Federal Reserve System: Creating Money from Debt

Creating money from debt? Sound absurd? But that’s exactly how the United States of America money system works. Fiat money is created out of thin air-without the backing of intrinsic assets to back up the receipts (money) to ensure credibility and value. Clearly, the private Federal Reserve System was implemented without the citizens’ long term survival in mind.

G. Edward Griffin, author, The Creature From Jekyll Island, Fourth Edition, American Media said it best in the following quote taken from pages 193 and 194:

“There are three general ways in which the Federal Reserve creates fiat money out of debt. One is by making loans to the member banks through what is called the Discount Window. The second is by purchasing Treasury bonds and other certificates of debt through what is called the Open Market Committee. The third is by charging the so-called reserve ratio that member banks are required to hold. Each method is merely a different path to the same objective: taking the IOUs and converting them to spendable money.”

One has to wonder how any purchasing power has managed to survive at all with that kind of Dollar dilution. The U.S. Dollar will buy about three percent of what it would buy in 1913, the year the money system was handed over to the private Federal Reserve System through the Aldrich plan.

Unfortunately, few Americans and many professionals working in the field of finance, banking, and investing to not understand the money system and do not understand how money is created from debt. How does that work, exactly?

A simplified explanation is as follows:

The U.S. Treasury has no money. What about all those Treasury bills and notes sold every week and several times a month? Treasury borrows that “money” from the Federal Reserve who loans it to them and then charges interest for money it did not have and created out of nothing. And that’s the way your money system functions. It is not surprising that money loses value so quickly.

James Clark King, LLC



Understanding the Money System: Haircuts, Chickens and Eggs

Do you understand the money system? If you do not, this article and the sources cited will provide a quick tutorial on what money should be, but is not. Why is money something besides what it should be? Because of fiat money. Know what that is? Take a look at this film and you’ll be unpleasantly surprised.  Money as Debt-A full length Documentary will provide information on the Federal Reserve System. The film may be viewed on Youtube. Paul Grignon is credited with the film and he also wrote a book using the same title. Here is the link to a website containing information on the money system.


Essentially, fiat money is a representation of a monetary system’s currency without full backing of hard assets, commonly known a the gold standard. A gold standard is foreign to the United States money system as well as other countries which have a central bank controlling their money and setting monetary policy.

Remember, inflation is a made up, academic-type of term designed and invented to hoodwink followers of news into believing devaluation of money is a normal phenomenon, instead of a dilution process of purchasing power over time due to excessive printing of money-the printing of paper currency or credit offered by digital money. Either way, more U.S. Dollars, Yen or Eurodollars equal more money in the system than prior to the new printing. Hence, less value and the erosion of purchasing power. You may want to review an article by Baily who provided a simple, fictional illustration of a responsible money system.

Here is the link:


Eustace Mullins wrote a book explaining the Federal Reserve System.

Read about it at:


Federal Reserve System. Hmm. That implies Federal Government, right?

Did you know the Fed isn’t Federal?

G. Edward Griffing wrote another book explaining the Fed. By the way, each of these works contain footnotes throughout in case readers question any information. One can see a film or read the book, The Creature from Jekyll Island. This film is from youtube and G. Edward Griffin is credited with the film. He is also the author of the book, The Creature from Jekyll Island.

Here is the link to G. Edward Griffin’s film, The Creature from Jekyll Island and it is on you tube:


Imagine a patron walking into a barber shop in 1816. He forgot his money and can’t pay for his haircut. He lives twelve miles from the barber and doesn’t want to return to pay the bill. However, he is on the way to the butcher shop to sell his chickens and eggs. He offers to pay the barber in the form of one chicken and a dozen eggs. The barber is willing to accept this form or barter because it has value similar to the value of the haircut.

Today, if the value of a chicken and a dozen eggs is calculated, this value will be approximate to the value of a haircut. Keep in mind, certain barbers charge higher or lower rates and all chickens and eggs are not of equal value. However, you can find chickens and eggs-one chicken and a dozen eggs that have similar value to certain barbers’ haircuts. This is the point: “hard assets” have a constant, consistent value.

This example illustrates the value of “hard assets” behind a monetary system. Certain goods and services can be exchanged for other goods and services and the value of this exchange will remain constant throughout time.

Does a haircut cost the same today as sixty years ago? Why not? A chicken and a dozen eggs would buy a haircut at that time and the value of these foodstuffs will buy one today.

