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
3 comments
Read more...
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
2 comments
Read more...

Latest Articles

  • Joshua Haldeman (Elon Musk's Grandfather) and Douglas Social Credit
    Elon Musk's Canadian Grandfather was a big proponent of Douglas Social Credit as an anti-communist programme for monetary and financial reform. It would surely make getting to Mars a lot easier.
    Written on Wednesday, 11 September 2024 08:27 Read more...
  • Douglas Social Credit and the Categories of Constraint
    After a recent conversation with Arindam Basu, it occurs to me that there is yet another method of explaining the Douglas Social Credit approach to our financial and economic systems for the benefit of newcomers. This has to do with the notion of constraints. There are natural constraints, i.e., constraints that are built into the very nature of things and are of a physical or metaphysical nature, and then there are artificial constraints, i.e., constraints that arise merely because of arbitrary (or not so arbitrary) human conventions that can be, at least in principle, abandoned, replaced, or altered at will.
    Written on Monday, 09 September 2024 09:10 Read more...
  • The Right to Cash
    The global drive to eliminate physical money is well worth viewing in a wider context. As Russian scholar Andrey Fursov noted4: from as early as the 1960s, a section of the Western ruling class pressed for a 3D policy of deindustrialization, de-rationalisation and depopulation, to retain, and indeed, extend control over the general public. To these three, we can add a fourth ‘D’ - dematerialization, and the push for an all-digital currency is one example of this.
    Written on Tuesday, 11 June 2024 20:35 Read more...