We commonly use two misleading expressions; “money out of thin air” and “government printing press” both imply that our money has no backing. And often, the term “fiat” money is used to imply the same misconception. The truth is that every dollar (FRN) issued by the private banks is backed by the good faith and credit of “We the People.”
It is true that the money is created for free by the private banks and it is true that the banks add neither any banking or reserves but; it is not free for “We the People.” The banks use our credit which means we are backing the money. If you are wondering why we as a nation; are paying private banks interest and principal for money created via OURcredit – you are catching on – but that’s another story! Continue reading ““Our Land: Collateral For The National Debt””