Credit Crisis: Banks Need Debt to Create Money

Under the Federal Reserve Act, money is created only by lending. So a "credit crisis" is really a money-supply-is-shrinking crisis. Actually in this situation that we have now is there is too much debt and the printing presses have to keep running so that obligations can be met. Derivatives, over expansion of the Bond markets ect. too much debt!

During the last moments of the Currency Crisis there were some of us who wanted to warn the world that we cannot keep printing fiat money backed by nothing and hope to survive the next economy