Is money created through debt?

Written by Andy

This is my answer to a Quora question:

What exactly do people mean when they say money is created into existence through debt? Why is that so?

Written in that manner, it is difficult to comprehend. Let us study how money is created. Money is a freely created commodity. It is created as paper flies out of a printing machine with the picture of a historical figure, or it is created as what is called ‘Fountain Pen Money’. This second origin occurs when a number is written in a register. Let us move to the Money Supply which is the volume of money in a nation. It rises each year. The extra comes from somewhere. In times gone by, the monarch created the money and spent it into circulation. The nation and the people operated without debt. There was no national debt. King Charles got his head removed and the usurers stepped in with a compliant monarch, William of Orange from Holland. The puppet king borrowed the money of the nation into existence. So money was created for circulation in the form of paper notes at the same time as a debt to the usurers was created.
Let us move to the modern world. You wish to buy a house from ‘MrSeller’. You go to the bank and ask if you could borrow a million dollars. They look at you and recognize that they can garnish your wages for thirty years. On the appointed day, the bank writes $1000000 in the account of MrSeller and writes $1000000 with a minus sign in your account. The bank did not need to look in their vault. They did not need a million in notes. They didn’t need to ring the central bank. It was a zero sum pair of transactions. Accountants call it ‘double entry accounting’. From that moment, there is one million more money in the nation and one million more debt. Money was created at the same time as debt – which is the answer to your question.
Unfortunately, you now owe the bank one million plus ten percent. Next year, you owe the bank owe the bank one million plus ten plus ten. the next year you owe the bank one million plus ten plus ten plus ten. We now have more debt than money. Which is why all the great prophets were also money reformers. They rejected usury, the lending of money and expecting more in return. They rejected illogic. Jesus threw these tyrants out of the temple. I calculate that my country, Australia, has about three times as much debt as money. U.S.A has about three and a half times as much debt as money. This means that the banks are operating insolvent as they cannot collect on their debts.
At around eight years, you will owe more than twice what you borrowed.
Your question misses the case where money is created without debt. I often ask: “Who has the authority to create the money of the nation?” The answer is, of course: “The Government.” I reply: “Why then would the government be in debt?” The reason is that the government borrows rather than creates the money. Banks, owned by the usurers, create money. Giving you the vote continues the process as you only get a choice between parties that support the ‘debt banking system’ and every war advertised by their propaganda arm, the legacy media. The wars are used to hammer any country that steps outside their monetary straight jacket. Next on the list is China with its network of Public Banks and its control of its exchange rate. Germany got the same treatment because it stepped outside of the usurers control.
Thank you for your question and the opportunity to answer.

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