MUST WATCH: Money Masters - How the banks create the world’s money
Just as I meant to go to bed last night, I somehow ran across the Google video:
I ended up watching the entire 3 hr 35 min movie. I found it to be fascinating. It was like watching a summary of Web of Debt and it was great to have some pictures to go with all with all the names in the book. I definitely recommend reading the book AND watching this video.
An excellent FAQ: http://www.themoneymasters.com/faqs.htm
And the proposed monetary reform: http://www.themoneymasters.com/mra.htm
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Sec. 4. ONE HUNDRED PERCENT (100%) RESERVE REQUIREMENT.
Section 19(b)(2)(A-D) of the Federal Reserve Act is hereby amended to raise the Reserve Requirement ratio for financial institutions, in equal monthly increments of eight and one-half percent (8.5%), to one hundred percent (100%), during the said transition period. No existing reserve requirements shall be reduced, but shall be increased as the overall Reserve Requirement ratio incremental increase surpasses them. The initial minimum overall Reserve Requirement ratio shall be fixed at eight and one-half percent (8.5%) for all accounts, effective in one month. United States Notes, Federal Reserve Notes, Treasury Deposits and Federal Reserve Deposits shall be included in Reserve calculations in the transition period. No waivers or exemptions to this section may be granted, and any in existence are hereby repealed.2
Sec. 5. RETIRING THE NATIONAL DEBT.
The Secretary of the Treasury is hereby authorized and directed to purchase, in open market operations or otherwise, all outstanding Federal Debt held by the public, with United States Notes; thereby the net National Debt is to be completely retired and replaced with United States Notes.3 Treasury Deposits are to be created for intra-U.S. government debt in quantity sufficient to extinguish the remaining National Debt.
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It seems like everybody agrees with those two sections at least in principle. So WHY is it not done?
I just checked Ron Paul’s http://www.ronpaul2008.com/ and there’s NOTHING about monetary reform. I looked up his “issues” and read http://www.ronpaul2008.com/issues/debt-and-taxes/. Paul carefully AVOIDS mentioning that that bankers are frauds. He claims that the GOVERNMENT is stealing. No, he’s NOT that stupid, just bought and paid for.
Ever wonder why Oprah isn’t talking about monetary reform? Why none of the business news reporters talk about it?
I can’t turn on NPR without hearing some report on the economic crisis, but NOBODY mentions how the banks defraud us and monetary reform.
Not even Alex Jones is talking about monetary reform. Gun talk and immigrant paranoia are much more sexy / profitable, appeal to the idiots who will buy their 1 year food supply and colon cleanser from his advertisers.
They NEVER talk about monetary reform.
On the other hand, search Google and there are TONS of links to videos and sites about the bankers’ fraud.
Modern Money Mechanics, A Workbook on Bank Reserves and Deposit Expansion by the Federal Reserve Bank of Chicago.
The html version is at http://landru.i-link-2.net/monques/mmm2.html and here is a relevant excerpt:
Who Creates Money?
Changes in the quantity of money may originate with actions of the Federal Reserve System (the central bank), depository institutions (principally commercial banks), or the public. The major control, however, rests with the central bank.
The actual process of money creation takes place primarily in banks.(1) As noted earlier, checkable liabilities of banks are money. These liabilities are customers’ accounts. They increase when customers deposit currency and checks and when the proceeds of loans made by the banks are credited to borrowers’ accounts.
In the absence of legal reserve requirements, banks can build up deposits by increasing loans and investments so long as they keep enough currency on hand to redeem whatever amounts the holders of deposits want to convert into currency. This unique attribute of the banking business was discovered many centuries ago.
It started with goldsmiths. As early bankers, they initially provided safekeeping services, making a profit from vault storage fees for gold and coins deposited with them. People would redeem their “deposit receipts” whenever they needed gold or coins to purchase something, and physically take the gold or coins to the seller who, in turn, would deposit them for safekeeping, often with the same banker. Everyone soon found that it was a lot easier simply to use the deposit receipts directly as a means of payment. These receipts, which became known as notes, were acceptable as money since whoever held them could go to the banker and exchange them for metallic money.
Then, bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way, banks began to create money. More notes could be issued than the gold and coin on hand because only a portion of the notes outstanding would be presented for payment at any one time. Enough metallic money had to be kept on hand, of course, to redeem whatever volume of notes was presented for payment.
Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could “spend” by writing checks, thereby “printing” their own money.
I tried to get the .pdf at http://landru.i-link-2.net/monques/MMM.pdf, but the file won’t load for me. This is the best PROOF of the banks creating money I’ve seen yet. Unfortunately, they no longer provide this booklet to the public, for obvious reasons. But the cat is out of the bag and I hope that I’ll get the opportunity to conduct discovery.
