JLS. You should get the book: The creature from Jekyll Island by G. Edward Griffin. He explains how the federal reserve was created and how they along with the U.S. treasury create FRN's [federal reserve notes] out of debt. The debts, [bonds, notes and bills] are created by the treasury. Those are then given to the federal reserve to be sold into the FED system. Those bonds, notes and bills then become a debt to the treasury and become an asset to the FED and by extension whoever the the FED sells them to. So there you go, money was created out of debt because of the U.S treasury promise to pay.
The same thing happens on a smaller scale every day at banks. Say you want to buy a house for $100,000 and you go to your local bank for a mortgage loan. They approve the loan but they arenn't sitting there with that much idle cash. As soon as you sign the loan papers it becomes a debt to you and an asset to the bank. Here again money was created out of debt. Since your loan is now an asset to the bank they are now free to borrow against it using it for collateral or even sell it to another party at whatever price is agreed upon.
Fiat currency. That's pretty easy. It just means that the otherwise worthless paper is decreed to be money. It says it right there on every federal reserve note printed.
"This note is legal tender for all debts public and private"
That's not a suggestion that's a law. So there you have the full circle with money created out of debt and a fiat mandate that the same money be accepted by all for payments of debt.
Quite a deal if you can get a piece of the acton.
Well, off to work I go to make a few federal reserve notes! LOL
News 
Market Data 
Discover 
AI
