This video traces the history of how the goldsmiths of old gradually got into the business of loaning money, and eventually even creating it. This practice led to the use of "fractionalized reserves," in which money is created by the Federal Reserve (a private, profit-based company...not "Federal" at all) as it is loaned to banks, and multiplied by a factor of 10 as they loan it out. This is a "debt-based" system of creating the money supply for a country, and loaded with dangers! Much better than this debt-based "Federal Reserve Note" money system is the "United States Note" money system, which involves printing our own money (in limited amounts, of course). There's a 3hr video on video.google.com...just search for it there...
This video traces the history of how the goldsmiths of old gradually got into the business of loaning money, and eventually even creating it. This practice led to the use of "fractionalized reserves," in which money is created by the Federal Reserve (a private, profit-based company...not "Federal" at all) as it is loaned to banks, and multiplied by a factor of 10 as they loan it out. This is a "debt-based" system of creating the money supply for a country, and loaded with dangers! Much better than this debt-based "Federal Reserve Note" money system is the "United States Note" money system, which involves printing our own money (in limited amounts, of course). There's a 3hr video on video.google.com...just search for it there...