1.The Fed holds a meeting
2.Those in the room decide how many more dollars they think the world needs
3.Someone walks over to a computer and adds that many dollars to the banks, with a few clicks of the keyboard
The banks then, if they want to, lend this new money out into the economy on a fractional basis, adding even more "thin air" dollars to the nation's money supply
All this is very true. The part about lending it out is not happening. The use it to trade. Ben and Obama are just fleecing the little guy. Actually they have fleeced some very good wealthy folks. I know folks who donated mega buts to their communities that now have no money to give out. Some have even had to sell their homes. Yes they were successful business people that of course had loans. When up for renewal the banks would not continue the loan. The money by the lending institutions was going into the market. They lost their hotels, restaurants and business. These were good people that these crooked banks have hurt badly. I have a friend that lost a fair bit of money to one of these bankrupt individuals who just received a cheque for the money he was owed. The individual is getting back on his feet and although he doesn't need to pay the money back because he was bankrupt, he is paying back those that lost money. My friend was so impressed because he will not be doing business again so there is no gain for the businessman. There are still many good people out there. They just are not the people running the country.
yeah on a tv show recently there was this guy who was really rich (billions). he promised 50MM or so to some university. He went BK and they had to sell all of his possessions and house. the school was suing him for the money he didn't have. his wife was young and hot but had to give up all her jewelry, cars, etc... pretty sad. forgot how he lost his money.