Modern Money Mechanics (FREE pdf)

I've decided to expand this little bit of info I found...
Originally posted in Money as Debt

I was in a book shop today and just out of pure curiosity i asked if they had a copy of Modern Money Mechanics to which came the reply that it is now out of print, but I could quite easily go online and download a pdf of it for free.

much glee.

The purpose of this booklet is to describe the basic process of money creation in a "fractional reserve" banking system. The approach taken illustrates the changes in bank balance sheets that occur when deposits in banks change as a result of monetary action by the Federal Reserve System

As seen in Zeitgeist Addendum and also touched upon in David Ickes - Big Brother, the big picture

neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper, deposits merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face value.

It (the bank) must maintain legally required reserves, ...equal to a prescribed percentage of its deposits.
...Under current regulations, the reserve requirement against most transaction accounts is 10 percent.

Of course, they do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts.

Modern Money Mechanics

I could go on using the Zeitgeist examples taken from modern money mechanics all day long, but not much point really when it is all freely available to everyone

Brilliant Avatar!

Thanks for posting this I was looking for it awhile back and forgot to actually get it.

reply to post by SolarSeaman


It kinda made sense to me to actually see if I could get hold of some of the related info from Zeitgeist addendum, just to back up what's been said in it.
So, mostly out of pure curiosity, I wondered if this document was publicly available or not...and here it is

I was very surprised to be honest. I did not expect it to be, not only obtainable in all its glory, but free too.... !!!

It's good that we can have access to this. I'm sure there will be many people downloading and printing it off in defence of any of the matters discussed in Z.A.

It would also be a nice little item to hand out to people whenever any ATS members hand out leaflets or hold events to promote ATS etc...

All part of our ammunition

What would be nice is if we could translate it into an easily understood form for the masses. A kind of ATS Moden Money Mechanics. Of course we would need to agree on its content as to not distort the real meaning.

reply to post by ExistenceUnknown


just start reading it!! i think it's fairly self-explainatory, but it does take a little while to read...

"Modern Money Mechanics" is more valuable to you than money itself!

Give that to someone on the street and they will flip through it in a few seconds and then totally dismiss it. Keep in mind the average IQ is 98 in the U.S. which means half the people are dumber than that and half the people are smarter. I would imagine the Fed made this document alot more confusing than it has to be. Dumb it down so that the rest of america can be just as pissed off as us.

hahah its a a communist book on how to control the people you lead...

"sell a man a fish, you feed him for a day. Teach him how to Fish, and you jus lost your job..."

-karl marx

its sad really, but shows you how selective language can manipulate even the brightest

does this only apply to the us banking system?

reply to post by ExistenceUnknown


I bet in 100 years time there'll be wars over the correct wording of "The Great Document" - Modern Money Mechanics. I can see it now. Mmm...

But seriously it is interesting and fairly simple for those who can read for more than 20 seconds at a time!

thanks for this, good post.

Fractional reserve banking has been BS since 1913, we need to abolish the Federal Reserve! Here's a great quote from Andrew Jackson's farewell address in 1837:
"Recent events have proved that the paper-money system of this country may be used as an engine to undermine your free institutions, and that those who desire to engross all power in the hands of the few and to govern by corruption or force are aware of its power and prepared to employ it. Your banks now furnish your only circulating medium, and money is plenty or scarce according to the quantity of notes issued by them."

People cannot accept money are created from thin air. They feel insecure when thinking about that

[edit on 7-11-2008 by pai mei]

I've been saying for years that the first thing kids should be taught in school
is basic economics, before any other subject.

Fact is the concept of compound interest is lost on your average G7 citizen.... how else
can you explain the sub-prime mess?

I agree people don't want to contemplate the realities of the Fed and ECB printing money
with nothing to back it.... I try to expalin to people that current events is inflating away the purchasing power of the dollars in their pocket each time there's a Fed bail out.

