" virtually all money is created out of debt by banks “extending credit” or giving loans. If all the debts of the world were paid off, there would be no money in circulation. How does this occur? Allow me to oversimplify, starting with government. When a government needs money, it creates bonds. These bonds represent debt. It then exchanges these bonds with its central bank, an institution granted the ability to create money. Of course, governments can also sell the bonds to the general public and even foreign nations to raise money, but that doesn’t actually create money—only banks can do that. Though considered investments, these bonds are really interest-bearing loans. If I buy a government bond for $1,000, I have actually loaned that amount to the government with the expectation that it will pay me back with interest accrued. Likewise, when the government sells bonds to its central bank, the central bank is technically loaning the newly created money, expecting interest payments. Bear in mind, both the government and the central bank are exchanging things invented out of thin air by essentially the transaction itself. "

― Peter Joseph , The New Human Rights Movement: Reinventing the Economy to End Oppression