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By Sue Peters.

Private commercial banks create what we all use as ‘money’. This fundamental fact is not taught in our schools. Why? The answer: because it is the power supply to the ruling elites of our American society. This series is called The Money Matrix because it explains all the ways the money-creation power, wielded by American elites, has molded our society. The Money Matrix has molded our systems of war and peace, education, medicine, media, telecommunications, government with its national intelligence agencies, etc.

U.S. history can be viewed as a power struggle between public control and private control of money (1). Beginning with the signing into law of the U.S. Constitution, Congress used its constitutional power to issue money, but, at the same time, states chartered private commercial banks to issue bank credit (‘bankmoney’). Congress created the money for public needs. Banks created bankmoney for private profit and power.

Sovereign money. Money issued by a government through its legal authority is called sovereign money (2). The legal power of Congress to issue money is found in our U.S. Constitution:  Article I, Section 8 — “Congress shall have Power…to coin Money, regulate the Value thereof, and of foreign Coin.” Back in 1789, the word ‘coin’ meant any form of money, such as metal coins, paper money, written ledger entries, etc. There was no debt associated with sovereign money. Nobody paid interest on its use. The government spent it into circulation, and it passed from person to person until collected back as national taxes. Today, coins are the only sovereign money issued by the government – a minuscule part of our money supply.

Bankmoney. By contrast, bankmoney is issued by commercial banks, chartered by national and state governments. Whenever a commercial bank makes a loan contract with a borrower, the bank CREATES bankmoney in the loan account of the borrower in the form of a deposit. The borrower spends this deposit into the economy, and it circulates between checking accounts in the banking system. Therefore, the bank has CREATED what we all use as money. But – this bankmoney is debt, and interest must be paid on it to the bank! Bankmoney is usury! Today, 97% of our money supply is bankmoney.

For example, I am a borrower of JPMorgan Chase. I sign a loan contract with JPMorgan Chase, and the bank CREATES a deposit in my JPMorgan Chase bank account for the loan amount, say $10,000. Of course, the loan contract says that I will repay $11,000 – the additional $1,000 being the interest to the bank. Note: the bankmoney for the interest is never created by the bank. This means there is never enough money to pay off all the bank debts. Some borrowers will have to default, and the bank will get their collateral. Today, the 1% has used the bankmoney system to concentrate most of the wealth of the world.

Say this 15,000 times: “The bank makes a loan and CREATES the deposit in the borrower’s account.”

And the dollar bills we get from the bank for their bankmoney? Isn’t that sovereign money? No. Dollar bills are issued and sold by the twelve private Federal Reserve Banks to their member commercial banks (who own all shares in the Federal Reserve Banks). According to the Federal Reserve Act, dollar bills are the DEBT of the U.S. government.

We Americans have grown up in a matrix created by our manipulators, the financiers of the Federal Reserve and Wall Street. We are led to believe the battle is between the Democrats and the Republicans, but this is part of the matrix cinema on TV. There is no difference between the two parties – both protect the secrets of the money power and do its bidding.

Let’s turn our sights to the power of the multinational corporations. Again, this is part of the matrix cinema. Most of the multinational corporations are dependent on loans from Wall Street banks, renewed over and over, year after year, with a constant stream of interest flowing to the banks.

If you have the power to create what everyone uses as money, you will eventually own the world…and the 1% is almost there (3). Obscene economic inequality. Starving of the real economy where we all live, and shamelessly inflating the speculative financial markets.

Today the Money Matrix rules the world, but it can be overturned (4). To begin this fight, its secrets must be exposed.


This essay is part of a ‘Money Matrix’ series on the Money Power, being published in the monthly Newsletter of the Green Party US Banking and Monetary Reform Committee (BMRC). You can access the Newsletter by going to the website,

Future articles in this series will discuss the Money Matrix and its relationship with:
     Part 2 – War
     Part 3 – Education
     Part 4 – Medicine
     Part 5 – Media
     Part 6 – Telecom Industry
     Part 7 – U.S. Intelligence Agencies


  1. “American Monetary Institute.” Accessed April 1, 2021.
  2. S. Zarlenga, The Lost Science of Money. American Monetary Institute Charitable Trust (2002). pp. 34.
  3. J. B. Glattfelder, “Who Controls the World?” TEDxZurich (2012). Accessed April 2, 2021.
  4. “Green Party Platform,” Section IV. Economic Justice and Sustainability, N. Monetary Reform (Greening the Dollar). Accessed April 2, 2021.


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Pat Barry
Pat Barry
1 year ago

Love you Sue Peters! Values over self. ❤️

Roger Sparks
Roger Sparks
2 years ago

I noticed your post only moments ago. Interesting take on gov. vs private. So true that gov can only borrow from the private side of the economy. When money is created, the incremental increase in money supply has value because an economy is in existence already (which uses the same money). Hence, the workers who built over time have their monetary reward (for building) in the form of money waiting to be spent. Any new money coming into the system introduces new monetary competition for whatever it was that they built. This new competition has both good and bad effects.… Read more »

Elspeth Crawford
Elspeth Crawford
2 years ago

Keep writing, I will keep sharing. Wish I had a bigger platform but all I can do is try. I do have a website, Transitional Space, for my thoughts which are based in psycho-social understandings as far as I can get insights into such a complex field. As Martin Luther King said, money is a causative injustice allowing the many derivative injustices to multiply, including making our own home unliveable.