6139008-History-of-Money

1972 Derek T. Lobley, BA (Econ) (1972), p. 50 under “THE CREATION OF CREDIT”: he explains mainly by figures how thebanks create credit. Economic History Made Simple (Ditto above). 1975 Bernard J. Smailes, BA, BSc (Econ), p.132. Hegives account of the goldsmiths’ credit creation followed by the banks doing the same. P. 135: “. . . the country‘s supplyof money was created by the commercial banks creating credit through the profitable cheque and overdraft system.”. [Ref- late 19th Century] Mastering Banking 1985 MacMillan Master Series. Desmond Whiting. P. 37, ch. 3.9 CREATION OFCREDIT: “Banks create credit by making loans. . .” The Economic System in the United Kingdom edited by Derek Morris,Oxford University Press, p. 127, 5.2.2.: “. . .If however, a customer obtains a bank loan the situation is different. Thiscreates deposits at the bank and represents an increase in the money supply.”.Economics 1986 Geoffrey Whitehead BSc (Econ). P. 363/4, ch. AN EXAMPLE OF CREDIT CREATION. He explains howbanks create credit using a diagram (28.1.) (Limited by policy) Basic Economics 1987 Frank Livesey, p. 28, ch. CREATIONOF CREDIT: “The primary function of banks is to accept deposits and make loans and investments of one kind or another.In this process of taking and investing deposits, banks increase the total amount of credit.”. Elements of Banking MadeSimple 1987 Julia Hoyle ACIB & G. Whitehead. P. 19, 2.6 ch. HOW THE BANKS CREATE MONEY: THE CREATION OFCREDIT. This section explains bank credit creation. P. 285 in Rapid Revision, 6: ‘Banking and the creation of credit,“Question 2. ‘Can a bank lend out only money which it has actually borrowed?’, Answer 2. ‘No, it can create credit’.”Elements of Banking 1989 F.E. Berry. revised by Gerald Klein, recommended by the Chartered Institute of Bankers P. 13:“. .not only are bank deposits money, created when bank customers pay sums into the bank, but banks themselves canbe said to create money when they agree to lend.” Money and Banking Made Simple 1982 Ken Hoyle BSc(Econ) &G.Whitehead. Heineman Publications. p. 6. THE CREATION OF CREDIT: “ . . . the whole process is usually called thecreation of credit or the creation of money.” Success in Elements of Banking. 1990 David Cox, Senior Lecturer in Banking,Worcester Technical College. 2.10 ch. HOW THE BANKS CREATE MONEY: “It has been told that every bank loan creates adeposit. . . Therefore in granting a loan or overdraft a new deposit has been created somewhere in the banking systemand its money stock increases.” Maurice Allais, 1988 Nobel Prize Winner in Economics: “In essence, the present creationof money, out of nothing, by the banking system is similar to the creation of money by counterfeiters, so rightlycondemned by law. In concrete terms, it leads to the same results.” J.K. Galbraith, 1975, in “Money, Whence It Came,Where It Went”, Penguin Books, London, p.29: “The process by which banks create money is so simple that the mind isrepelled.”What can we do about all this? Fortunately, viewed purely as a technical problem there's a way to fix the problem fairlyeasily, speedily, and without any serious financial problems. We can get our county totally out of debt in 1-2 years bysimply paying off U.S. bonds with debt-free U.S. Notes (or Treasury Department Deposits convertible to U.S. Notes) - justlike Lincoln issued. Of course, that by itself would create tremendous inflation, since our currency is presently multipliedby the fractional reserve banking system. But here's the ingenious solution advanced in part by Milton Friedman, andothers, to keep the money supply stable and avoid inflation and deflation while the debt is retired. As the Treasury buysup its bonds on the open market with U.S. Notes, the reserve requirements of your hometown local bank will beproportionally raised so the amount of money in circulation remains constant. As those holding bonds are paid off in U.S.Notes, they will deposit this money, thus making available the currency then needed by the banks to increase theirreserves. Once all the U.S. bonds. are replaced with U.S. Notes, banks will be at 100% reserve banking, instead of thefractional reserve system currently in use. From that point on, the former Fed buildings will only be needed as centralclearing houses for checks, and as vaults for U.S. Notes. The Federal Reserve Act will no longer be necessary, and couldbe repealed. Monetary power would be under government control. There would be no further creation or contraction ofmoney by banks. By doing it this way, our national debt can be paid off in a single year or so, and the Fed and fractionalreserve banking abolished without national bankruptcy, financial collapse, inflation or deflation, or any significant changein the way the average American goes about his business.To the average person, the primary difference would be that for the first time since the Federal Reserve Act was passed in1913, taxes would begin to go down and inflation would cease, preserving the value of their savings, wages and fixedincomes. Now there's a real national blessing for you, rather than for Hamilton's banker friends. Without their awfulmoney-creating power, the Money Changers would gradually lose their political control and clout. Of course, their massmedia control is another issue, but even it depends on their massive money-creating power. Now, let's take a look atthese proposals in more detail. Bill Still and McCormack (http://www.themoneymasters.com)have drafted a proposedMoney Reform Act as follows:1. Pay of the national debt with debt-free U.S. Notes (or Treasury department credits convertible to U.S. Notes). AsThomas Edison put it, if the U.S. can issue a dollar bond, it can issue a dollar bill. They both rest purely on the good faithand credit of the U.S. This amounts to a simple substitution of one type of government obligation for another. One bearsinterest, the other doesn't. Federal Reserve Notes could be used for this as well, but could not be printed after the Fed isabolished, as we propose, so we suggest using U.S. Notes instead, as Lincoln did.2. Abolish Fractional Reserve Banking. As the debt is paid off, the reserve requirements of all banks and financialinstitutions would be raised proportionally at the same time to absorb the new U.S. Notes and prevent inflation, whichwould be deposited and become the banks' increased reserves. At the end of the first year, or so, all of the national debtwould be paid, and we could start enjoying the benefits of full-reserve banking. The Fed would be obsolete, ananachronism. This same approach would work equally well in Canada, England and in virtually all debt-based, centralbank controlled economies.The Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 416