Susan Peters testifies on monetary system and private bank money creation
Susan Peters of the American Monetary Institute discusses the root cause of city distress as the U.S. monetary system, arguing that commercial banks privately create money through loans. She cites Bank of England research on money creation in the modern economy.
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Hi, my name is Susan Peters, and I'm a resident of the Upper West Side of Manhattan and a member of the American Monetary Institute, a 30-year-old monetary reform 301c3.
I speak today about the root cause of distress in our city, displayed today by our need to legislate a pie-a-terre tax, a wealth tax.
The root cause is our U.S.
Monetary system, which determines the creation and distribution of money.
Who creates all the money our citizens need to live?
Who decides who will receive that money?
I worked for 17 years as a data professional for a Wall Street bank.
I learned the secret of private banking.
Our money, the money we all need to pay rent,
buy food, clothe our family, send our children to school, is privately created by commercial banks.
Quote, every time a private commercial bank makes a loan, it creates the loan principal by writing a bookkeeping entry for the principal in the borrower's checking account.
This is new money creating the U.S.
Money supply, all from debt.
Hard to believe.
Legally, the banks can charge interest and foreclose on property when the borrower defaults.
This is a vast power in the hands of private parties, not taught in our schools or discussed in our media.
These private banks are deciding who gets loans.
Therefore, deciding who gets loans.
Deciding who gets loans.
the distribution of our money.
As any citizen can see, the loans are going to the financial economy, which creates stocks and bonds bubbles and ignores the real economy where we all live.
Real infrastructure in our city suffers.
I'd like to give you some documentation here.
One of them is an article from 2014 published by the Bank of England, which has the same system as ours.
The title is Money Creation in the Modern Economy.
Quote, this article explains how the majority of money in the modern society is created by commercial banks making loans.
End quote.
Number two, quote, in the modern economy, most money takes the form of bank deposits.
But how those bank deposits are created is often misunderstood.
The principal way is through commercial banks making loans.
Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower's bank account
thereby creating new money.
Thank you very much.
Thank you.
Please contact me with questions.
Thank you.