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Banks Creating Money

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  • mn_chicago
    Monday 2 October 2006 According to Federal Reserve publications, when money is deposited into a bank, the bank can increase its liabilities and issue
    Message 1 of 4 , Oct 2, 2006
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      Monday 2 October 2006

      According to Federal Reserve publications, when money is deposited
      into a bank, the bank can increase its liabilities and issue
      "checkbook money." The existence of checkbook money arises from a
      computer entry. It is "created" just like that.

      FRBank of NY "I Bet You Thought" publication, p 5, "...money does not
      have to be issued by the government or be in any special form."

      Article 1, Section 16 of the constitution of the State of Illinois:

      "No...law impairing the obligation of contracts or making an
      irrevocable grant of special privileges or immunities shall be
      passed."

      I cannot issue a check (if I had a checking account) without first
      having money on deposit in the account. Yet, banks do it all the
      time, via creating "checkbook" money...not legal tender, not lawful
      money.

      Sounds like a grant of a special privilege to me...of the federal
      kind.

      State law trumps federal law...each state being sovereign with the
      guarantee of a Republic form of government.

      In Illinois, at least, shouldn't banks be prohibited from the special
      privilege of issuing, what is in effect, counterfeit money, a
      deception, that which congress is not to allow?

      Am I missing something in this impromptu thought?

      ---

      One other question:

      Does "pay US$any amount" in a contract mean or by law include FRNs?
    • Faith Farm
      You can do a search for Modern Money Mechanics, a publication from the Federal Reserve. Here is a link to one source: http://landru.i-link-2.net/monques/
      Message 2 of 4 , Oct 3, 2006
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        You can do a search for Modern Money Mechanics, a publication from the Federal Reserve.


        It will be a PDF file.  Good reading.

        There is no scam.  They explain in there exactly what they are doing and how it's done.

        On Oct 2, 2006, at 12:44 PM, mn_chicago wrote:

        According to Federal Reserve publications, when money is deposited

        into a bank, the bank can increase its liabilities and issue

        "checkbook money."  The existence of checkbook money arises from a

        computer entry.  It is "created" just like that.



        In our Lord's Service,

        Tim Kiley, caretaker, Faith Farm

        "It ain't what ya don't know that hurts ya. What really puts a hurtin' on ya is what ya knows for sure, that just ain't so." -- Uncle Remus

        In 1846, Henry David Thoreau, famous for his essay on "Civil Disobedience" was put in prison for refusing to pay taxes, based upon his principles. When his friend, Ralph Waldo Emerson came to prison to visit him he asked: "What are you doing in there?" Thoreau replied indignantly:  "What are you doing out there?"


      • Joy Metcalf
        So because they explain what and how they re doing it, it s not a scam? If you or I tried to write a check with nothing in the bank, that would be called
        Message 3 of 4 , Oct 3, 2006
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          So because they explain what and how they're doing it, it's not a scam?  If you or I tried to write a check with nothing in the bank, that would be called fraud.  I fail to see how this is different.

          OTOH, it's kind of like when one person takes money from another without their consent, that's theft; but when the government does it, it's called taxes.

          At 08:00 PM 10/3/2006 -0400, you wrote:
          There is no scam.  They explain in there exactly what they are doing and how it's done.


          Joy Metcalf   rosawoodsii@...

          "A government under the U.S. Constitution, to paraphrase columnist Joseph Sobran, would be a radical improvement over the one we have today.­Las Vegas Review Journal





















        • Michael Noonan
          ... I am familiar with Modern Money Mechanics, but the thrust of my post was questioning the legitimacy of banks being able to create checkbook money. ... from
          Message 4 of 4 , Oct 5, 2006
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            --- Faith Farm <faithfarm@...> wrote:

            > You can do a search for Modern Money Mechanics, a
            > publication from
            > the Federal Reserve.

            I am familiar with Modern Money Mechanics, but the
            thrust of my post was questioning the legitimacy of
            banks being able to create checkbook money.

            >In Illinois, at least, shouldn't banks be prohibited
            from
            >the special privilege of issuing, what is in effect,
            >counterfeit money, a deception, that which congress
            >is not to allow?

            >Am I missing something in this impromptu thought?

            Scam? Absolutely. More appropriately, fraud. Even
            closer, with any kind of loan from a bank, plus credit
            cards, they all entail breach of contract.


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