When the Federal Reserve was created in 1913, the United States had a constitutional money system of gold and silver. Since then, the Federal Reserve created paper money as debt. This brought about creating money out of thin air. How is this money created?

When the U.S. government wants to spend another billion dollars that it doesn’t have, the U.S. Treasury creates U.S. Treasury bonds (debt) and exchanges them with the newly created Federal Reserve note out of thin air.

The question is, why doesn’t the U.S. government create the money itself, as the Constitution directs?

One of the many reasons why our modern money system is structured this way is so wealthy people will get wealthier by lending money to the U.S. government and to other national governments with interest.

Last year, the U.S. government spent $454 billion just on interest payments alone. Today we borrow money we don’t have, and now our national debt is $16 trillion and growing.

Thomas Jefferson once said if he could add another amendment to the Constitution, it would be a ban on all government borrowing.

Money should be created by Congress, not by private bankers called the Federal Reserve, which is not federal but belongs to a private banking cartel that owns its stock.

U.S. Constitution says in Article 1, Section 8, that the U.S. Congress is supposed to have the sole authority to create money interest-free.

If Congress would go back and obey the Constitution, the U.S. government would not have to borrow a single penny from anyone and should never go into debt. Congress, however, has given away this authority of creating money to the private bankers, who have been robbing American citizens of trillions of dollars ever since.

Marcel LeRoi


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