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Why does government borrow money from banks at interest when it can create its own money without interest?

See the "Davis Money Plan:" at www.LeslieDavis.org

Create millions of jobs
Expand the money supply without price inflation
Build and maintain great roads and bridges

How money is created

"The actual creation of money always involves the extension of credit by private commercial banks."
Russell L. Munk, Assistant General Counsel International Affairs, US Treasury

"A private commercial bank...simply makes book entries for its loan customers saying, 'You have a deposit with us.'"
Russell L. Munk, Assistant General Counsel International Affairs, US Treasury


"Money is created when loans are issued and debts incurred. Money is extinguished when loans are repaid. A loan from a bank creates a deposit which the borrower may draw upon for the payment of obligations. Some existing money in circulation must be acquired by the borrower to repay the capital of the loan. When that is returned to the bank it is withdrawn from circulation."
John B. Henderson, Sr. Specialist Price Economics, Congressional Research Service.


"Money that one borrower uses to pay interest on a loan has been created somewhere else in the economy by another loan."
John M. Yetter, attorney, US Treasury

"When a bank makes a loan, it simply adds to the borrower's deposit account in the bank by the amount of the loan. the money is not taken from anyone else's deposit; it was not previously paid in to the bank by anyone. It's new money, created by the bank for the use of the borrower."
Robert B. Anderson, Treasury Secretary under Eisenhower, in an interview reported in the August 31, 1959 issue of U.S. News and World Report

Call for a "Money Plan" seminar - 612-529-5253

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