The Biggest Secret About Banking Has Just Gone Mainstream

Banks Create Money Out of Thin Air … Conferring Enormous Windfall Profits At the Expense of the People

We’ve pointed out for 4 1/2 years that banks create money out of thin air.

Specifically, it has now been conclusively proven that loans come first … and then deposits FOLLOW.

This is the most important secret about modern banking … because it debunks one of the biggest myths preventing a strong economy, challenges one of the main pork barrel profit centers for big banks … and opens up incredible opportunities for a prosperous economy.

This odd and counter-intuitive – but crucially important – truth has now gone mainstream …

Specifically, the Financial Times’ Martin Wolf – one of the world’s most influential mainstream financial writers –  says that, since banks create money out of thin air, they should be stripped of this power, and limited to normal depository functions. Wolf indicates the centrality and importance of the issue with his subtitle:

The giant hole at the heart of our market economies needs to be plugged.

And Business Insider – the world’s most popular financial news blog – is currently running this as its top two front page stories:

(Read the Business Insider stories here and here.)

If we reclaimed the power to create credit from the too big to fail banks, we would all be much wealthier

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  • Har Det

    I feel really bad for people in this economy, I like everyone have been struggling. But I tell you what I’ve done I’ve taken life into my own hands being responsible for myself. I knew trading was the answer for me and I’ve purchased different courses at different places and the best course I’ve found by far is at the website Traders Superstore, just Google them and find them and do like I did they get started trading for yourself and take life into your own hands.

    • BoneStamp


  • Dee

    Sounds more like, in the example of the new house /new mortgage, that the builder created new value, the bank created enough money to transfer the property from the builder to the buyer .. which is only on the banks books so long as there is a mortgage. By the same reasoning, aside from the interest, the created money disappears from the banks when the liability is paid off, and the builder is richer, the buyer has a home and the bank has the interest.
    There is creation of money/value/physical thing all happening in unison. labor has value.. new labor happens every day, new raw material converted to usable things has new value , conversion happens every day acquiring new raw material / mining/ harvesting trees is all a conversion to a more useful thing using new labor .. so all this new value or wealth is created everyday, if new money wasn’t created at the same rate as new wealth was created .. how would anybody get paid? or how would new labor and adding new value to physical material or adding new physical material be balanced in an economy?
    the new money isn’t out of thin air, so much as it is a response to newly created value.. seems to me.
    I’m not saying any of the amounts of money are correct in response to the newly created value, that is above my pay grade.. perhaps the banks get too much interest, perhaps 2X4’s shouldn’t cost that much more than a standing tree, maybe the value of the loggers work is over paid, perhaps the construction workers are over paid ( I know the electricians and plumbers are .. just joking , but they do get paid a lot) , or in each of these stages perhaps the labor or conversion to a more useful thing is under paid under valued .. I don’t know.. don’t really care right now.. The basic concept though is that new wealth/value is created .. newly created tokens to integrate newly created value in to the economy so nominal recognition of the newly created value is roughly the same as existing value of similar things has to happen to balance things. So nothing is out of thin air , it is out of skill and sweat or a response to skill and sweat..
    I don’t know.. I could be wrong.. I just know I do things everyday that create value, everybody I know , well almost everybody I know doe the same thing, creates new value every day.. different people at different rates in different ways and the value created is not seen in exactly the same way by everybody .. but a general consensus that more houses have more value than fewer houses seems reasonable.. and likewise worn out , broken, destroyed things, uncreate value everyday.. but again a general consensus is that more value gets created than is lost generally speaking .. that labor is converted into value by the value of the service provided or the goods created .. and to me,.. I’m no economist, the economy has to have some mechanism to balance this creation with recognition of that new value in the economy.. which would be money, tokens of some kind so yesterday’s or last weeks newly created value is as valuable as today’s or next weeks newly created value when it actually comes into existence. And creating that balance, or maintaining that balance, has a value all it’s own.
    not defending the bankers .. not arguing that the banks are the only way to do this or anything like that. Just saying it isn’t out of thin air .

