Can banks individually create money out of nothing? — The theories and the empirical evidence

Fred O'Malley · 05-03-2016, 04:11 PM

Can banks individually create money out of nothing? — The theories and the empirical evidence

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An empirical test is conducted, whereby money is borrowed from a cooperating bank, while its internal records are being monitored, to establish whether in the process of making the loan available to the borrower, the bank transfers these funds from other accounts within or outside the bank, or whether they are newly created. This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, "out of thin air".

Back in 1968 there was an important court case which you have probably never heard of (for reasons that will be obvious) called First National Bank of Montgomery V. Jerome Daly, but referred to as the Credit River case. Mr. Daly fought the foreclosure on his home on the principle that due consideration (something of actual value) was not loaned by the bank, as the bank simply created the "money" out of think air, then charged interest on it. The bank's President, Mr. Morgan, admitted on the stand that yes, banks, simply create money out of thin air to loan, and nothing of actual value was pledged by the bank. Mr. Morgan excused this behavior by saying that all banks operate this way, even though there is no actual law that authorizes banks (other than the Federal Reserve) to create money out of thin air. Judge Martin Mahoney took the view that the "consideration" by the bank was both unlawful and unconstitutional. The jury agreed and Mr. Daly kept his home. The 1968 Minnesota Trial Court's decision holding the Federal Reserve Act unconstitutional and void and holding the National Banking Act unconstitutional and void was never appealed or vacated. It was simply declared "bad law" and buried. Mr. Daly's lawyer was disbarred on trumped-up charges and Judge Martin Mahoney was poisoned to death six months later.

Read more: whatreallyhappened.com http://whatreallyhappened.com/#ixzz47bs4cl2K

05-03-2016, 04:11 PM	#1
Fred O'Malley I AM THE PALE HORSEMAN Join Date: Apr 2013 Location: Revolutionary South, USA Posts: 122,858 Rep Power: 50	Can banks individually create money out of nothing? — The theories and the empirical evidence Can banks individually create money out of nothing? — The theories and the empirical evidence Tags: DICTATORSHIP ECONOMY An empirical test is conducted, whereby money is borrowed from a cooperating bank, while its internal records are being monitored, to establish whether in the process of making the loan available to the borrower, the bank transfers these funds from other accounts within or outside the bank, or whether they are newly created. This study establishes for the first time empirically that banks individually create money out of nothing. The money supply is created as ‘fairy dust’ produced by the banks individually, "out of thin air". Back in 1968 there was an important court case which you have probably never heard of (for reasons that will be obvious) called First National Bank of Montgomery V. Jerome Daly, but referred to as the Credit River case. Mr. Daly fought the foreclosure on his home on the principle that due consideration (something of actual value) was not loaned by the bank, as the bank simply created the "money" out of think air, then charged interest on it. The bank's President, Mr. Morgan, admitted on the stand that yes, banks, simply create money out of thin air to loan, and nothing of actual value was pledged by the bank. Mr. Morgan excused this behavior by saying that all banks operate this way, even though there is no actual law that authorizes banks (other than the Federal Reserve) to create money out of thin air. Judge Martin Mahoney took the view that the "consideration" by the bank was both unlawful and unconstitutional. The jury agreed and Mr. Daly kept his home. The 1968 Minnesota Trial Court's decision holding the Federal Reserve Act unconstitutional and void and holding the National Banking Act unconstitutional and void was never appealed or vacated. It was simply declared "bad law" and buried. Mr. Daly's lawyer was disbarred on trumped-up charges and Judge Martin Mahoney was poisoned to death six months later. Read more: whatreallyhappened.com http://whatreallyhappened.com/#ixzz47bs4cl2K 0 __________________ MAKE AMERICA STRAIGHT AGAIN BLACK CRIMES MATTER “Either you are going to do politics, or politics is going to do you!” Hard times create strong men. Strong men create good times. Good times create weak men. Weak men create bad times. Good Things Come to Those who Work Their Ass Off! John Kennedy (R-La) The undying spirit of Southern Nationalism WHITE NATIONALISM DEFINED Ask not whether I am antisemitic ask only whether I am right. 'Birdman' Bryant THE BIOLOGICAL JEW by Eustace Mullins

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