Web of Debt

John Trudgian recently gave me the book The Web of Debt by Ellen Hodgson Brown, J.D. and it raises a question.

Is debt money?

The answer is yes. Banks create debt. They lend you money for a car or house and you spend it. They put the loan in their books as an asset.
In other words, they created money.

On your books, it is a liability. If you go bankrupt, the bank must write off that asset. With many people going bankrupt many banks lost their assets and in turn, were insolvent.

The government does not create money; the Federal Reserve does. (The same way banks do by issue loans.)
In fact, the Federal Reserve is not federal, it is a private corporation owned by a few big banks.

As banks (including the Federal Reserve) create debt, they create lots more money.

-Jim