What is Money and How is it Created?

What is Money and How is it Created?

Money is generally created by central Banks like the Bank of England or the Federal Reserve Bank in the United States.

The Original Constitution for the United States stated that Congress was to mint the money and set the value of money in the United States.

However, in 1913 the Federal Reserve Act was passed. This act passed the authority to create money from congress over to the private consortium of banks collectively known as the Federal Reserve Bank.

The Federal Reserve Bank is pretty secretive about who it's owning banks or shareholders are. It has been determined that the "class A" stock in the Federal Reserve Bank are held by the following 8 institutions:

1. ROTHSCHILD BANKS OF LONDON AND BERLIN.

2. LAZARD BROTHERS BANK OF PARIS.

3. ISRAEL MOSES SEIF BANK OF ITALY.

4. WARBURG BANK OF HAMBURG AND AMSTERDAM.

5. LEHMAN BANK OF NEW YORK.

6. KUHN LOEB BANK OF NEW YORK.

7. CHASE MANHATTAN BANK OF NEW YORK.

8. GOLDMAN SACHS BANK OF NEW YORK.

The Remaining Stock is held by the Chemical Trust and the Rockefeller Trust. These stockholders hold Federal Government Obligations which amount to about $5 Trillion Dollars - The U.S. National Debt! Their annual profits from interest payments are over $200 Billion dollars per year!

Before the passage of the federal reserve act congress could print it's own treasury notes and use the money to pay for the cost of government. After the passage of this act congress had to borrow money from the privately owned Federal Reserve Bank at interest!

There are legal experts that maintain that the Federal Reserve Act is unconstitutional and therefore unlawful.

Although, the Chairman of the Federal Reserve Marketing Board is appointed by the president of the United States, the Federal Reserve Bank is otherwise independent of United States Government.

There have been numerous attempts by congress to pass legislation to have the General Accounting Office (GAO) audit the Federal Reserve Bank. All such attempts have failed, primarily because congress cannot force an audit on a private company.

The Federal Reserve Bank can order the U.S. Treasury to print a determined amount of Federal Reserve Notes and have the U.S. Mint deliver them for the cost of printing, which is a small fraction of the face value of the notes.

These Federal Reserve Notes are then lent into circulation by lending them either to congress or to the Federal Reserve Member banks.

Some economists point out that money lent into existence would be impossible to totally repay because only the principal was lent into circulation but the principal plus interest has to be paid back.