Banks Create Money When We Borrow

Banks land money that they do not have. It works like this:

http://en.wikipedia.org/wiki/Fractional-reserve_banking

Please read about "Money multiplier" in above link. It is NOT fiction. It is real.

I know it is hard to believe. But it is real. Many people think such terrible thing cannot be true. But it is true. Please read the book "Web of Debt" by Ellen Brown.

Entire population is in debt to the banks for money that was created out of NOTHING! They own the congress, they own the government. They do NOT want you to know the truth.

The banks create money when we borrow. This money becomes our money supply. It has interest+principal to pay. How can you pay the entire money supply with interest if borrowing stops?? System only works if borrowing expands exponentially. That is what we have been doing. We are borrowing money to pay old debt!

This is why Obama tells the banks to lend. If borrowing stops, it is impossible to pay outstanding debt, because money supply is less than the debt! Why? Because when banks created the "principal", they did not create the "interest" portion! Principal + interest does not exist, thus if borrowing stops, it cannot be paid.

This is why homeowners foreclose. Their mortgage contract is an impossible contract and should be void.