Banks are composed of accounts owned by the banks and created for borrowers by the bank which holds the fiduciary interest in the account. The money in an account is a debt created by the banks on which they charge interest.

Bank accounts (debt accounts) enable people to transact businesses without the need for money using a digital currency created and administrated by the banks. Banks transfer digital currency from one account to another or from the buyers account to the sellers account. Banks track who owes who what usually as they use credit and bank cards and adjust the numbers in these accounts to represent the flow of assets.

By having a bank account you do not need money to buy from Fred. You give Fred your credit or debit card and this tells the bank to subtract the amount of the purchase from your account and move the amount to Fred's account. Because these accounts are owned by the banks and because they do not use money banks can create accounts and put in whatever amounts they feel appropriate. The terms "money" and "dollar" are not copyrighted so banks use these terms to refer to the debt they create for their account holders. As the owners of thes

About Banks
e accounts and the debt they contain or represent banks can create whatever amounts of digital currency they wish without regulation or coming afoul of the counterfeit laws.

Exchanges use this same system but in reverse. Exchanges are owned by the Account Holders not a bank and they create credit accounts rather than debt accounts. Credit Accounts are based on assets not on liabilities. Banks in fact turn assets into debt or liabilities and Exchanges turn assets into equity. Equity and debt are contradictions.

revised September 07, 2013




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