Fractional Reserve Lending

[Aractus]

Because Rhythm, if the Government had made the money instead of the Banks then it would have been created as debt-free currency the government could spend. Again, we're talking $1.6 Trillion dollars. That's more than 3 times the government debt. They could have that money to spend directly on schools, hospitals, and the public service. In other words, public money spent for the good of the public and put into circulation. People would only have received the money when created in exchange for goods and services - or in the forms of their government salaries. When Banks create money, the public has not received any good and services in exchange for the creation of that money, and it gets used to create debt: i.e. as a way for the banks to have leverage over members of the public. It benefits the wealthy because the wealthy are the ones who can create banks and then create money backed by their "capital". For example, backed by their $50 million house, or yacht, or bank building! It's just as unfair to ordinary citizens as the gold standard.