Let’s Explain the Creation of Money. Learn How Bankers Create Money Out of Thin Air and Use it to Steal Real Wealth From the People.

We’ve written extensively on our site about money creation and the frauds of the Federal Reserve.

Recently, we found a great passage in The Legalized Crime of Banking and a Constitutional Remedy, by Silas Walter Adams, in which he very simply helps to explain the creation of money.

First, Adams offers us a quote from a booklet published by the Federal Reserve itself in 1939 called The Federal Reserve System – Its Purposes and Functions, (page 70):

Let’s take a look.

Explain the Creation of Money: From the Fed Itself

”Suppose that the Reserve authorities were of the opinion that more loans might advantageously (to bankers) be made and the bank should be provided with additional reserves so that it could make them.

“Suppose they purchased $20,000,000 of securities (corporation stock) in the open market.

“The sellers of the stock would deposit in the commercial bank the $20 million cheque (drawn against no deposits – Reserve authorities created $20 million by writing the cheque) they receive in payment.

“The commercial bank in turn would deposit the cheque in its reserve account at its Reserve Bank.

“Having the $20,000,000 additional reserves, the commercial bank, by making loans (or buying securities), could increase its deposits to five times as much, or $100,000,000 the $20 million being the 20% reserves required against the $100 million of new deposits.”

Explain the Creation of Money: The Five Steps

Analysing this story we find there are five steps in the process of creating bank deposits:

1. Reserve authorities buy corporation securities or Government Bonds, giving to the corporation a cheque against no funds in payment.
2. The corporation deposits the cheque in its home bank, creating new bank deposits.
3. The bank re-deposits it in its Reserve Bank, creating new bank reserves which are credited to its reserve account on the Reserve Bank’s books.
4. The commercial bank enters on its books as bank credit a sum five times its reserves on Reserve books.
5. The bank creates the $100 million new bank deposits by making loans to itscustomers or by buying investment obligations, in above example.

Explain the Creation of Money: Adams’ Summary

Summarizing, we reveal these astounding figures:

• Corporation securities offering 6% $ 20 million
• Reserve cheque in payment. 20 million
• New bank deposits to corporation. 20 million
• New bank reserves, credit of bank. 20 million
• New bank credits on its books. 100 million
• New bank deposits to credit of cust. 100 million
• New active monetary values. $140 million

Explain the Creation of Money: Banksters Take Our Assets

“In the process the banks created $120 million bank deposits, came into ownership of the $20 million corporation stock and $100 million in personal notes, mortgages, bonds etc.

“They will re-sell the corporation stock and add the $20 million bank deposits they receive for them to their profit account, for the stock did not cost them a thin dime.

“In due course of time the bankers get bank deposits for all loans and will re-sell all securities, and add this $100 million plus interest to their account, making a total of $120 million plus interest and dividends the bankers add to their profit accounts when the cycle is completed.

“The $20 million Reserve cheque, the $20 million corporation stock, $20 million bank reserves, the $100 million bank credit-none of it cost the bankers one thin dime; therefore the $100 million in notes, mortgages, etc., which they bought with the bank credit cost them not one thin dime.

“Then the $120 million profit they added to their account cost them not one thin dime.

“Their customers got the use of the $100 million at heavy interest cost, for just a short time, then it became the permanent assets of the bankers.

“(Emphasis added by Truth-It) The whole process was just simple bookkeeping.

“That’s how Sir Josiah Stamp meant bankers would with the flick of a pen create enough money to buy the world back again!”

Explain the Creation of Money: Josiah Stamp Quote

Here is the Sir Josiah Stamp quote Adams refers to above. Stamp said this in the 1920’s while giving an informal talk in Austin to about 150 professors of the University of Texas:

“Banking was conceived in iniquity and born in sin… Bankers own the Earth.

“Take it away from them but leave them the power to create money, and, with a flick of the pen, they will create enough money to buy it back again…

“Take thisgreat power away from them and all great fortunes like mine will disappear,and they ought to disappear, for then this would be a better and a happier world tolive in…

“My sons are well educated; they should not hesitate to take their places in the ranks of humanity, and forge their own fortunes…

“BUT, if you want tocontinue to be the slaves of bankers and pay the cost of your own slavery, then letbankers continue to create money and control Credit.’

Explain the Creation of Money: Americans Fund Own Demise

When we explain the creation of money in this simple manner, it should be clear that money creation is a key to totalitarian Globalization (New World Order).

More education on this is available at Federal Reserve banking history and Money Creation.

Once you understand that the elite cabal funds its Global Community programs (the ones our corrupt officials in the U.S. Government follow obediently) through illegal taxation and fraudulent debt creation, you can begin to see that one solution is to go after that funding.

By blindly buying into federal taxes, a mountain of debt, and accepting the deceptive ways bankers explain the creation of money, Americans are unwittingly funding the elite and their totalitarian plans.

It doesn’t have to be this way. If the people are educated on the fraud, the fraud falls apart.

We suggest you allow Aaron Russo to educate you on the fraudulent tax issue.