Quote from: jrrsparkles on September 05, 2018, 05:39:45 PM

Quote from: tee-rex on September 05, 2018, 04:41:43 PM

Quote from: jrrsparkles on September 05, 2018, 02:49:50 PM

Quote from: Xenophoto on September 05, 2018, 02:04:15 PM

Quote from: jrrsparkles on September 05, 2018, 08:36:14 AM

The banking system is really most mystrious of our world because if we research deeply about all the banks in the world it has been in the control of few people so they were controlling all the money of the world so they can create as much as money they want and can pay the employees.

That "few people" is called the government. I don't see anything mysterious about that. People just like to think it is. There are other reasons as to why the government have to print more money. One is to replace the old ones that have been worn out. We are using money on a day-to-day basis. It's just paper and paper can break easily. Second one is the economy is actually growing and we need more money printed. Transactions aren't always done digitally and most transactions are still done with paper money.

Just like other things, printing a little bit more of money isn't bad at all and doesn't result to inflation. But too much of something is always bad. Too much printing of money will result to inflation which affects the economy of the whole country and its the people who experience such consequences the most.

The governments not printing any money only the central Banks from the respective country is printing all the money but which is not controlled by their governments as per the articles I have read on the internet.

Don't believe everything what's written on the Internet. Your note about a central bank not being a part of the government may technically be true in certain cases, but even when it is true, this is irrelevant as both central banks and governments are all part of the establishment, or the ruling elite, if you please. If you choose to disagree, then I can just say that central banks themselves aren't printing anything. If you mean paper money and coins, they are printed and minted by specialized facilities which are separate companies or corporations. If you mean cashless fiat (so-called electronic, or digital, money), it is mostly created by commercial banks via credit, not by a central bank on its own.

Okay,I agree that central banks and the governments were part of something but I have a question even since from my birth on what basis the governments were printing the money? It used to be how much Gold they were holding in the old days but now,no one knows it is still private!

As I explained in my post, central banks (or governments) typically don't print money themselves unless we talk about coins and paper money, of course. But these forms of money make up only a small fraction of all money (or what can be used as money) circulating in the economy. The rest is digital, cashless money, and this money gets created (as well as destroyed, for that matter) based on the economic activity in the country.

For example, when there is a boom, companies expand their production using the money borrowed from commercial banks. That's basically how money gets created nowadays. Such money, credit money, is called endogenous money. You have likely been told or even taught in school or college that banks need deposits to give credits, but you have been misinformed. This is not how banks work today. Banks don't need deposits for credits, and money literally gets created out of thin air, though limited by the needs of an economy via credit demand.

This process is very well established, time-tested, and there is nothing "no one knows" about it.