- US courts upheld the Federal Reserve as a private, non-governmental bank.
- Our US Constitution, Article 1, section 8 states that Congress has the power "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;"
- The Reserve Requirement ("money multiplier") set by the Fed allows banks to lend 10 times the money they have on deposits, thus to "create money."
- Due to #3 above, banks therefore create over 90% of the money supply, charging interest for the money they create and lend in loans. Our money supply is therefore a majority of debt based money, meaning that we pay interest to banks for the privilege of 90% of the money in existence.
- The Fed and banks have usurped Congress' Constitutional right, making the nation indebted to 90+% of the money that is created by banks, at interest rates specified by the Fed independent of any branch of our gov.
- Congress should take back that right, as many times in the past.
The Fed's reserve requirement does not actually create money. Moreover, if you accept your arguments, the Fed is actually limiting the creation of money by requiring banks to keep more money in reserve than they otherwise would. The key problem with your argument is that the Constitution gives Congress the power to "coin money," which lending does not do. Lending allows people to use other people's money for a time. The money they are borrowing was coined by act of Congress, and the loan is repaid using money coined by act of Congress. The only money "created" is on paper.
First, "to coin money" has a clear, physical meaning. There is no need to expand it into the more general sense of "to create money." Second, the framers of the Constitution clearly did not mean to eliminate the loan system which had been developing in America since long before even the Revolution, much less the Constitution, and continued even more strongly afterward. Third, the Federal Reserve Bank was created by act of Congress, and Congress observes and directs its governance, so the "creation of money" because of the Fed is through the direction of Congress, much like the physical coinage of money is not actually performed by Congress, but directed by Congress through the Bureau of Engraving and Printing. Finally, the "money" created by lending is not actually usable money. When person A lends $100,000 to person B, person A cannot use that money and has no money, only a promise of money in the future. $100,000 is still all the money that exists from the transaction.