Where does money come from?

All money is created as debt because that’s what money is.

All “financial instruments” have an “asset” and a “liability”.

Someone owns the asset and someone has the liability.

The fact that someone “owes” you something is your asset and their liability.

Gold, for example is not a “financial instrument”. It is a commodity with inherent exchange value.

Imagine you are a new government.

You have £0. You want to create £1, what do you do?

You create £1, an asset, and £1 of “national debt”, the liability.

Essentially you’re taking what you have, which is zero, and splitting it into +1 and -1, which = zero.

When you go to a bank and take out a loan its YOU that creates the money.

When you sign a loan agreement, you have created an asset and a liability.

All the bank does is buy the asset (the loan agreement) from you.

From Professor Richard Werner:

“Banks don’t lend money.

At law, it’s very clear, they’re in the business of purchasing securities. That’s it.

So you say okay, don’t you confuse me with all that legalese, no, I want a loan. Fine! Here’s the long contract, here’s the offer letter and you sign.

At law it’s very clear you have issued the security, namely a promissory note, and the bank is going to purchase that.

That’s what’s happening. Put it in layman’s terms what does that mean?

It means that what the bank is doing is very different from what it presents to the public that it’s doing.

What we call a deposit is simply the bank’s record of its debt to the public “