Chapter 6 References

Congressman Wright Patman said in the context of government debt:

When we talk about a debt of a certain size we should double the amount if we want to keep in mind what will actually have to be paid before t:l).e debt is liquidated. This amount of 100 percent is due to the interest charges. I am not opposed to individuals and corporations paying interest. They should pay interest for the use of money that they hire from other people, but when our Federal Government, that has the exclusive power to create money, creates that money and then goes into the open market and borrows it and pays interest for the use of its own money, it occurs to me that that is going too far.

... 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.

One common misconception is that banks act simply as intermediaries lending out the deposits that savers place with them.

This description of money creation contrasts with the notion that banks can only lend out pre-existing money, outlined in the previous section. Bank deposits are simply a record of how much the bank itself owes its customers. So they are a liability of the bank, not an asset that could be lent out. A related misconception is that banks can lend out their reserves.

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

Congressional Representative Wright Patman in the context of interest relative to the original loan amount:

Mr. Speaker, our Government debt at this time is approximately $50,000,000,000. By the time that is paid it will aggregate $100,000,000,000. When we talk about a debt of a certain size we should double the amount if we want to keep in mind what will actually have to be paid before the debt is liquidated. This amount of 100 percent is due to the interest charges.

We’ll create money from nothing, loan it to the government, and charge interest. Legal counterfeiting my friends.

A video by Opportunity Cost on X from Aug 06 2025.

In common law jurisdictions, a misrepresentation is a false or misleading statement of fact made during negotiations by one party to another, the statement then inducing that other party to enter into a contract.

Racketeering is a type of organized crime in which the perpetrators set up a coercive, fraudulent, extortionary, or otherwise illegal coordinated scheme or operation (a "racket") to repeatedly or consistently collect a profit.