Just got wise to this a few years ago. Still not sure I understand the mechanism totally. I wonder why nobody explains this to you in school? How would you answer this question? 95% of money in the US comes from: A) The US Mint prints it and distributes it to banks. B) The Federal Reserve creates it based on the US bond market. C) Private Banks create it out of thin air as a loan based on a pledge of repayment by the borrower. YouTube - Money As Debt (1 of 5) After watching this my understanding is that C is correct.