Banks Admit They Create Money When Making A Loan

In a post below about the book “The Creature From Jekyll Island”, the claim is made that banks create money when the lend. That the money for the loan is just poofed out of the air when you sign the loan documents.

A lot of people don’t believe that. I don’t blame them. How could our government give the money creation power over to banks? It’s just not possible that’s the way it really works!


Well, sometimes the banks or their masters ( the central banks) do come right out and say it, like the Bank Of England says right here in this PDF on their site…

This article explains how the majority of money in the modern economy is created by commercial
banks making loans.
If you read that, you’ll realize that not only do the bankers create the money in “our”(really their”) economic system, they do it with interest attached, and they don’t create the interest which of course means that more loans have to be made to create the money to pay the interest. Doesn’t that sound like a ponzi scheme to you?

The Creature That Controls Us All

I just found something on the web that’s very important.

What I found was this:

Full text* of The Creature from Jekyll Island by G. Edward Griffin

This is a very important book if you want to understand money, banking, the Fed, and why it seems the banks get bailed out and we, the people get ignored and destined to worse and worse circumstances.

I believe this is from the blurb of the hardcover edition. (I have a soft cover copy, so I don’t know)

Where does money come from? Where does it go? Who
makes it? The money magicians’ secrets are unveiled. Here is a
close look at their mirrors and smoke machines, the pulleys,
cogs, and wheels that create the grand illusion called money.

A boring subject? Just wait’ You’ll be hooked in five
minutes. Reads like a detective story- which it really is. But if s
all true. This book is about the most blatant scam of history. If s
all here: the cause of wars, boom-bust cycles, inflation, depres-
sion, prosperity. Your world view will definitely change.

Putting it quite simply: this may be the most important
book on world affairs you will ever read.

Here’s a teaser from the section about money:

There is a great mystique surrounding the nature of money. It is
generally regarded as beyond the understanding of mere mortals.
Questions of the origin of money or the mechanism of its creation
are seldom matters of public debate. We accept them as facts of life
which are beyond our sphere of control. Thus, in a nation which is
founded on the principle of government by the people, and which
assumes a high level of understanding among the electorate, the
people themselves have blocked out one of the most important
factors affecting, not only their government, but their personal lives
as well.

This attitude is not accidental, nor was it always so. There was a
time in the fairly recent past when the humble voter — even without
formal education — was well informed on money matters and
vitally concerned about their political implementation. In fact, as
we shall see in a later chapter, major elections were won or lost
depending on how candidates stood on the issue of a central bank.
It has been in the interest of the money mandarins, however, to
convince the public that, now, these issues are too complicated for
novices. Through the use of technical jargon and by hiding simple
reality inside a maze of bewildering procedures, they have caused
an understanding of the nature of money to fade from the public

If anybody gives it a read, please do me a favor and post your impressions in this thread. You don’t have to wait until you read the whole thing. If you have questions, please ask me. If you think it’s a lot of conspiracy theory crap, please post that also, I don’t bite.

*It seems to have been translated to text by machine. Pictures come out as gobbledygook and there are a few places I noticed that sections are missing. It doesn’t matter, there’s still plenty of stuff in the book that will open your mind to the scam we’re victims of, if you let it!


Religion and Money

I have a lot of beefs about religion and belief in supernatural beings. For instance, it helps promote war. In case anybody missed it, the war on Iraq was surreptitiously promoted as a “crusade” against those “Islamic terrorists”, and our rights are still being stripped in the name of “Islamic terrorism”. And that’s just the latest example of religion being used to promote war.

But my biggest problem with religion is that it conditions people to accept an unquestioning obedience to authority. How many times have you been told in answer to a question, “You must have faith” or “god works in mysterious ways”? Since beliefs in the supernatural are inherently based on flawed human “scripture” and let’s face it, not based in any physical reality, they kind of have to squelch independent thought, otherwise they wouldn’t have lasted this long. Does the name Galileo ring a bell? He had a problem with the Roman Catholic Church that Wikipedia euphemistically calls “Controversy over heliocentrism”. Uh yeah, they wanted to kill him for even suggesting that the Earth revolves around the Sun, as it actually happens to do, because their “Holy Book” claimed otherwise.

What the heck does religion have to do with money? Well, other than religions across the world have more money than god (that’s a pun), if they even think about it, most people seem to believe that government creates our money. Of course, that begs the question that if the government creates the money, how in the world is it that the US is $16 trillion in debt and growing? If the US government creates our money, why is the government is debt and where did these lenders get the money to loan the government in the first place? Have you ever thought about this? In the work-a-day world, probably not. It’s not taught in schools. You don’t hear about it in the media, except if you listen to some business news when they say “The Fed is using its balance sheet” and wonder what that means and go back to eating dinner or driving home.

What it means is the Federal Reserve is buying debt (the “asset” side of the balance sheet) by using money it created from nothing (the “liability” side of the balance sheet). They just type in some numbers into a computer and “buy” things like government bonds, and lately mortgage backed securities and other forms of debt. Where does the money come from? Why, they just “poof” it into existence. But that’s only 10% of the money supply, where does the rest come from? The answer is, commercial banks. They create the other 90% in the same way as the Fed, by loaning money to you and me (at interest) simply by placing your loan documents on the “asset” side of the ledger and writing the loan money into the “liabilities” side. They claim to be loaning out deposits, but yet claim you can always withdraw all your money from your account so how does that make sense? The truth of the matter is they create the money to loan you based solely on your promise to pay it back and charge you interest on it.

So like religion, where people believe without question ancient myths simply because they are, bluntly, brainwashed into it, so too does the money system we have only operate with your “confidence” because you have been programmed to not even raise questions about it, even when it is operating against your best interests and in the interests of the “experts”.   Religious leaders and bankers operate the same way, keeping you in the dark about their true motives, which are power and control.

The only way to strip these people of their inordinate power is to educate yourself. Educate yourself about the real basis and purpose of religion, and even more importantly, educate yourself about the mother of all Ponzi schemes, the fractional reserve banking money system.
Otherwise, you sentence yourself and your children to continued slavery for the benefit of others, others to whom power and profit and greed and control are the most important things. It’s time to wake up, people!



Yeah, I don’t like them, but at least I get a few bucks to keep my server up and running.



i’ve been learning about Node.js, which is basically Javascript on the server. You can write an entire website, including the web server itself with Node.js. This little file implements a web server and write out “Hello World”!

var http = require("http");

http.createServer(function(request, response) {
response.writeHead(200, {"Content-Type": "text/plain"});
response.write("Hello World");

After you’ve installed Node.js (see here for download: http://nodejs.org/download/ or you can use your favorite package manager) you run this file, open your broswer to http://yoursite.com:8888 and you’ll see the message. Pretty simple, huh?


Our Shared Predicament

Back in the day, I used to post a lot about peak oil, global warming, our pyramid scheme financial system and some other related things, but I stopped for a quite a while as most seemed to be not interested or at a loss for what to do. Well, most of what I was saying back then were trends happening or expected to happen and, as they say, time will tell. So I decided to sit back and let things happen for a while and see if what happened adheres to my expectations.

It seems that for, the most part, time is telling. Continue reading



We’re the first step in migrating from an old Plesk server to a new Linode server that I built from scratch. I feel more secure doing the dirty work on my own rather than letting Plesk do it. As you an see, it’s going well!



Maybe it’s time to delve back into Java being it’s so important for mobile devices, huh?