Why can politicians control the Federal Debts?
Because all out money is created out of debt. Again – it is a debt-money system. Our money is created initially by the purchase of US bonds. The public buys bonds such as savings bonds, the banks buy bonds, foreigners buy bonds, and when the fed wants to create more money in the system, it buys bonds. However, it pays for them with a simple bookkeeping entry which it creates out of nothing! Then this new money, created by The Fed”, is multiplied by a factor of ten by the banks using the fractional reserve lending. So, although the banks don’t create currency, they do create checkbook money or deposits by making new loans. They even have been allowed to invest some of this created money. In fact, over 1 trillion dollars of this privately created money has been used to purchase US bonds on the open market, which provides the banks with roughly 50 billion dollars in interest, risk free – each year, less the interest they pay to some depositors. Through this way, through fractional reserve
