Thursday, 19 February 2015 14:14

Yes, Virginia, the Banks Really Do Create Money Out of Nothing

Yes, Virginia, the Banks Really Do Create Money Out of Nothing

Just last year, the Bank of England openly admitted that the private banks are responsible for creating the bulk of the money supply out of nothing. This is significant, because although the truth about the bank creation of money has been floating around in the public forum for at least the last one hundred years (largely due to the efforts of C.H. Douglas and others), some bankers and economists have denied this reality (while others, like Reginald McKenna, have been quite open about it) [1]. Even today, there are many people, including many politicians, who are blissfully unaware and/or seriously misinformed regarding the origin of our money supply.

Published in The Bank Creation of Money Out of Nothing
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Thursday, 14 August 2014 12:53

A Conversation with a Loans Officer

A Conversation with a Loans Officer

Some time ago, I had the following conversation with a loans officer from a major Canadian bank:

Wally: When you issue these loans to borrowers you create the money out of nothing, don't you?

Published in The Bank Creation of Money Out of Nothing
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