How does currency come into circulation?

someitguy79 · 2021-08-01T10:15:34+00:00

Currently it’s borrowed into existence, which is why debt in society as a whole can never be repaid. A gold standard depending on the type is mined. You set price currency on Gold like $20 per oz from 1790 to 1933. Paper money is a claim on that gold.

I suggest looking up the Rebel Capitalist or Mike Maloneys Hidden Secrets of money. It’s a vast topic.

mcouve · 2021-08-01T11:35:50+00:00

Like the other poster said, it is merely printed into circulation out of air. Look up also "quantitive easing" and shock yourself at the things that power the clown world.

To put it in a simple way, central banks create new money, which then flows into the other banks and rich guys pockets, justified as trickle down economics to expand the economy.

But if you then ask, why the economy needs to expand, it all falls down and they look at you with confused faces. "Why are you asking that?"

That whole thing is the reason why cryptocurrency appeared. Sadly it get out of control with thousands of them popping right and left, but the original concept was quite interesting.

mimetist · 2021-08-01T21:10:28+00:00

There are not that many ways to put currency into circulation.

Government mandate.
Employer - Employee contracts.
Black markets.

The most obvious is the first one. The politic powers can change laws in order to make mandatory the usage of any currency. Europe countries did make mandatory the usage of the EUR and stopped using their own "local" currencies in the 90s (Pesetas from Spain, Francs from France, Marks from Germany, etc).
The second is by contracts. Assuming that outside of the legal minimum wage that might be mandatory to pay with fiat money, anyone can negotiate with his employer or employees any kind of payment that they agree on.

For example, many members of the directive boards get their houses, cars and many other services paid by the company instead of having higher (fiat) salaries. That way they don't lose as much in taxes.

Other example is from a NFL player, Russell Okung, who asked for his salary to be paid in BitCoins.

The last option is "black markets", where you can literally pay with anything that the other part is willing to accept.

In many countries that have their fiat currency very undervalued because of hyperinflation, people stop using the official currency as a mean to exchange. Argentinians tried to buy US dollars as soon as they had any local currency in their hands.

BitCoin can be considered a form of black market, since it is not regulated yet. But this discussion deserves more technical and philosophical attention.

Now, what you were thinking about "going back to the gold standard" can only be approached safely following the first point. The second point can accelerate the process if the government sees that there is no way of stopping it. The third point is only useful if the country is at the brink of collapse and you want to abandon it.

gevorgter · 2021-08-01T21:15:41+00:00

Any currency is just a commodity like gold or oil or lumber.

As long as people want it, it is worth something. So question is, why would someone want rubles (for example).

Russia exports oil. You want to buy it. But Russian people make rubles. So company that sells oil wants rubles (they need to pay their Russian suppliers, workers...). So you need rubles.

Even if Russian company agrees to take US $ from you they will need to convert it to rubles.

So in this example, you are selling dollars and buying rubles. So the price of RUB will go up comparing to USD.

This is about it, in a layman terms.

Failedalife · 2021-08-01T15:31:17+00:00

If you bury money for anything, that's it the banks have no money, not had for a long time

nigelh · 2021-08-01T11:41:34+00:00

Gold is pretty, reasonably resistant to corrosion but only has 'value' because people pretend it does.
Rather like bitcoin when you come down to it.

wowelysiumthrowaway · 2021-08-01T16:39:49+00:00

The Federal reserve is good because it allows $ to be printed for social programs that help men out

Title	How does currency come into circulation?
Author	BubblyNefariousness4
Upvotes	3
Comments	11
Date	August 1, 2021 10:07 AM UTC (5 years ago)
Subreddit	Posted in /r/MGTOW
Original Link	https://old.reddit.com/r/MGTOW/comments/ovpkci/how_does_currency_come_into_circulation/
Archive Link	https://theredarchive.com/r/MGTOW/how-does-currency-come-into-circulation.796357 https://theredarchive.com/post/796357

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