Modern Money Mechanics – A Workbook on Bank Reserves and Deposit Expansion is a booklet that was first published in 1961 by the Federal Reserve Bank of Chicago.
Later revised and distributed up to 1994, it provides a simplified description of the United Statesmonetary system since the inception of the Federal Reserve System, in 1913.
- May 1968
- September 1971
- June 1975
- October 1982
- June 1992
Here are some excerpts from the booklets description on the Internet Archive website:
This booklet has been widely used by critics of the Federal Reserve System as damning evidence that the American fiat currency system has been basically flawed since its very inception in 1913. It has been cited by hard money (i.e. precious metals such as gold and silver) advocates, political libertarians and others, such as Gary North and Lew Rockwell. It has also been featured in various YouTube videos, as well as in the movie Zeitgeist: Addendum (2008), which uses it to give a clear and simple explanation of money creation by the Federal Reserve.
The Federal Reserve is the United Statescentral bank, and its money creation system is essentially the same used by all other central banks in the world. Basically, the critics argue that this system is used to create money virtually out of thin air, and that money created this way is simply debt that can never be repaid.
As a simplified expose of fractional reserve banking, Modern Money Mechanics remains an excellent primer that can be read in a single sitting. It also has the advantage of showing us the Federal Reserve presenting itself and its operations to the general public.
Update, March 18, 2015
In Episode 4 of his Hidden Secrets of Money 5-part series, entitled The Biggest Scam In The History Of Mankind (In 7 Easy Steps) Mike Maloney provides a clear explanation of how money is created. You may want to watch it more than once, and you’ll definitely want to make sure your friends watch it too!
Learning this will change your life, because it will change the choices that you make. If enough people learn it, it will change the world…because it will change the system . For this is the biggest Hidden Secret Of Money. Never in human history have so many been plundered by so few, and it’s all accomplished through this…The Biggest Scam In The History Of Mankind.
– Mike Maloney