Posted by Christine on 04/09/2008 at 01:45 AM
2008 Monetary Reform - stopping the bank fraud • (6) Comments • Permalink
The money multiply affect has been well known and taught in university economics for lord knows how long. It has been known, by anyone able to research or read, that banks create money due to reserve ratios. This cat has been released and died long ago. “Nothing new under the sun”, as Solomon once said.
Anyhow, I agree that is causes extreme inflationary issues. It *could* be wise to return to a gold standard in which this problem could be eliminated (aka 100% reserve). However, not likely, with quick credit and loans at peoples finger tips, that system would take centuries to correct.
“The money multiply affect has been well known and taught in university economics for lord knows how long.”
I wonder why all these university students find nothing wrong with the banks being able to create money out of nothing, while we can’t create the money to pay the interest.
Hello? Is anyone awake?
These highly educated people all love to be slaves to the bankers?
They love to pay taxes?
Why should the banks not have to pay for the use of the money like everybody else?
Low wholesale rates, no problem.
But it’s insane to allow the banks to create money while I can NOT create money.
Why can’t I create money too?
Yes, this is true, and most university professors love taxes as they are typically socialists, as are most in the education field(s), quite disturbing really.
But, the point of my mentioning this was to shed some light on the Money multiplier effect, and that its affects, both negative and “positive?” are discussed in depth in politically neutral economic classes. It is not really a hidden affect, however it is a discrete externality of the federal reserve requirements. What you WILL see discussed is adjustments to the bank reserve requirements and therefore interest rates etc. These are all related to the money supply market, which is controlled by supply and demand just like any other market. Therefore adjustments to supply will affect the demand for money, and the quantity demanded (point) can be thought of as the price of a loan,.. aka the interest rate agreed upon.
You, as an individual, cannot create money any more than you can enter the market for providing nuclear power reactors, without proper “big brother hand holding” as they are controlled markets. Obviously if everyone can create money, in a discrete way e.g. via percentage reserve holdings, the money supply and therefore interest rates would become highly volatile. This would lead to many other issues, obviously.
Is this reserve “inflater” the right way to do things? I have my doubts, but anyhow my profession is Computer Engineering, so I am not *exactly* qualified to say 
“You, as an individual, cannot create money any more than you can enter the market for providing nuclear power reactors, without proper “big brother hand holding” as they are controlled markets.”
FALSE.
Just like all the economists, you’re into the bla bla bla bla bla blabla blabla bla bla.
In fact, anybody can create money and local currencies have been very successful.
It’s beyond me that you’re completely satisfied with being a slave to the bankers.
I don’t understand how ANYONE can watch The Money Masters and NOT be outraged.
And especially being in computer engineering, I would expect you to comprehend the significance of nationalization of the banks and that we don’t need to pay any personal income tax if we stop handing over all our money to the bankers.
Could you maybe watch The Money Masters again and give this a sincere try?
STOP THINKING THAT YOU’RE STUPID!
It’s only very simple math. I know you can do it.
I think I’ve lost you there:
“But it’s insane to allow the banks to create money while I can NOT create money. Why can’t I create money too? “
and then…
“In fact, anybody can create money and local currencies have been very successful. “
Contridictory, statements I’d think. Anyhow, I mean US currency creation is controlled. It is silly to dismiss this as truth. I am not about to create a confederate currency and dismiss my house from the union LOL 
, but I can see your point.
Please recognize when someone is not arguing with you. Your statements should be centered on proofs… if proofs and scientific discussions are considered “bla bla bla”, I don’t think your arguments will hold much water in the real world.
Kyle, with regards the creation of money, of course the bankers/government don’t want us to create dollars because all the wealth is to go to the bankers. There is no LEGAL or ANY reason to give the privilege to create dollars to the bankers.
PROOF is in the NUMBERS, not in BLA BLA BLA.
Why are you talking about inflation?
Do you think we have LESS inflation when a bank creates the money than when the government creates the money?
I think not. Do you have a different view?
If not, WHY are you talking about inflation and reserve requirements?
This is a matter of life and death for many MILLIONS of people and deserves SERIOUS discussion.
And now that the common good bank is really going to happen, ultimately with a complementary currency, you don’t need to create your own currency. Although regional currencies definitely stimulate the local economy.
It’s one thing to admit that the politicians are too corrupt and scared to take on the bankers and that we can not change the banking system, but there’s no point to fall into their trap and discuss completely irrelevant issues.
And at least we can support member owned and truly democratic common good banks and stop being slaves to the bankers.
http://creditsuit.org/credit.php/blog/comments/watch_the_common_good_bank_slideshow_and_sign_up/
