019 Define the Economy, Federal Reserve Bank, Inflation, Smart Money, Debt - The Prepper Podcast

Summary: <a href="http://theprepperpodcast.com/wp-content/uploads/2014/02/The-Federal-Reserve-440x330.jpg"></a>In today's Episode I Define the Economy, Explain the Federal Reserve Bank, Explain inflation and the cause, I discuss the option for smart money, and our debt Housekeeping: I have a book: “The Honey and The Bee” Prepper Podcast Call-In line: (978) KNOWS-IT or (978) 566-9748 Winner of the Colt Tactical Survival Knife is Greg from TN Discussion: Call from Joe of Missouri: Wood pellet stove vs wood stove Wood Stove Pro's Eats almost anything solid that is flammable (wood based) No moving parts other than the door and the damper Does not require electricity You can cook on the top if its large enough Pellet Stove Pro's As long as the hopper is full if produces effortless heat Starting the fire is easy Wood Stove Con's You have to empty the ashes on a regular basis You have to feed it wood on a semi regular basis Takes work to start the fire Pellet Stove Con's Takes electricity to work Pellets are pricey compared to cord wood Many moving parts to break down Expensive 600 vs 2000 Why not use a rocket mass heater High efficiency Clean Burning Mass stays warm when fire is out Most can be built for less than that of a wood stove Money Money is a means of exchange for goods and services The common agreement that money has worth is what make it so Money has been used in many different forms Cattle Gold Silver Paper Money Digital Currency Most people think money is gold backed Fiat Currency- value because government declared it so Ours is Debt backed - Every Dollar you spend is backed by debt This is how the Economy is run Banks loan money that they don’t have That money is placed in circulation Now we have more money in the economy Where do the banks get the money The Fed loans them the money Where Does the Fed get the money Two Ways They force “member banks” to keep money in the fed They have the Mint print it for them U.S. Monetary Aggregate Transparency: M0: Cash and Coins… FederalReserve Notes, US Notes, Coins M1: M0 + Deposits… Demand Deposits, Travelers Checks, Other Deposits M2: M1 + Savings… Saving Accs, Money Market Accs, MM Mutual Funds, CDs under 100k. M3: M2 + All other CDs (large deposits, institutional MM Mutual Fund balances), Deposits of Eurodollars, and Repurchase agreements M4: M3 + Commercial Paper + Treasury Bills 2006 Treasury stopped Publishing the M3 components except inst. MMMF 2 years later… bailout… M3 STAT So every dollar spent by the Government is created by the Mint through the Fed and is another debt backed dollar on the market Now the Government has to pay the fed interest on all that debt, just like we do. They have the IRS They sell more Bonds to Fed and Us Bonds in the 401k MyRA The government is taxing us to pay their debt interest! more taxes = we have to work harder to earn the same amount even though our money is now worth less taxed for the welfare as well Resources: * Federal Reserve Economic research: <a style="font-size: 13px;" href="http://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.6" target="_blank">http://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.6</a> Clever Survivalist Blog related Survival Guide Posts: * <a style="font-size: 13px;" href="http://cleversurvivalist.com/2013/02/26/economic-failure-federal-reserve-money-supply-and-criticism/" target="_blank">Economic Failure</a>, <a style="font-size: 13px;" href="http://cleversurvivalist.com/2013/02/26/economic-failure-federal-reserve-money-supply-and-c..."></a>