    • Yulek

      If new money are not created at same rate as new wealth, then law of demand and supply dictates, that the value of money increases relatively to overall amount of wealth. In other words you get deflation, which is good for savers, bad for debtors, therefore bad for banks, since current monetary system is inflationary and doesn’t take deflation well. The main problem with current system is not that it benefits those, who take out loans, but the fact, that the system is tilted towards those with most money already (the so called 1% is rumored to get credit at 1% or even less), which gives them superb advantage over the rest of us (I for example can’t get credit at less than ~20% for consumption, but in my country banking system is very usurious). The monetary system is simply perverted and benefits the few. Now you can argue if this system was set in place because there was a conspiracy of bankers and other wealthy a-holes, but I think it was the best system possible to accelerate consumption of natural resources available.

      • Yulek

        To clarify I meant the rate of money creation to be slower than the rate of new wealth creation.

        • Dee

          well if you don’t understand a system it is a conspiracy.. if you do understand the system you can use it to your advantage and it is just a system.
          If you don’t understand how money works , you can’t make money work for you.

          • Yulek

            You can’t make money work for you, unless you are a lender, but even then, it is the people who borrow from you, who do the work, not the money. And this system is surprisingly simple and easy to understand, all you have to do is to stop listening to economists, who make a living by making it look complicated and usually are lost themselves in the web of complexity they created to make sure someone doesn’t come up with a better system and makes unemployed. (well I admit, it took me 3 years to come to this conclusion after this economic mess started). Anyway, as I see it, no one is taking advantage of current monetary system, it seems it is all about our good old cronyism and outright criminality, and it is happening all over the western world. After all this system in the USA is working for more than a hundred years, and everything was quite fine around 1950s and 60s. Personally I would prefer a deflationary system, after all I prefer to save and hate having any kind of debt.

          • johnjoe2

            The federal reserve(private bank) is debt driven, when our government gave them power in 1913 we were indebt to them and have been ever since. The federal reserve charges us interest on money printed out of thin air. They put $1,000.00 into our economy and charge 10%(rounded out % rate to make math easier) interest at the end of the cycle we owe the federal reserve $1,100.00 but the feds only put in $1,000.00 dollars into the system so there is no way of paying then back $1,100.00 dollars so the feds loans use $100 with interest to pay off the other interest, and the snowball affect continues to this day.

          • johnjoe2

            The federal reserve(private bank) is debt driven, when our government gave them power in 1913 we were indebt to them and have been ever since. The federal reserve charges us interest on money printed out of thin air. They put $1,000.00 into our economy and charge 10%(rounded out % rate to make math easier) interest at the end of the cycle we owe the federal reserve $1,100.00 but the feds only put in $1,000.00 dollars into the system so there is no way of paying then back $1,100.00 dollars so the feds loans use $100 with interest to pay off the other interest, and the snowball affect continues to this day.

  • jadan

    “If we reclaimed the power to create credit from the too big to fail banks, we would all be much wealthier.”
    In other words, if we eliminated the private monetary system we call the Fed, and invested the power to create debt-free money in our own Treasury, we would no longer be subsidizing financiers who pervert the nation’s credit for speculation. The allocation of credit would no longer be the prerogative of oligarchs. Public infrastructure projects could be funded with 0% interest loans to create plenty of jobs and consumer demand. The middle class would grow again and income inequality would decline. This was a proposal put forward by Dennis Kucinich with his NEED Act, HR 2990 in the last Congress. Monetary reform, deep monetary reform that ends private control over the nation’s money supply is the only solution. We do it, or we fail as a society.

    • Bev

      “Public infrastructure projects could be funded with 0% interest loans” …
      It is not just Interest-free loans with an accompanying debt which would then require that the debt principle has to be paid back; it is much better than that.

      It is an Interest-free and DEBT-FREE money spent (not loaned) into society for needed infrastructure and services. And, it is the only way to pay for massive cleanups for the generations it will take to even try to deal with the danger of Fukushima (Japan needs to adopt this plan also), the 400 other aging nuclear power plants, and the Climate Change Crisis to benefit the common good.

      As jadan says above, all nations need to see the Dennis Kucinich NEED Act, HR 2990:
      Congressman Dennis Kucinich introduced an employment bill reforming our money system: The NEED Act proposes a historic money reform, containing all the monetary provisions of the American Monetary Act including ending “fractional reserve” banking.

      Professor Kaoru Yamaguchi’s Model of HR 2990
      Professor Yamaguchi (Berkeley, Doshisha Universities) shows that Kucinich’s HR 2990 NEED Act:
      (1) Provides the funding for infrastructure repair (which solves the unemployment crisis)
      (2) Pays off the national debt as it comes due
      (3) Does this without inflation! Click here to watch a video of Professor Yamaguchi’s presentation to the 2010 AMI Conference. Wow!

