What is Money? What is considered Money? Who can create Money?
The answer will shock you!
According to data from Forbes, more billionaires made their wealth through real estate investments than any other category–by far. The combination of a consistent cash stream, capital appreciation, and tax breaks have helped lay the foundation of great fortunes and stable retirements. But billionaires aren’t the only people who know how to invest in real estate. You can do it too!
Real estate investing is an exciting way to make money. It’s a great option, but it requires planning and patience.
The purpose of this episode is to describe the basic process of money creation in a “fractional reserve” banking system. The approach taken illustrates the changes in bank balance sheets that occur when deposits in banks change as a result of monetary action by the Federal Reserve System – the central bank of the United States. The relationships shown are based on simplifying assumptions.
In the world, people do not all like to be in debt. Debt is a way for them to increase their living standards and become more productive. However, debt has risks and future obligations. It can also lead to higher incomes in the future.