The Chicago Plan Revisited
… under the present system banks do not have to wait for depositors to appear and make funds available before they can on-lend, or intermediate, those funds.
Rather, they create their own funds, deposits, in the act of lending.
This fact can be verified in the description of the money creation system in many central bank statements, and it is obvious to anybody who has ever lent money and created the resulting book entries.
Link to the Chicago Plan Revisited:
Banks Lend Money They Don't Have
Video: Why the whole banking system is a scam - Godfrey Bloom MEP
Banks can lend money that they don’t actually have. It’s a criminal scandal and it’s been going on for too long
Federal Reserve Bank of Dallas
Money, Banking and Monetary Policy, a book by the Federal Reserve Bank of Dallas:
Money makes it possible for people to exchange goods and services without having to rely on a system of bartering.
Banking provides a means for savers to lend their money to borrowers and earn interest in the process.
Banks actually “create” money when they lend it.
Magic Money Computers
Video: Elon Uncut - The Complete Interview | Verdict Ep. 216
Magic Money Computer: Any computer which can just make money out of thin air… It just issues payments…They just send money out of nothing.
Federal Reserve Bank of New York
Federal Reserve Bank of Chicago
What is a Promissory Note?
A promissory note is a financial instrument that contains a written promise by one party (the note's issuer or maker) to pay another party (the note's payee) a definite sum of money, either on demand or at a specified future date.
More on the Investopedia website.
President James Madison on Borrowing
February 2, 1791, Volume 2, Pages 1947 - 1948 — Annals of Congress. 1st Congress (March 4, 1789 to March 3, 1791)
The obvious meaning of the power to borrow money, is that of accepting it from, and stipulating payment to those who are able and willing to lend.
Fourth President of the United States, Signatory to the Constitution and Co-Author of the Federalist Papers.
Federal Reserve Board Announcement - Reserve Requirements
As announced on March 15, 2020, [Federal Reserve] Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.
From the Federal Reserve website. Also from the same website:
The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system.
Federal Reserve Act 1913
Upon the deposit with the Treasurer of the United States of bonds so purchased, or any bonds with the circulating privilege acquired under section four of this Act, any Federal reserve bank making such deposit in the manner provided by existing law, shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, registered and countersigned as provided by law, equal in amount to the par value of the bonds so deposited.
Upon the filing of such certificate with the Comptroller of the Currency as aforesaid, the said Federal reserve bank shall become a body corporate and as such, and in the name designated in such organization certificate, shall have power—First. To adopt and use a corporate seal.
Link to the original Act passed in 1913:
President Andrew Jackson's Veto
Veto message from President Andrew Jackson, returning the Bank Bill, with his objections to the Senate, July 10, 1832:
It is maintained by the advocates of the Bank, that its constitutionality in all its features ought to be considered as settled by precedent, and by the decision of the Supreme Court. To this conclusion, I cannot assent.—Mere precedent is a dangerous source of authority, and should not be reguarded as deciding questions of constitutional power, except where the acquiescence of the people and the States can be considered as well settled.
Bank of England
Two Quarterly Bulletins. The first from 2014 Q1:
Rather than banks lending out deposits that are placed with them, the act of lending creates deposits… the reverse of the sequence typically described in textbooks.
Money creation in practice differs from some popular misconceptions—banks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits.
The second Quarterly Bulletin 2008 Q1 | Volume 48 No. 1:
banks extend credit by creating money.
Bank of Canada
Mr Landeryou: Yes, but I cannot get the question over to you. I am not suggesting that there is not a $1,000 bond behind the deposit. I may be in the bank. But in the first instance, when the government delivers a $1,000 bond to the bank what does the bank use to purchase it with? Is that the creation of additional money?
Mr Towers: It is the creation of additional money.
Mr Landeryou: And it is costless to the bank the moment they create it. I am not talking about where they pay interest on deposits, but at the moment when they create it?
Parliament of Canada. House of Commons Committees, 18th Parliament, 4th Session. Standing Committee on Banking and Commerce, Minutes of Proceedings and Evidence Respecting the Bank of Canada, Ottawa, J.O. Patenaude, I.S.O., Printer to the King's Most Excellent Majesty, 1939.
See more here.
What is a Government Bond?
A government bond is a debt security issued by a government to support government spending and obligations… Government bonds issued by a federal government may also be known as sovereign debt.
Full article from Investopedia.
Reserve Bank of Australia
Through quantitative easing, the Reserve Bank of Australia purchases government bonds and other financial assets expanding its balance sheet and increasing the money supply.
Full article on the Supermoney website.
Quantitative Easing / Counterfeiting
Quantitative easing (QE) is a monetary policy used by central banks, such as the Federal Reserve, to stimulate economic growth by purchasing securities and increasing the money supply.
Full article from Investopedia.
Alternatively, from Godfrey Bloom:
We have counterfeiting, sometimes called quantitative easing, but counterfeiting by any other name, the artificial printing of money which if any ordinary person did they’d go to prison for a very long time. And yet governments and central banks do it all the time.
TWO Parliaments - Commonwealth of Australia
The legislative power of the Commonwealth shall be vested in a Legislative Federal Parliament, which shall consist of the Queen, a Senate, and a House power. of Representatives, and which is herein-after called “The Parliament,"or “The Parliament of the Commonwealth".
Learn more about the TWO parliaments in the Commonwealth of Australia and the Freedom of Information request.
Nonbank Financial Institutions
In the context of non banking institutions capable of providing finance:
Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs)provide bank-like services but operate without a banking license. Sometimes called Shadow Banks for their easy money lending that led to the 2008 financial crisis.
- Casinos and card clubs
- Securities and commodities firms (e.g., brokers/dealers, investment advisers, mutual funds, hedge funds, or commodity traders)
- Money services businesses (MSB)
- Insurance companies
- Loan or finance companies
- Operators of credit card systems
Law Courts Limited
The 'Act' from the 'Parliament of Australia' creating Law Courts Limited. Constitution for Law Courts Limited.
Corporations Act - Providing Finance
Definition of Providing Finance:
"providing finance" means:
(a) lending money; or
(b) giving guarantees or security for loans made by someone else; or
(c) drawing, accepting, indorsing, negotiating or discounting a bill of exchange, cheque, payment order or promissory note so that someone can obtain funds.
Professor Richard Werner
As interviewed by Russia Today; The Finance Curse. Video below.
Study within the International Review of Financial Analysis - Can banks individually create money out of nothing? — The theories and the empirical evidence:
Doublethink - George Orwell
Relevant to 'banks create money when they lend it' and 'libraries create books when they lend them.'
Doublethink is a term from George Orwell’s 1984 novel. Doublethink is a process of indoctrination in which subjects are expected to simultaneously accept two conflicting beliefs as true - often at odds with their own memory or sense of reality.