      • Bev

        As American Monetary Institute Chapter Leader, Dick Distelhorst, says:

        “We don’t want to put the government into the banking business – we want to get the banks out of the money creation business!” – Dick Distelhorst

        Historical experience has taught us what we need to do:

        1. Put the Federal Reserve System into the U.S. Treasury.

        2. Stop the banking system creating any part of the money supply.

        3. Create new money as needed by spending it on public infrastructure, including human infrastructure, e.g. education and health care.

        These 3 elements must all be done together, and are all in draft legislative form as the proposed American Monetary Act…

        • jadan

          Thanks for the good info!

        • Magua1952

          This idea of Misters Kucinich and Conyers relies on the competence and worthiness of our elected Congress to manage finances on a much larger scale than the past and present. The record so far has not been good.

          • Bev

            [Private bankers] And look what they have done with that power:
            * They’ve given special privilege to create money to some, and disadvantage to others; which has led to an obscene concentration of wealth and a corresponding poverty! This has encouraged lawlessness and corruption among the privileged; pushing them to diseased excess for acquisition, and ignoring those among us in great need.

            How the Economists Facilitated the Crisis and How HR 6550* (HR 2990) Solves it
            …Economist Jamie Galbraith in testimony to the Senate Crime subcommittee on May 4th, 2010: “I write to you from a disgraced profession. Economic theory, as widely taught since the 1980s, failed miserably to understand the
            forces behind the financial crisis.”

            With rare exceptions, those in control of the World’s monetary/economic agenda and the theories supporting it have helped bring the world to its knees. Shouldn’t they (and their theories) be held accountable? The challenge will be for “youngsters” like yourselves, to bring your chosen profession to its senses.

            False “monetary” beliefs (some call them theories) have misdirected public policy decisions for decades, with devastating effect! Errors of Concept, methodology and factual errors led to disastrous outcomes for our nation and have the potential to gradually take America down into an unprecedented abyss of lawlessness and deprivation. Consider the present insane calls for austerity. Economists have allowed the idea to prevail that a government has to be run the way a shopkeepers runs his store. These times call for greater care and some heroism among economists; and cowardice is no longer tolerable among those who do understand.

            Which particular monetary errors? Most importantly, economists have not understood or appreciated the difference between money and credit. That using credit for money is dangerous, harmful and unnecessary. Can’t they read Knapp’s “State Theory of Money, available in English since the early 1920s, to understand credit is just one type of money system, and not a good one at that? Even Minsky who pointed out that such a fractional reserve system always collapses, regarded that as a problem inherent in “Capitalism, and didn’t consider eradicating it but merely called for government providing jobs when the credit structure was in collapse. A solution that one of AMIs researchers said was like “trimming poison ivy!”

            Many economists have falsely concluded that “all money is debt,” and while most money in our particular mis structured system is debt, this attitude ignores the possibility and necessity to define a better system based on government money, not private debt. This failure to understand the concept of government money as opposed to private credit, has had immense and deadly repercussions. The Great Henry Simons summed it up in one magnificent sentence in the 1930s:

            “The mistake … lies in fearing money and trusting debt.”
            Henry Simons, (Economic Policy for a Free Society, 1930s, P.199)

            This fundamental error has allowed the most egregious banking and money system to dominate our society for a century. It has caused immense damage:

            For example: The privatization of our monetary system, with control over public policy being in unelected hands, for whoever controls the money system, over time will control the nation.

            And look what they have done with that power:

            * They’ve given special privilege to create money to some, and disadvantage to others; which has led to an obscene concentration of wealth and a corresponding poverty! This has encouraged lawlessness and corruption among the privileged; pushing them to diseased excess for acquisition, and ignoring those among us in great need.

            * They’ve turned economics into a primitive religion, and worshipped the “market” as a god, despite all evidence to the contrary. A primary tool they use is to denigrate and ignore evidence. “Anecdotal” was the description Greenspan used for real evidence that challenges their theories. A fundamental sin of poor methodology.

            * They have placed an unnecessary ball and chain on the leg of every producer by having the money supply itself bear an unnecessary interest cost to society.

