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February 27, 2010
2/27/2010 12:00:00 AM
As is evidenced from the book: “The Federal Reserve System; Its Purposes and Functions”; (1st Ed) pages 74 to 78 and 177 and 180, put out by the Board of Governors of the Federal Reserve System, Washington D.C., 1963, and from other evidence adduced herein, the said Federal Reserve Banks and National Banks create money and credit upon their books and exercise the ultimate prerogative of expanding and reducing the supply of money or credit in the United States. See especially page 75 of the Manual. This creation of money or credit upon the Books of the Banks constitutes the creation of fiat money by bookkeeping entry. Ninety per cent or more of the credit never leaves the books of the Banks as the Banks produce no specie as backing. When the Federal Reserve Banks and National Banks acquire United States Bonds and Securities, State Bonds and Securities, State Subdivision Bonds and Securities, mortgages on private Real property and mortgages on private personal property, the said banks create the money and credit upon their books by bookkeeping entry. The first time that the money comes into existence is when they create it on their bank books by bookkeeping entry. The banks create it out of nothing…
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