Demystifying Money Creation: Unveiling the Secrets of “97% Owned”

In the realm of finance comprehending the intricacies of money creation is, like unraveling a kept secret. The documentary “97% Owned” takes us on a captivating journey into the world of money exploring its origins, beneficiaries, and its profound impact on both international levels. Join us as we delve into this subject and uncover the hidden mechanisms that shape global dominance and national control.

The Digital Age Dominance

The modern era has witnessed a transformation in the nature of money. Nowadays an overwhelming majority of money exists in form overshadowing cash in terms of notes and coins. This shift has been truly revolutionary carrying implications for our systems.

The Influence of Banks

At the core of this transformation lies the power held by banks. These institutions play a role in creating money through loan issuance. It may come as a surprise to many. Banks don’t merely lend out existing money; instead, they actively create it. The interest earned from these loans serves as a source of profit, for banks.

A Historical Perspective

To truly grasp the evolution of money creation, we must venture back in time. Prior to the 1840s, private banks were responsible for issuing their own banknotes. However, a significant shift occurred when legislation transferred the authority to create money to the state, with the Bank of England emerging as the sole issuer of paper notes.

Challenging Misconceptions

“97% Owned” challenges common misconceptions about banks. Instead of merely lending out depositors’ money, banks create money when they issue loans. This revelation is pivotal in understanding the mechanics of our modern money system.

money creation

The Digital Revolution

In an age dominated by electronic transactions, the growth of bank demand deposits and electronic money takes center stage. This shift emphasizes the pressing need to comprehend the intricacies of the modern money system.

Profit in the Pixels

One striking aspect of this transformation is the profitability of the banking sector in creating electronic money. Unlike the production costs associated with physical cash, the creation of digital currency is nearly costless. This stark contrast amplifies the influence of banks in shaping our monetary landscape.

Money Creation

Banks vs. Governments

A significant disparity emerges when we compare the money created by banks and that created by governments. Banks hold a much larger share, raising questions about the balance of power in our financial world.

The Federal Reserve’s Example

The documentary offers a tangible example from the annals of the Federal Reserve during the financial crisis. It vividly illustrates how central banks have the power to create money electronically, a concept that often seems elusive to the public.

The Challenge of Understanding

“97% Owned” underscores the challenge of educating the public about the money system. The unconventional reality that banks can create money “out of thin air” often elicits disbelief. This lack of awareness highlights the need for greater public understanding of these complex concepts.

 Finance Documentary


In conclusion, “97% Owned” peels back the layers of mystery surrounding money creation. It shines a light on the vital role commercial banks play in shaping our modern monetary system. As we navigate the intricacies of finance, let’s remember that understanding the dynamics of money is not just a financial prerogative but a civic duty. The future of our monetary system demands open dialogue, especially in times of economic uncertainty.


How does “97% Owned” relate to real-world finance?

97% Owned” is a documentary that delves into the creation of money and its impact on our financial systems. It offers valuable insights into the modern money system, which has significant real-world implications.

Why is understanding money creation important?

Understanding money creation is crucial because it empowers individuals to make informed financial decisions. It also sheds light on the dynamics of our economic and monetary systems.

What role do commercial banks play in money creation?

Commercial banks play a substantial role in creating money by issuing loans. This process is central to the modern monetary system.

How can we improve public awareness about money creation?

Improving public awareness about money creation requires effective education and communication strategies. Simplifying complex concepts and fostering open dialogue are essential steps.

What can we learn from the Federal Reserve’s actions during the financial crisis?

The Federal Reserve’s actions during the financial crisis highlight the central bank’s ability to create money electronically to stabilize the economy. This example underscores the importance of central banks in monetary policy.

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