Quote:
Originally Posted by tracyrtwyman 
So many people are ignorant about even the basics of modern economics, that they too share this total misunderstanding of how currency is created by banks. It is the ultimate in "scarcity thinking", as Steve Pavlina calls it. Not only do you believe that you personally can only have a finite amount of money, but you believe that your country, and indeed everyone in the world, is thus also limited. It's not true, and our country is great because our leaders have always understood this. But thinking this way as a populace is what creates depressions, recessions, and currency devaluations. It's actually unpatriotic to think this way, and it hurts the entire country.
Here's an article I wrote about how the Federal Reserve creates money, and how the concept of infinite wealth is built into the very structure of the American dollar: [LINK] |
Yes, the Federal reserve does create money. Actually a better way of saying it would be "the Federal Reserve prints paper currency." It cannot create real wealth, just pieces of paper that we call money. The printed money from the Fed becomes government debt, and is ultimately a tax on all of us. Not to mention that it causes inflation and actually decreases our wealth.
True wealth is created through the millions of mutually beneficial transactions that occur every day throughout the world. When I give you 10 dollars for a book, it's because I value the book more than the 10 dollars and you value the 10 dollars more than the book. This transaction leaves both of us better off, and wealthier.
The Fed does not make anyone wealthier (except for the government). If you want to become truly wealthy in your life, then you will have to help a lot of people by providing them with something that they value more than their money.
That being said... my personal goal is to reach a million by age 30. I'm 25 now.