An anniversary repost, originally appearing March 31, 2014 at my other blog, The Air Standard:

The very essence of what this blog is all about has been spelled out and confirmed in an article by the Bank of England:

“Commercial banks create money, in the form of bank deposits, by making new loans. When a bank makes a loan, for example to someone taking out a mortgage to buy a house, it does not typically do so by giving them thousands of pounds worth of banknotes. Instead, it credits their bank account with a bank deposit of the size of the mortgage. At that moment, new money is created. For this reason, some economists have referred to bank deposits as ‘fountain pen money’, created at the stroke of bankers’ pens when they approve loans.”

Read that again, especially this part: “When a bank makes a loan, for example to someone taking out a mortgage to buy a house, it does not typically do so by giving them thousands of pounds worth of banknotes. Instead, it credits their bank account with a bank deposit of the size of the mortgage. At that moment, new money is created.”

I drew a cartoon about this back in 2009 that illustrated this very point regarding mortgages (click to enlarge and read):

The enormity of this admission cannot be overstated. This is the central problem of our time: we are enslaved in debt that isn’t even real! It would be one thing if banks actually loaned money that they had on hand and had to do without for the life of the loan. But as we can see above–they don’t do that. They create “money” out of nothing and then pretend that you owe them. It is way past time that this became common knowledge and that we change this system. I have a proposal here:

“The solution to these problems, then, is self-issued currency. That is, every citizen in a fiat system ought to have the ability to issue his or her own money, up to any amount needed. This will solve both of the problems above, because when self-issued currency becomes the norm, paying money will be as easy and as painless and as much as an afterthought as saying ‘Thank you’ is now. Problem one solved. And obviously problem two is solved because there would be no monopoly on the issuance of currency, hence no unnecessary control over anyone or anything, either by the state or by the issuer of the state’s currency.

For those that might recoil in horror at such an idea, keep in mind that all money is fictional. In fact, all money is already self-issued, as will be shown below. Money must be created by someone, somewhere, because money does not exist in nature–except to the extent that a natural item like gold or salt might be assigned the properties of money.”

I will have much more to say about this in the coming days. I’m so excited that this is coming to light that I can barely contain myself. Big ups to Max Keiser for reporting on this and for Washington’s Blog for doing the same, with links and video. My mind is reeling on this, I’m hopped up on coffee…this is all I can get to until I calm down some…