BANKS CREATE MONEY OUT OF THIN AIR
BANKS CAN CREATE MONEY WHENEVER THEY WANT
Most people have to work hard to earn their money, but the Federal Reserve and its member banks can create money whenever they want. Banks simply spend money into existence. When the Federal Reserve buys government securities, for example, it simply credits the seller’s account with money that didn’t exist beforehand. This new money is then loaned and re-deposited at banks until it becomes 10 times the original amount.
HOW IS IT POSSIBLE?
This is possible because of what’s referred to as fractional reserve lending – banks in the U.S. are only required to keep 10% of their deposits on reserve. So if you deposit $10 into the bank, they set aside 10%, or $1, and loan out the remaining $9. Over time the initial deposit of $10 becomes $100.
This is what banks refer to as the "multiplier effect" and it is the primary way money is created. Under this fractional reserve scheme we inevitably become debt slaves to a ruling class of financial elite.
EVERYWHERE IN THE WORLD THE SYSTEM IS SIMILAR.