            * They’ve foisted a “fractional reserve” system on us prone to periodic collapse. Credit will collapse during a crisis. Money does not collapse. Credit will collapse during a crisis. Money does not collapse. Money does not collapse.

            In our present system most of what we use for money – more accurately
            purchasing media – comes into existence as an interest bearing debt, when banks make loans. In that sense, most money in our fractional reserve system – is debt. But economists can’t seem to grasp that those rules can and must be changed. Afraid to confront their paymasters, who are benefitting from the injustice, they can’t conceive of practical ways we can use real government issued money for money instead of substituting private debt for it. They ignore previous attempts such as the Chicago Plan of the 1930s; and smear prior periods when such real money was used successfully.

            Errors of methodology regarding money include refusal to examine the facts and a tendency to ignore history where the monetary facts are found. This leads to the silliest errors of fact regarding monetary history including:

            * Being unaware of the colonial periods’ excellent experience with government money.

            * The Continental Currency – they are generally unaware they were destroyed by Brit counterfeiting.

            * The Greenbacks – which is mistakenly characterized as worthless paper money, ignoring that they ultimately exchanged one for one with gold.

            * The French Assignats – where they have again ignored Brit counterfeiting and enshrined the propaganda book written by a banking heir as unbiased fact (White’s Fiat Money in France)!

            * The German Hyperinflation is not recognized as occurring under a privately owned and privately controlled Reichsbank!

            * Regarding the FED as part of the government!

            * The Free banking Schools misidentify the Free banking period because New York’s “Free Banking Law” gave better results. But despite its title it imposed much stronger requirements and regulations and was the opposite of free banking!

            Jamie Galbraith ended his testimony to the Senate’s Crime Subcommittee with this warning: “But you have to act. The true alternative is a failure extending over time from the economic to the political system. Just as too few predicted the financial crisis, it may be that too few are today speaking frankly about where a failure to deal with the aftermath may lead.

            In this situation, let me suggest, the country faces an existential threat.
            Either the legal system must do its work, or the market system cannot
            be restored. There must be a thorough, transparent, effective, radical
            cleaning of the financial sector and also of those public officials who
            failed the public trust. The financiers must be made to feel, in their
            bones, the power of the law. And the public, which lives by the law,
            must see very clearly and unambiguously that this is the case. Thank

            James K. Galbraith to the Subcommittee on Crime, Senate Judiciary Committee, May 4, 2010.

          • Magua1952

            Interesting comments. I think you are against interest charged for the use of money. Who will make the interest free loans?

          • joebhed

            Nobody. Who said anything about interest-free loans?
            “debt-free’ money means it is ISSUED without any debt.
            When it is issued into circulation, it goes into private bank accounts.
            From that source, banks lend money at interest.

          • joebhed

            Wrong. Where did you hear that?
            All the Congress has to do is pass the Bill, which is YOUR job.
            Afterwards, Congress BUDGETS. Same as now.
            Treasury issues into circulation the money that Congress budgets, and the Bureau of the Fed administers and supervises the banks.
            The banks lend ALL the money and manage finances.
            ALL of it.
            It’s called public money administration.

    • “It is absurd to say that our country can issue $30,000,000 in bonds
      and not $30,000,000 in currency. Both are promises to pay; but one
      promise fattens the usurer, and the other helps the people.” ~ Thomas Edison

      • Bev

        So good. Another good quote:

        Best Political Quote in Over 100 years!

        “If men can create electronic bookkeeping entries representing debt and loan them into circulation, men can surely create electronic bookkeeping entries as a payment and spend them into circulation with no debt. Which do you prefer?”

        – Gregory K. Soderberg, Rep. Candidate MN. Lt. Gov., 2010

    • MrTruth

      “In other words, if we eliminated the private monetary system we call the
      Fed, and invested the power to create debt-free money in our own
      Treasury, we would no longer be subsidizing financiers who pervert the
      nation’s credit for speculation.” Your country is printing money without a gold reserve to back it. The American economy is keeping its head above water by the grace of massive loans from China which the USA will never be able to pay.

      • joebhed

        I hope that was sarcasm.
        Cuz it sure ain’t truth.
        All countries are issuing money without any gold backing.
        For near 90 years.
        That’s actually working fine.
        Issuing without debt, and we’ll be halfway home-free.
        If we did that, there would be no need to borrow from China.
        Or anyone else.
        End of story.

