Who Controls Your Money? The Truth About the Federal Reserve and RBI
USA In America, money is controlled by the Federal Reserve . Now let’s understand some big words. What is a Bond? Imagine you ask your friend: “Can you lend me $100? I promise to return it after 1 year with $10 extra.” That written promise is like a bond . So… A bond is just a promise paper. The government says: “Lend me money now. I will return it later with interest.” Simple. Who is an Investor? An investor is someone who gives money hoping to get more money later. Example: If you give $100 to the government and after 1 year you get $110… You are an investor. Investors can be: Rich people Banks Big companies Even pension funds What Happens Next? If the U.S. government needs money, it sells bonds. Investors buy them. Sometimes the Federal Reserve buys them. When the Federal Reserve buys bonds, it creates new money digitally. That new money enters the system. More money starts moving. But think… Did the country suddenly produce more food? More houses? More petrol? If more money ...
