---- How the Federal Reserve and the Bank of England really work
ronin - 2:41 pm on Nov 12, 2006 (gmt 0)
I must admit I have heard something along these lines before but always from half-rambling, conspiracy theory loving nutcases - never explained quite so clearly and plausibly.
...we pay the bank interest on that money just as though it was real money that existed that somebody was sacrificing to make available to us as a loan. We really think weíre borrowing money that somebody has put into the bank on deposit, and the interest rate is justified because we have to pay that person for the sacrifice he made of making that money available to us, when in fact the money was created out of nothing. And so we are paying interest on nothing. Now that is the scam that Iím talking about. That is how all of our money comes into existence, not only in the United States but in the entire Western world. And if that isnít a scam, I canít imagine what would be.