    • sellinpitchforks

      Nicely stated, thanks.

  • hwt123

    US is a corporation for profit owned by the same cabal that prints the fiat currency & enforced by a court that recognizes the bondholders using Maritime law.
    The gov & courts are UNLAWFUL just like the currency…
    Learn the truth folks…
    Here is the time line.
    1871 USinc formed
    1878 USinc puts in place a “legal system” using the BAR corporatin
    1913 USinc gains control of the currency
    1933 USinc bonds every living man at birth by a contract named birth certificate.

    • Furor Teutonicus

      This stuff is nonsense. There are no laws or case law backing this up.

      • hwt123

        Your name in CAPS on your ID = the name of the bond.
        The courts get their jurisdiction from the bond holders…
        The courts & gov do not recognize the only LAW in our REPUBLIC
        & jurisdiction comes from the consent of the living man.
        Common law is that consent , you remember the simple recognition that each & every man is a living man & endowed by his creator with inalienable rights. the ones the courts do NOT recognize & Common law is the only law in our REPUBLIC…

        • Dee

          Ohhh LOL Sovereign Citizens on Washington’s Blog .. what a hoot. Y’all say Hi to Cliven for me.. and watch out for the cow patties . or is that BS.. now that I look, pretty sure it is BS.

          • hwt123

            The funny part is the clueless sheep who pay these crooks , what a hoot.
            say hello to the sheep who pay for their own slavery… here is a history of the laws in place, note how the CROWN corporation collects the taxes through the Puerto Rican trust named IRS & the Queen controls social security?


          • Sovereign Citizen is an oxymoron. Use at your peril.

        • Furor Teutonicus

          What kind of glue are you sniffing?

    • Furor Teutonicus

      “With no constitutional authority to do so, Congress creates a separate form of government for the District of Columbia, a ten mile square parcel of land (see, Acts of the Forty-first Congress,” Section 34, Session III, chapters 61 and 62). ”

      Article I, Section 8:

      “To exercise exclusive legislation in all cases whatsoever, over such District (not exceeding ten miles square) as may, by cession of particular states, and the acceptance of Congress, become the seat of the government of the United States, and to exercise like authority over all places purchased by the consent of the legislature of the state in which the same shall be, for the erection of forts, magazines, arsenals, dockyards, and other needful buildings”


      “To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof.”

  • Name

    Here’s a link to an article about the Chicago Plan, as it was known:

    As the article relates, only two measures of the plan were adopted, deposit insurance and the separation of investment and retail banking. Of course, the latter measure was repealed in the late 90s and it wasn’t long before the resulting losses were too great for the former measure to cover, hence the bailouts.

    We are broke, and the people responsible are still in charge.

  • Esoteric Waffen Grenadier

    And who owns those banks? Oh yeah, members of Lloyd Blankenfield (Goldman-Sachs)’s Tribe of yahweh’s Chosen People.

    • mitchie124


    • info_bomber

      Those are just some of the part owners, the largest investor of the world’s central banks can be narrowed down to one name. A name that since the fall of Napoleon has had its hands at the levers of power and has never relinquished control, Rothschild.

  • Spiff2003

    Most people today have no clue what money is.. If you think it’s a number printed on a piece of paper or a digital number on a screen your WRONG!

  • PatFields

    All banknotes globally are loan principal. So, the whole world’s circulation of banknotes is accruing interest that has absolutely nowhere else to come from except new borrowing of it into existence. That’s the ‘banknote scheme’ in it’s most concise description. Banknotes accrue interest, compelling new borrowing, creating more banknotes at interest … in an eternal co-generation.

    Banknotes then, are not exactly ‘created from thin air’, but materialized credit demand, no different than a written and signed IOU is ‘created from thin air’.

    The problem is that since new borrowing is constantly inflationary, there has to be a ‘governor’ to slow down the inflation or allow it to race ahead in respectively bad or good economic environments. That’s why ‘central banks’ were dreamed up … to control interest rates and thus ‘govern’ the automated inflation at the scheme’s core.

    Still, at length, the … cumulative gross debt … exceeds the regulatory capacity of interest rate controls to create the interest funding. That’s where we’re at now … Terminal Debt Saturation … so the banks must conjure up more and more fantastical excuses for governments or banks themselves to ‘borrow’ that interest service funding into existence or cascading defaults begin circling the globe.