You can now ponder the “value” of a fiat money system and why people who stop working have their savings eroded by the devaluation of their money. Truly, the Federal Reserve System is an irresponsible monetary system designed to rape citizens over time through the loss of purchasing power while enriching the central bankers through the printing of money out of thin air. See the article at the link at:


James Clark King, LLC

Publisher, Privacy Crisis Books




Check Cashing Store Managers: Key to “Banking Secrecy”

I have not used this store for a year and a half to cash business checks. I am in town and want to keep the business relationship. The store “manager” assures me they can make all decisions necessary on a Sunday afternoon when I call prior to taking the trip across town. I wonder…and elect to take her word for it.

Fifty minutes later, I sign the checks after being promised by clerk number one that they look fine. Enter clerk number two, a large lady who notices I have not been in for a while. “It’s time to update your information, ” she says. I agree and assist in every way possible: telephone, address verification, business name, everything. She asks if I’m the owner of the Limited Liability Company. “I manage it.” She insists I write “DBA” on the back. I explain that’s for sole proprietorships. She doesn’t know the difference and calls on Clerk number three. Number three makes a call to the District Manager. I know him and address him by name. She isn’t impressed. She has to leave a message as he’s not in. Clerk number four enters and says I’ll have to bring in all the paper work-all over again. I explain I’ve been a customer since 2007. She advises she doesn’t want to argue. I leave my name, business name and phone number for the district manager. After leaving the store, I swear for half a minute.

On Monday, Bill, the district manager calls. I remind him that we’ve met. He looks at his message and advises the staff made a mistake and should have cashed my checks, and says to come in again at my convenience. Later in the day, I make a second trip and hand over the checks to a very polite young man who reviews the district manager’s notes and repeatedly says how sorry he is for the problems their staff caused me the day before.

The key to banking secrecy and personal and business privacy is to state your goals to the managers who have the ability and responsibilty to meet your needs as a responsible consumer. Try not to waste your time with clerical folks. Today, most clerks have no idea how to handle any extraordinary needs as far as privacy is concerned. I always deal with top level managers whenever possible and attempt to meet them in person. And make sure you do everything according to the laws in your jurisdiction.

Grant Hall


Federal Reserve is Private, Not Federal

The chances are that you never learned anything about the Central Bank of the United States in Economics 101. In fact, I’ll wager your college professor couldn’t explain the money system. Imagine that.

Once I interviewed ten different bank officers while preparing material for my first privacy book, Privacy Crisis and made a startling discovery: not one of these ten banking executives knew the true source of their money. Think about it. All ten thought the Fed was owned by the Federal Government. It is not. It is a private corporation formed in December, 1913 to set monetary policy for the U.S.

The Federal Reserve Act was sneaked into law near Christmas in December, 1913 while few were paying attention.

The Federal Reserve essentially creates money from debt-out of thin air at the request of the U.S. Treasury, and loans this money back to Treasury at interest.

Eustace Mullins who is now deceased wrote Secrets of the Federal Reserve and traced ownership of the Fed to the same families who have had an interest in other Central Banks of the World. The book is a quick read and a valuable reference tool that will come in handy when you have to prove that a cartel of private bankers, have ruined your purchasing power through irresponsible spending and the creation of money from debt.

The reason most don’t understand the meaning of the U.S. Central Banking system remains a mystery though my suspicion is that the clever name assigned to this private money from thin air, instant credit machine has a good deal to do with the high level of ignorance that continues to exist about the money and banking system.

Now that the dollar has lost approximately 97% of its value since the Fed was formed and continues to lose more as the currency is further diluted through bailouts and excessive spending on every front imaginable, people are paying attention, and more and more understand the problems associated with a fiat money system.

As a fradulent money system is dependent on additional money creation to keep the Ponzi scheme afloat, human beings as tax payer slaves become collateral rather than commodity assets. Once this concept is understood, it becomes clear why freedoms and personal privacy are destroyed under the guise of any number of ruses. Is the current marriage between the private Federal Reserve and the U.S. Government the definition of fascism?

It is possible to live under the radar while participating in the system. And many are able to accomplish banking secrecy in the U.S.A. and hold investments anonymously.

Subscribe to my blog, www.PrivacyCrisis.com/blog.

Thanks for reading.

Grant Hall