All created money ( US currency) is through debt, Our currency even states this at the top of every bill " Federal Reserve Note" The US government is paying interest to the federal reserve bank on every dollar bill, be it printed or electronic. Our national debt is created currency from the Federal Reserve.
Right now all that currency is mostly in other countries, which is our trade deficit. Which oddly is way all this currency printing has not cause hyper inflation in the US. There is actually too few dollars in the US. But what happens when all those US dollars in other countries start coming back to the US. that is when we will see the hyper inflation, $10,000 a ounce gold and $100,000 bitcoin
Every Fiat currency every created has returned to Zero, the EURO and US Dollar will suffer that same fate
The War of Independence was started by the UK raising interest rates to the US Colonies after the US started to generate its own interest free currency.
Pre- 1830’s the US Government used to generate its own currency “tied to the gold standard”. You could walk into a US Bank and exchange USD$5 for Gold.
To get the money into circulation the US Government paid for both labor and materials with this currency for infrastructure, capital works etc. with no interest attached. Then in about 1833 the Banks lobbied and loaded congress (under President Andrew Jackson) to vote that a private company be formed to control the US money flow.
In 1913 the Federal Reserve Act was rammed through Congress and was later signed by President Wilson. At a later date, Wilson admitted with remorse, when referring to the Fed.“I have unwittingly ruined my country”. Enter the Federal Reserve and the insidious expansion of Fiat currencies and the Boom and Bust cycles caused by constant manipulation of nations Interest Rates.
In 1933 the US changed the USD, valued to the Gold standard but it no longer was exchangeable for Gold, mission accomplished… Now all Currencies are worthless, hence the inscription “Legal Tender” on currencies all over the world, enabling the elites to keep their hands on the Gold.
Note: Gold is debt free, you can gift someone a bar of Gold, increase their wealth and until it’s turned into a currency it attracts no Tax, Fees…nada.
As of 2017 there is only 3 countries left in the world that does not have its currency/money flow regulated by private firms controlled by the Rockefeller’s, Morgan’s and Co.
I am not from the US, but I’m pretty sure I read somewhere that this stuff isn’t being taught in US schools for obvious reasons. The Wizard of Oz is all about this… Pay no attention to the Man behind the curtain…
So I am not posting pages of Cut and Paste into BP I have included a link which explains it all…factually
https://www.facebook.com/notes/occupylr/federal-reserve-scam/158333630941704/
Here is a great explanation of the US Banking Scam…other than Forex…
America your goose is very nearly cooked…along with the rest of the Western World.
With fractional reserve banking, the banks could easily afford to pay a fair interest rate to depositors of say 6%, doing so would go along ways in slowing the decline of the middle class
Those of you who are stuck on the political phrase " redistribution
of wealth" This is how it is done, but you want here this from any Democrats in Congress, as they only care about the redistribution of POWER to themselves