    The stupid idea ought to be entirely scrapped. Circulating credit is destructive of accurate Price Discovery which most effectively arises under the anciently dependable and consistant Hard Money scheme, best constructed in the Poly-Metallic model.

  • Tim Taylor

    Meh. Who really wants Harry Reid, Barack Obama, Nancy Pelosi, John Boehner, Dick Cheney and Eric Cantor printing all of our money? Printing money into existence through the hands of the political class is absurd. It’s not a wonder state actors love this idea.

    The answer is a monetary system that places the creation of money into the hands of citizens. Who, then by willful and intentional choice, share that which is needed with the state. That is the only monetary system that is not based on state violence or class. Otherwise, it’s time to put the antiquated control system of money to death. Then humanity can finally match labor and intellectual capital without any artificial constraints such as money.

    • jadan

      If the people are so politically inept that they cannot create and maintain a government to manage the public interest, there is no future for large groups of people. The republic designed in 1789 to guarantee individual liberty has become an oligarchy. The first order of business is to create a more democratic apparatus in which votes are correctly and transparently tallied. The people’s government cannot administer a public monetary system unless is it actually a people’s government, fully transparent.

      • Tim Taylor

        That certainly is true. But, you won’t reform this system to get what you desire. There will never be a people’s government based in Washington, DC. Ever. A far off, unaccountable bureaucracy is what we fought to rid ourselves of. You cannot create enlightenment principles through a strong central state government. It’s inconsistent with the laws of nature and natural rights.

        The original Enlightenment principles were that people were better equipped than government to make decisions about their own lives. That was manifested in the Articles of Confederation that pushed decision-making down the the individual and his or her local community. People’s government is self-rule. Not electing a king in Washington to rule by decree. Or, by having a Washington politician decree a broad, sweeping action that impacts localities in many different and unintended ways.

        Enlightenment principles are to give the power, including the power to coin money, to the people. The Articles of Confederation were overturned by state actors. This because those very actors weren’t taken seriously by European state actors because the AoC granted them no real power. The AoC neutered the state and empowered self-rule. So, it was overturned because the Washington aristocracy soon learned that in matters of the state, they needed more power. That power was stolen from the people and the end result was an affront to the basic principles under which the American Revolution was fought.

        There is a finite amount of power in this world. It’s either granted to you, by yourself, or you are going to grant it to a class-based political structure. Which will it be? You seem to be arguing for your own enslavement. The people can and will never rule with an all-powerful central state. And, in fact, American history clearly proves that point. Since the passage of the Constitution, we have been capitalist and political class slaves. It doesn’t matter if that was 1800, 1900 or 2000. The only way people have ever escaped the power of a central state was to push west where its power had not yet congealed.

        Once the AoC were overturned, the oligarchy was guaranteed. If you believe this is some recent occurrence, you aren’t yet ready to wake up.

  • Ghost of John J. McCloy

    It’s called “fractional banking” the biggest con job in human history. In 1971 when Nixon ended not the gold backed dollar but the silver certificates? Doomed our dollar to losing huge value. My theory on why diver certificates ended is the corporate banker crooks created the perfect war-Vietnam to steal huge money which caused inflation so great the other Central banks asked for the silver instead of keeping the paper. Well the Federal Reserve Note is backed by something-oil. It’s the Petrodollar and everything priced in dollars relates to whatever the global oil prices are. WTI, CWS, Brent. Stocks crashed in 2008 and bottomed when???? When the price of oil did! March 2009. Then it was buy time. Rockefeller boys have run things for quite awhile behind the scene.

    • Gordon Johnson

      In Vietnam the US spent gold it did not have and printed the difference.
      De Gaul in France caught on and demanded gold exchange.

      When the US hadn’t the gold to redeem the printed currency and debts – they stopped redeeming, and the gold window was closed.

      The fraud involved is the confusion between similar but different terms, “Currency” and “Money”.

      Currency is the medium of exchange. Money is the marketable store of value.

      The dollar, every national currency, and most all of the crypto currencies so far are the first. Gold and Silver are the second.

      Productivity is wealth. The money nature provided is the only money that can’t easily be forged by the unscrupulous (whether private person or government entity).

      If you trust your wealth to currency you will find it mostly gone over time.
      If you trust your wealth to money – you will find the value of your labors increases over time.

