The Insanity of Governments Borrowing Their Own Money From a Private Bank

Executive Summary

• The ridiculous private banking controlled system most countries have mean governments borrows their own money from the private banks.

Introduction

The private central bank design is that the bank has to borrow its own money. This is because it entirely hands over the right to create money to an unregulated cabal of private banking interests. The government then creates a debt instrument (in the case of the Fed, the Dept of the Treasury creates a Treasury Bond), and then the government exchanges this bond for money that the Fed (not the government) creates. Without a private bank, there is no debt involved in creating money, but as soon as a government central bank is replaced by a private central bank (as in the case of the 1913 Federal Reserve Act), all money is directly connected to debt. A new dollar being created means a dollar in debt is correspondingly created. In this way, the government’s capability is far below that of a chartered private bank. This is because while the private bank can create money with an accounting entry, a government operating under the private central bank design cannot do this. However, the money itself is backed by the government.