How can money be created?

[doctor_wat_son]

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karon, laing pangutana: naa bay ahensya sa goberno nga nangoykoy ug mga golds para i-deposito? mas maayo siguro ug motabang tag pangoykoy para modaku atoang kwarta. diba? diba?

[giddyboy]

karon, laing pangutana: naa bay ahensya sa goberno nga nangoykoy ug mga golds para i-deposito? mas maayo siguro ug motabang tag pangoykoy para modaku atoang kwarta. diba? diba?

OT:

this is what our Phil. mining industry has been doing. We have lots of miners like Benguet Corp, Philex Gold, United Paragon, Lepanto, Marcopper, Manila Mining, to name a few. even if some are mining for copper, chromite or coal, a certain percentage of ores they dug contains gold. they refine it and our Central Bank (CB) buys it from them. The Central Bank then makes it part of our gold reserves. and it also depends on our country's fiscal status if our CB needs to buy, much more can afford to buy. Sometimes CB also sells our gold reserves to buy more international currency reserves like the USD or the euro.

But we should note that miners don't only sell their gold to the Central bank. They also sell them to jewelers and also export these to other countries. it's FREE TRADE.

the Phil. mining industry produces gold at a consolidated average annual rate of 30,000 KG.

other than local mining, we also buy gold from other countries.

[johnbond007]

Ok i understand, thanks! So it means that our total amount of money here (including that of the business tycoons) is being associated with total value of our gold reserves. What other commodoties aside from gold reserves that constitute to the printing of our money?

If more foreign investors are coming in, does it mean that the CB prints more money more than the value of our economic/gold reserves? Because surely the total amount of money rolled out in the country may not be enough to cover if more and more foreign establishments are coming in because that means more money is being produced.

Another, why are not all currency values equal? Like 1Peso: 1USD: 1Euro and so on and so forth with other foreign currencies?

[martianboy]

Ok i understand, thanks! So it means that our total amount of money here (including that of the business tycoons) is being associated with total value of our gold reserves. What other commodoties aside from gold reserves that constitute to the printing of our money?

If more foreign investors are coming in, does it mean that the CB prints more money more than the value of our economic/gold reserves? Because surely the total amount of money rolled out in the country may not be enough to cover if more and more foreign establishments are coming in because that means more money is being produced.

Another, why are not all currency values equal? Like 1Peso: 1USD: 1Euro and so on and so forth with other foreign currencies?

unsa man na imo last question bai? balik napod ta sa kamatis-kamatis ani. Mora man nag question nga "why the sky is so high?" kanang pangutana sa mga batang gagmay ba?

[jabez_rmc]

maybe this will help out a littlebit...

it is similar to a Bank check... one cannot issue many checks to pay off your bills unless you have account in your bank..thus a country cannot just make money without gold reserves

[johnbond007]

unsa man na imo last question bai? balik napod ta sa kamatis-kamatis ani. Mora man nag question nga "why the sky is so high?" kanang pangutana sa mga batang gagmay ba?

Murag question sa bata lagi pero lisod baya na tubagun mga questions sa mga bata.

[lheoreg]

Good Day Bro.. Tan-awa sa bisan unsa nga papil nga kwarta sa pilipinas naay naka suwat nga "ang salaping ito ay bayarin ng bangko central at pananagutan ng Republika ng pilipinas" Meaning Bro ang atong goberno dili maka patuyang ug himo ug kwarta kay igo ra cla ni guarantiya between the bangko central and the philippine republic, so kng magpahimo ug kwarta ang atong goberno kinahanglan pa cla mag deposit didto sa banko central aron makahimo ug kwarta.. Mao na nga maka dungog ka ang atong goberno na

[lheoreg]

Good Day Bro.. Tan-awa sa bisan unsa nga papil nga kwarta sa pilipinas naay naka suwat nga "ang salaping ito ay bayarin ng bangko central at pananagutan ng Republika ng pilipinas" Meaning Bro ang atong goberno dili maka patuyang ug himo ug kwarta kay igo ra cla ni guarantiya between the bangko central and the philippine republic, so kng magpahimo ug kwarta ang atong goberno kinahanglan pa cla mag deposit didto sa banko central aron makahimo ug kwarta.. Mao na nga maka dungog ka ang atong goberno nag gold deposit sila sa banko central.

[etgo]

have to work hard. think hard.

[smurky]

people have different levels of understanding on specific subjects... it so happen that our friend is good in digesting other info but quite limited pagsabot sa terminologies nga gi-explain sa wikipedia...

our friend wants answers that why he bothered to post and ask from those "knowledgable few" who really know the topic... my 2 cents... peace...

sometimes the best communicators are those people who can explain complicated
stuffs and make the audience/listeners understands it perfectly well.... peace

This is exactly your problem ... you want answers, but don't want to read. If you can't be bothered to read, why should others be bothered to explain?

I'm just going to say this, all money has to be backed by something tangible ... gold, silver, etc.