Modern Money Mechanics
I just got back from lunch with Carlos Lara, the guy with whom I’m writing a book on Austrian economics and Nelson Nash’s “Infinite Banking Concept.” Carlos said he gave a talk in Oregon and a guy came up afterward and asked him where he learned all that stuff about fractional reserve banking.
“Murray Rothbard,” Carlos replied.
“Oh I thought maybe you had read Modern Money Mechanics. It’s all laid out there too.”
“Oh yeah? Never heard of it. Who wrote it?”
“The Federal Reserve.”
And yes, here it is [.pdf]. I just thumbed through it at Carlos’ house, but he said it’s really good. In very understandable prose, it explains the mechanics of money creation through fractional reserve banking.
So enjoy. These are the schematics to the Death Star. But no one had to give their lives to smuggle it into rebel hands. The Fed was giving this thing away for free until 1994 I believe.
