View single post by Joe Kelley
 Posted: Sat Aug 18th, 2007 09:55 pm
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Joe Kelley

 

Joined: Mon Nov 21st, 2005
Location: California USA
Posts: 6399
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Mana: 
 For some reason my links to the Kucinich Forum continue to change.

I found the link to the "old" Kucinich forum and found the following:

http://kheper.net/essays/Transfinancial_Economics.html


Interest Free Monetary Reform.
At the present time radical monetary reform is concerned with the power of banks. These private commercial companies create virtually all of the money of the world as loans, or credit. Strictly speaking, governments issue the rest as coins, and paper. The banks though produce it "out of thin air" by simply adding figures of a higher monetary value onto paper, and/or computers. There is also meant to be a limit on how much they can create, and this is based on "money" kept in reserve. This whole set-up is called fractional reserve banking. The banks ofcourse make huge super-normal profits on their loans for commercial, governmental, and private use (eg. mortgages).