The main points I could discern are:
-The U.S. Treasury prints money
-They "sell" it to the Federal Reserve, a quasi-public banking institution, in exchange for Treasury bills, which are the debt instrument of the United States Government
-The Federal Reserve buys and sells many Treasury bills on the open market daily in order to keep the bills at the target interest rate
-The Federal Reserve also sells Federal Reserve Notes (dollar bills) to other banks
-Banks do not have to have 100% of deposited money on hand; they have to hold some fraction (10% for most types of deposits) and can lend the rest to others
-Fractional reserves increase the money supply (by a factor of 1/reserve rate) by lending deposited funds out, which are then typically deposited in other banks by the borrower, which banks can then lend those deposited funds out, and so on
-This is all a secret conspiracy, and you should stock up on gold and move to your compound as soon as you can put on your tinfoil hat
Points 1-6 are readily learned from a college economics textbook, and are the foundations of the U.S. money and banking system. Point 7 is believed by moonbats who think the U.S. banking system is a plot by the Illuminati/UN/international Jewry/etc. to establish a one-world government, black helicopters and all.
I appreciate your summary. I guess most if it (in a rather amorphous way) was already in my understanding. So according to your understanding, this sort of thing can just keep going infinitely? It's not self-limiting, or rather, it's on a solid platform?
It just sounds so - unsettled, foundationless.
Actually, the Fed doesn't target the interest rate of bills, it targets the Fed Funds (overnight) rate.
If there's a banking crisis again similar to what happened approx. 70 yrs. ago what would you rather have in your posession.......a FRN that's worth no more than the ink and paper it's made with or a precious metal such as gold or silver? Also, even though this money is created out of thin air.......what do you suppose is the underlying collateral?.....because as we all know bankers are far from being very benevolent when it comes to their money.
You first two bullets are ass-backwards but good try.