      Currency exists as separate from money, always and everywhere, for at least one of two reasons: So someone can get something for nothing, or alternately – to increase portability.

  • Lorin Chane Partain

    We had a currency issued by the state, the Continental. It was worse then what we have now. What we need is a gold coin system as specified in the Constitution, and nothing short of it. We need a money that is real, honest, and not manipulated.

    • joebhed

      The only problem with the Continental was its ease of conttfeiting.
      Which the Brits did to five times our correct issuance.
      You should read a little history.
      There is no gold coin system for US currency specified in the Constitution.

      Oh, and yeah, there was no problem when we were on the gold standard, right.
      ‘Crash of ’29 like’.

      • It was easily counterfeited, but it was also easily printed by Congress.

        • joebhed

          The Chapter in Zarlenga’s “The Lost Science of Money” on the Continental documents that counterfeiting was done at five hundred percent of Guv printing.
          Guv printed Greenbacks in the exact quantity authorized, and they stayed in circulation at par for 140 years.

          • The quantity authorized by Congress was not based on market need but on the need of Congress to raise revenue. To say that Congress only printed what Congress authorized is circular logic. While true, it misses the point. They printed too much.

          • joebhed

            The need of the Congress to raise revenue for legitimate public purpose financing is what we call a ‘market need’ in the public sector of the economy.

            There was a market need in the public sector to finance the War, and the banks were willing to finance that “market” need at usurious (24 to 36 percent) rates of lending.

            The quantity authorized by Congress was exactly what was issued and it was spent only on the authorized programs.

            You have a forsaken understanding of circular logic so stop throwing words around that don’t connect.

            Again. Read Zarlenga’s “The Lost Science of Money”, and learn about actual public money experiences.

            They did not print ‘too much’. And the Greenback’s perpetual circulation(*) has brought the added benefits over the generations of having a circulating medium not dependent upon debt.

            Of course Democrat Bill Clinton and Secy. Rubin put an end to the Greenback’s longevity by refusing to print them as needed.

            Greenbacks !
            Bring ’em back..

          • The idea that the public sector of the economy is somehow in any way a market is nonsense. It is all politics all the time and at every era. What you are saying about Congress is true to this day. Apparently in your world Congress does not frivolously spend money since it goes to what they say it should go to. No way that their judgement is impaired in any way at all. That can’t be possible. The rest of us live in a different reality then you do.

      • Also, the idea that there is no gold coin system in the Constitution is provably false. The clause “no state shall make anything a tender but gold and silver” specifically authorizes exactly that, and what is more is that states like Utah and Texas have already begin implementing said authorization.

        • joebhed

          A hearty, “so what?”.

          If you start with monetary ‘sovereignty’, then money becomes a national system for economic exchange.
          States are limited to, rather than authorized to, do anything… using those two metals, but we have seen none in operation after a couple hundred years. Other states are also in consideration, but, so what?
          States would need to make state ‘money’ more scarce by purchasing gold in quantity, so a drag on the state economy. Buy all the gold you want. What good does it do? Can’t buy a fire truck with it.

          Changes nothing in the national economy where we all live, work and spend.
          But, hey, good luck Utes and Tex.

          • Money is NOT a national system, it is a market system. It is nothing more then a medium of exchange and there was a long period of time in history where it was not nationalized but rather privatized. Banks issued currency, privately owned mints issued coins. Lots of firms were in the business of it. So as the Federal Notes become worth less and less and eventually worthless the state coins will circulate and become used as money. The systems to do this are already being put in place and not just Utah and Texas, but nine other states are considering similar legislation. And yes states are limited, but also authorized. A statement “nothing but” is both a limit and an authorization.

          • joebhed

            Good night.
            Monetary Sovereignty.
            Look it up.
            Good night.

          • I did look it up and according to Ludwig Von Mises who literally wrote the book “The Theory of Money and Credit” money is nothing more then the means of exchange. That it has been nationalized is a recent historical phenomena.

      • Gold standards do not crate crashes, fractional banking does.

        • joebhed

          Define ‘crashes’.
          Gold sure doesn’t prevent any crashes.
          We were on gold in the ’29 Crash.
          Gold causes deflationary busts in the economy..
          Fractional reserve banking causes ever-widening booms and busts and should be abandoned at the earliest possible opportunity…. for sure.

