An independent movie on the question “Where does money come from?” became the most successful film on banking on the internet and was praised by notables like Catherine Austin Fitts, David Korten, Hazel Henderson, and Tom Greco. With over 2 million downloads between 2006 and 2009 and translated into 20 languages, the film has remained to this date one of the extraordinary teaching tools and inspiration for the monetary reform movement. This program is an update of TUC Radio’s 2009 Film on Radio version.
Even though Grignon has since produced two sequels that deal with bailouts, and stimulus packages, and how to create a nurturing economy, this first film remains a must see in the opinion of Korten, Greco, Elizabeth Kucinich, and that of many influential monetary reform organizations. Indeed the film has become more important today as the question of how to prevent another banking bailout remains unanswered.
In part one of this double program Paul Grignon makes the case that only a very small part of our money supply is created by the government. The vast majority of money is created by banks whenever a loan or mortgage is made. Banks, which are private institutions, are given enormous power to make and manage money and governments in most countries borrow the money for their operations from bank and have the taxpayers pay the interest.
Among the unforgettable quotes included in the film is this one by Congressman Wright Patman “I have never yet had anyone who could, through the use of logic and reason, justify the Federal Government borrowing the use of its own money… I believe the time will come when people will demand that this be changed…(and) when they will actually blame you and me and everyone else connected with the Congress for sitting idly by and permitting such an idiotic system to continue.” Patman was chair of the US House Committee on Banking and Currency from 1965 to 1975, the year before he died.