“The process by which banks create money is so simple that the mind is repelled.”
- Economist John Kenneth Galbraith

[W]hen a bank makes a loan, it simply adds to the borrower's deposit account in the bank by the amount of the loan. The money is not taken from anyone else's deposit; it was not previously paid in to the bank by anyone. It's new money, created by the bank for the use of the borrower.
- Robert B. Anderson, Secretary of the Treasury under Eisenhower, in an interview reported in the August 31, 1959 issue of U.S. News and World Report

“Do private banks issue money today? Yes. Although banks no longer have the right to issue bank notes, they can create money in the form of bank deposits when they lend money to businesses, or buy securities. . . . The important thing to remember is that when banks lend money they don’t necessarily take it from anyone else to lend. Thus they ‘create’ it.”
-Congressman Wright Patman, Money Facts (House Committee on Banking and Currency, 1964)

"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented.
- Sir Josiah Stamp, president of the Bank of England and the second richest man in Britain in the 1920s.

Banks create money. That is what they are for. . . . The manufacturing process to make money consists of making an entry in a book. That is all. . . . Each and every time a Bank makes a loan . . . new Bank credit is created -- brand new money.
- Graham Towers, Governor of the Bank of Canada from 1935 to 1955

http://www.globalresearch.ca/index.php?context=va&aid=15649

In the past the issues were with US bills. No mention here if the bogus bucks are US or Canadian ?

What is a "$10o" bill? Funny place for a typo.
Note that a corporation can create money but an individual may not.
Behind all is the fact that what we call money has no inherent value at all. At one time it was backed by gold, then silver, then merely the copper in the penny and now even those miserable little coins are alloy of no particular value.
All we have is faith to back up money and as governments shovel more and more "money" into the economy, we are losing that faith.
This is just SummerSoul's opinion.

If a corporation can create money, which technically they can't, I most certainly can create money.

I will take your used car, and I will give you a signed note, an IOU, that is payable, with interest, in 2012. You accept that IOU instead of $5thousand cash, and I have "created money" in the same sense.

Unlike the normal every day meaning of the term money, the IOU is not, as it says on USA paper currency "legal tender for ALL debts public and private". Neither is credit extended by a coporation, such as a bank or a retail outlet. That is a contract between two parties, the same as the IOU. Both parties must agree to it.

Isnt it a wonderfull world for our banks.
Cheers

we better stand up as a large, combative force soon, or we are going to go back to the middle ages with these clowns.

STAND UP, AND BE COUNTED, AND DON"T LET THESE MORONS TAKE OUR GUNS AWAY!!!

Politicians are thieves and liars! They are the bottom feeders! What do you think Bruce? Whoops sorry, I meant to say Mr. PG!!

The following is taken from an article entitled "Nope, Thats Not Money". The date of this article is Aug.19, 2007

Prudent Bear's Doug Noland has for years been pointing out that one of the drivers of the credit bubble has been the ever-broadening definition of money. As the global economy expanded without a hic-up, more and more instruments came to be used as a store of value or medium of exchange or even a standard against which to value other things -- in other words, as money. Thus mortgage-backed bonds and even more exotic things came to be seen as nearly risk-free and infinitely liquid. In Noland's terms, credit gained "moneyness," which sent the effective global money supply through the roof. This in turn allowed the U.S. and its trading partners to keep adding jobs and appearing to grow, despite debt levels that were rising into the stratosphere. For a while there, borrowing actually made the world richer, because both the cash received and the debt created functioned as money.

With a few months of hindsight, it's now clear that debt-as-money was not one of humanity's better ideas. When the U.S. housing market -- the source of all that mortgage-backed pseudo money -- began to tank, hedge funds found out that an asset-backed bond wasn't exactly the same thing as a stack of hundred dollar bills. The global economy then started taking inventory of what it was using as money. And it began crossing things off the list. Subprime ABS? Nope, that's not money. BBB corporate bonds? Nope. High-grade corporates? Alas, no. Credit default swaps? Are you kidding me?

No longer able to function as money, these instruments are being "repriced" (a slick little euphemism for "dumped for whatever anyone will pay"), which is causing a cascade failure of the many business models that depended on infinite liquidity. The effective global money supply is contracting at a double-digit rate, reversing out much of the past decade's growth.

http://www.safehaven.com/article-8222.htm

To taxi: Huh? What does your standard rant have to do with this story?

It is interesting to see a story on counterfeit money turn into a banking issue.

Frank