Money as debt

Where does money come from? Have you ever asked yourself this question.

Did you know that the Bank of England and the Federal Reserve are both private institutions that have the power to create money at the stroke of a pen or the tap of a keyboard. Or that the money they hold in reserve has no relation to the amount of money they can create to loan out.

Did you know that your government borrows money from these private institutions and then pays interest on the money loaned instead of creating its own money? Do you not find that strange?

Did you realise that banks don’t loan out deposited money that they have in reserve but instead create the money as debt when you sign the loan application form. As soon as you sign that form the money is brought into existence and the only actual real tangible assets involved in this transaction are those that the debtor puts up as security on the loan.

Did you know that if there was no debt in the world there would be no money? That the growth of the economy relies on exponential growth of this combined debt and its only the time delay between taking out a loan and paying it off that keeps the whole economy from collapsing.

Here are some famous quotes from bankers and politicians regarding debt and our monetary system.

“I am afraid that the ordinary citizen will not like to be told that the banks can and do create and destroy money. And they who control the credit of a nation direct the policy of governments, and hold in the hollow of their hands the destiny of the people.” – Richard McKenna Chairman of the Midland Bank (1924)

“Wars in old times were made to get slaves. The modern implement of imposing slavery is debt.” - Ezra Pound American poet 1943

“Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside of the control of Congress and manipulates the credit of the United States.”  - Barry Goldwater US Senator

“Someone has to borrow every dollar we have in circulation, cash or credit.” - Robert Hemphill Credit Manager of Federal Reserve Bank, Atlanta, Ga.

“I, however, place economy among the first and most important republican virtues, and public debt as the greatest of the dangers to be feared.” - Thomas Jefferson – US Founding Father 1816

“Once a nation parts with the control of its currency and credit, it matters not who makes the nations laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile.” - William Lyon Mackenzie King Prime Minister of Canada

The following video is a very famous online movie which helps explain the current monetary system and how we have arrived in this sorry state in a very easy to follow manner. It should be mandatory viewing.