And here's the real sticker..... all the banks are broke and don't have enough capital to back their toxic assets.... the Federal Govt is in double digit trillion $ debt....90% of american taxpayers are overleveraged with debt.... where's is the bail out money coming from ??
The Fed, if your check their balance sheet, they don't have the funds to cover these bail outs... it's a trick of numbers.... they stopped publishing M3 money creation numbers a few years back because it's gone exponential

The Fed has created a hologram of a crisis ands is now lending their friends (non central banks) the money (which we, the people, probably already borrowed from banks or have still to earn) from our back pockets, devaluing it big time and then billing the govt (with interest) that we the taxpayer will have to back in the future through taxation.

The irony of it is so large it's laughable... people don't get it that our current wages and savings are being pummelled away in value. Ask yourself what is todays real rate of inflation and what will it be in the future? Compound interest rates in the future ??

Its a double whammy folks. The greatest confidence trick ever!

Wait till the arabs stop accepting $ for oil... american becomes the new Zimbabwe.

www.econbrowser.com...

Its' not only Sovereign Wealth Funds sitting on trillions of petrodollars

Here's a good link to what the Fed is actually up to... the only reason we're seeing a slight deflationary downturn is that all the bailout cash that has been lent to the commerical banks, they're sitting on the reserves to offset the toxic crap they hold.

If the banks opened the floodgates then inflation would go through the roof. If the banks do start lending to each other as normal it would only compound the US debt problem.

I personally think we

Thank you. I've been meaning to find this.

Originally posted by Unknown Perpetrator

If the banks opened the floodgates then inflation would go through the roof. If the banks do start lending to each other as normal it would only compound the US debt problem.

Herein lies part of the problem... if they let it all flow, then everything becomes worthless, hold it all back and nobody can afford anything...
to gain profit requires their careful 'attention' regardless of the pains and troubles the actual users may suffer.

hence the slavery that is built into such a system. It's designed in such a way that we have all become numb to it and some do commit suicide, unfortunately.

I would bet that a lot of people who actually work in banks have no idea as to how it really works and its true purpose. They too, after all, would have to be blinkered from the truth for the wheels to keep turning.

this document strengthens the point of the issue for which many are now suffering from and which we all must try to stand up against and bring down, or at least stop temporarily until a non-slave solution can be found.

meanwhile, every Human has the right to food, water and somewhere to live. nothing else matters really, yet even now in this 'civilised' society, we still pay rocketing prices for basic humna rights and neccesities.

A change is really needed...

it seems to me that if it costs more to make a penny then its worth is more then the the market says, dont forget the nickel dimes and quarters can the dollar bill be worth more then what the market says against the euro, if the dollar is made out of cloth, ink, tumbled and dried and crisped . the dollar would have more weight against the euro and could per say be used to back the dollar.

the dollar to back the dollar eureka

This, in itself, poses a bit of a dilema.

If the money being made actually costs more than it is worth, why the heck are we giving it such high value in the first place.

Imagine the manpower, mining, tools, equipment, printing presses, buildings, insurance and all other related business costs to obtain, fabricate and issue the money itself... immense amount of work..and for what? Interest? profit? a devaluation every so many years...

it's almost the same as having a major war every now and again to bump profits up and sweep the world of a few million people in order for the money machine to keep functioning and not balloon out of control due to its interest based infrastructure.

not really there is no dilemma it just means the value of the dollar would be higher than it is, perhaps look for the dollar boost in the near future

There is very little of the money supply actually printed out in notes and coinage.

There's three types of money, M1, M2 and M3... the Fed stopped reporting the M3 money growth because of the contradiction to the official Inflation figures and CPI.

Also here's a graph of the Feds balance sheet. keep in mind that the BoE, ECB and other central banks have been up to the same tricks



They're stalling paying the piper and the real problem is not your current wages and conditions which is a serious issue but the prospect of working until you die as your pension fund will be worthless and mosdt will probbaly never own their own home as the financial
world. systemically collapses. Be sure if they create a NWO or global currency there will
be a bigger pwoer grab and pauperization of the masses never seen before. One thing is for sure, the politicans are making the problem worse and seem to be enjoying it. They are avoiding the windfall taxes of Exxon, BP, nationalization of all banks like the Swedish model
which would be a big step in killing off the Fed and jailing people from JP Morgan, SEC and
Goldman Sachs for criminal behavior.

The people have had enough