before ... sorry for my English ...
Today I will deal a topic that most people have never heard of.
"Seigniorage."
I will explain a theory at first sight at an imaginary delusional scam monetary and psychological theory that we all are subject and that newspapers, TV, comics do not ever cite.
To put it in simple terms we speak of the profit generated by money creation.
I try to explain ..
First start by saying that the coin has a double meaning, a "nominal" that is what is printed on the currency and an "intrinsic" meaning all of the different costs that you have in making the money (paper, metal , ink, etc. ..).
Seigniorage is the gain then you have the difference of the two values.
But when were you born?
In olden times the gold coins were minted by the "Lord" (the noble), "which impressed them a higher value to be able to earn and so afford a" premium "substantial economic.
So the powers that be received the gold directly from the mines, with a request to convert the currency and impart his effigy to ensure the goodness and truth. The Lord then declared a coin as containing 10 grams of gold when in fact they were used only 9 grams (with the addition of 1 gram of non-precious metal). The difference between the nominal value stated (10 grams) and the actual intrinsic value (9 grams) was the seigniorage (one gram gold coin).
We come today, are now the central banks to create money, and that virtual cash (credit cards).
Example:
to print a bill or a 5 € 500 euro takes only 30 euro cents, the currency is also subject to an interest (eg. 3%), which raises the public debt of more than nominal value of money itself! In practice, a bill to the city costs € 100 and € 103 bank with only 30 cents. All this would be the seigniorage.
So why not print the money to your state (as is already done with coins of 1, 2, 5 or 10 euro cents, because it is necessary to make them spend 15 cents), thus avoiding the debt itself and its citizens with private institutions ...???
BY OZZY
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