          • Fractional reserve banking is the issuing a more paper receipts for gold then there is actual gold in the bank. Outlaw that practice and there will be no more “panics”. The Federal Reserve inflates the currency and that boom generated inevitably results in a crash since there are more claims to property then actual property.

            If banks were required to practice 100% reserves then there would be no more bank driven crashes.

          • joebhed

            Fair enough on all of that.
            But if the banks can’t lend against fractional deposits, then they can’t create new money.
            So who is going to step in and maintain some stability in the money and finance system, by providing new money to match new growth?
            If its nobody, then , zero.
            if it ain’t the Congress’ determination, then, why not?

          • “New” money is not created in a metal system it is mined. Secondly the idea that money creation is a good or necessary thing is wrong. Once there is enough money in circulation to meet the needs of circulation itself any amount will do. If demand goes up the value of each piece of money will increase, if the demand for money decreases then the value of each will go down. Money, like all other commodities will rise and fall and trend toward equilibrium just like any other product on a free market.

            Second banks can still lend with 100% reserves they must merely disclose to depositors that their deposits are subject to lending and are not available again until the loan is paid back. It’s called honesty. The current practice of borrowing short and lending long is the problem. You have to coordinate the exceptions of depositors with the obligations of debtors to repay. Checking accounts for example would probably never lend out money from those accounts, but CDs and other timed deposits would be. Interest rates would adjust according to the supply of money to lend vs. the demand for loans. A free market interest rate that reflects actual savings in the system for lending with full consent by the depositors. Well, hell’s bells. Tell me how a panic can ensue with such system. I can not. While some percentage of loans can and will go bad, that is an issue of individual mismanagement. There can be no systemic busts as we see now.

  • Captain_Skin

    Who cares? The banks are the walking dead. Crypto-currencies are the future

  • Roy

    Remember also that credit cards and especially the VAT system are also contributing massively to creation of money out of thin air – all this causes inflationary effects.

  • People create money out of thin air every day. Checks are money creation. Signing the Visa voucher is money creation. Ordering phone service is money creation.
    It’s not exclusive to the Fed or the government.
    No one is compelled to take Federal Reserve Notes except creditors whose debtors tender the notes for the discharge of debt.
    Even that is debatable.
    Not sure if it has been ever litigated in court in a suit for non-payment.
    My gut instinct tells me the courts (at least at the State level) can not compel acceptance of the promises to pay from a specific third party.
    That would make a secret beneficiary to the contract when they have no interest and have contributed no value.

  • Exactly, usury is the root cause of our lack of prosperity and the huge imbalance between the rich and poor. We (and our representatives) have been suckered in over time to accept that borrowing from central banks with interest and from local banks at interest are ‘just the way things are’. We have been had, it’s the biggest con ever put on mankind.
    Nothing will change within these present systems, we need a clean sweep, a new system which works for everyone and it is far simpler than most would imagine.
    I have ideas, I have written a short ebook about a new way called The Organic Economy.
    The ebook is free and downloadable as a pdf at
    Get some new ideas, help spread the word and plant the seeds of a new way forward!




  • Gordon Johnson

    “Money” isn’t the problem.
    “Money-For-Nothing” is the problem.

    As long as you accept money that is created by man, not nature, you may change one overseer for an other, but you’ll never get off this plantation.

  • Ryan

    Hell yes!

  • Walt

    How mainstream is it really though? Only as mainstream as the TV outlets let it become….

  • Voluntaryist

    So we need the Govt that creates (counterfeits) money out of thin air to ban the bank it created? The Federal Reserve was created though a fascistic partnership between Govt and bankers. Without the power of Govt the Federal Reserve could not exist nor would fractional reserve banking be tolerated by bank customers. Govt is the real monopoly behind, and empowering, all other monopolies.

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  • M M

    The west has always been creating money out of nothing. And using that money to enslave others in order to rule the world. ”The word Honesty” does not exist in the their dictionary.
    And mostly jews have been behind this scam. And still are. But it’s ending now. Because Brics has been established to fight falsehood of the west and to burn the snake hole for good.

  • Dr Mindbender

    Money is Just a Tool to enslave People. People fall for it; therefore, it works. Now, what people do not comprehend is that debts and debt can be forgiven. All debt can be sacrificed. This would be necessary to restart. However, you see, the bankers forgave their debts, but they will not forgive YOUR debts!

    The Funny, None of you are willing to Fight! So … More will Come.