US Money Production: How Does It Happen?

[Human Lefts]

I think it is essential to understand how money is controlled in the US because to me, money represents power. The dollar is a unit of social power.


How is money produced in the US?

Who is in control (the deciders)?

What people have an influence (including elected representatives)?

Who are the stakeholders?

How is money distributed?

Where can I get info on current money production such as how much is being made ATM?


Separated for easy quoting :)

[ckaihatsu]

I think it is essential to understand how money is controlled in the US because to me, money represents power. The dollar is a unit of social power.


Yes and no, since there's a dialectical dynamic between economics and politics.





How is money produced in the US?


The U.S. dollar (Treasuries) is still generally looked-to as the safest investment by the rest of the world so it continues to enjoy the benefits of being the de facto world reserve currency and favored economic status.

(You may want to look into sovereign-debt-to-GDP ratios here.)





Who is in control (the deciders)?


The U.S. government.





What people have an influence (including elected representatives)?


This is a political issue of paramount importance for the U.S. ruling class so it's a key part of their executive politics at any given moment.





Who are the stakeholders?


Financiers.





How is money distributed?


Through monetary policy, as you're indicating.





Where can I get info on current money production such as how much is being made ATM?


Internet.

[Decolonize The Left]

I think it is essential to understand how money is controlled in the US because to me, money represents power. The dollar is a unit of social power.


How is money produced in the US?

Via the US Bureau of Engraving and Printing.


Who is in control (the deciders)?

The Central Bank of the United States, also known as the Federal Reserve.


What people have an influence (including elected representatives)?

Generally speaking, the Fed is solely responsible for dictating monetary policy: inflation, deflation, interest rates, etc...


Who are the stakeholders?

Huh? Everyone...


How is money distributed?

Fed > Banks > People


Where can I get info on current money production such as how much is being made ATM?

Google search....?

- August

[Lolumad273]

Look up "Fractional Reserve Banking". Right now, a bank only has to have 10% of the cash they loan out. Makes sure there is Capital on hand, however, makes sure someone is always in debt.

[ckaihatsu]

I think it is essential to understand how money is controlled in the US because to me, money represents power. The dollar is a unit of social power.


Also note that monetary policy is not nearly as all-powerful as it may seem -- and/or as U.S. nationalists make it out to be.

As revolutionaries we know that capitalism contains internal contradictions, and these play out regardless of the best ruling-class solidarity that the major world powers may accomplish. Right now a prime example of this can be seen in the ongoing Euro crisis.... (If the heads of state have the most political power in the world then why would they allow the markets to punish Greece's economy, as has been happening? And why would they *want* Greece's economy to hit the skids when it only weakens the Euro and EU?)


G20 meeting defers decision on boosting European rescue funds

http://wsws.org/articles/2012/feb2012/meet-f27.shtml

[Delenda Carthago]

http://www.rayservers.com/images/ModernMoneyMechanics.pdf

edit: Also http://whataboutmarx.blogspot.com/2012/01/what-is-money-is-it-same-as-currency.html

[Human Lefts]

^

Awesome! This is exactly what I was looking for. Thanks :thumbup1: