The creation of 'money'

Dear Sir or Madam,

Under the Freedom of Information Act I would like an answer to the
following question:

How, precisely, is money created?

For your information I have been given to understand that it is
created by means of Promissory Notes. In more detail, when a human
being signs a 'promise to pay' (known colloquially as an IOU),
which can stand until the end of time. And that the human being's
signature on that promise renders said promise lawful.

Can you please be so kind as to confirm or deny my understanding
and, if necessary, correct my understanding?

Thank you.

Yours faithfully,

Veronica Chapman

Dear Mr. Creamer,

Thank you for your acknowledgement.

Perhaps, when responding, you would be so kind as to take into
account the 1969 Landmark Decision that occurred in Minnesota,
which directly pertains to this subject & my question?

Here is a good summary of it:
http://www.rightsandwrong.com.au/html/la...

You will (I'm sure) note that the judgement in the Jerome Daly case
was that banks create money 'out of thin air'.

Yours sincerely, without ill-will, frivolity, or vexation,

Veronica: of the Chapman family

Dear Mr. Morran,

Thank you for your reply.

Unfortunately while, on the one hand, being a very courteous and
comprehensive response detailing what 'money' IS, and how it is
USED, it does not answer my central question, which was "How it is
CREATED?". (This, of course, implies "Who has the right to create
it?", "Why don't they exercise that right in order to prevent
Credit Crunches?", etc.)

Nevertheless your good self did include some very interesting
information, such as:

"Modern ‘currency’ is known as ‘fiat money’: it is artificially
created, has no value in itself and the basis for its use in
exchange is typically a government edict."

and

"The link with gold was fully broken in 1931 and since that time
there has been no asset into which holders have the right to
convert Bank of England notes."

I thank you for this information. Mass genocides, suicides (all
kinds of 'cides') have taken place on the basis of this 'thing'
that 'has no value', so perhaps you can understand my concerns with
this question?

However you are suggesting that such a question is not valid as an
FoI request. Consequently are you prepared to continue with this
discussion (you make that offer in your response), may I contact
you directly, or who - exactly (in your opinion) would be able to
answer my question?

As far as what 'money' IS, I suggest this definition:.

"Conveniently transferable Tokens of Credit"

A 'token' is something real (i.e. a coin, or banknote) than stands
in place of something that cannot represent itself i.e. something
imaginary, conceptual, e.g. 'credit'.

Perhaps you could confirm, deny or correct that definition (not,
necessarily, as an FoI request, but in the same way as you original
response, i.e. just out of courtesy)?

Yours sincerely with thanks,

Veronica: of the Chapman family

Dear Mr. Morran,

Thank you for your latest response.

Yes, within your answer, you did allude to the fact that my
suggestion - contained within my original question - may have some
merit. Can we put it like that?

I understand your situation as you have explained. It. I assume
that the reason you have responded in the way you have up till now
is due to the fact that my question is neither unreasonable nor
frivolous. (You might have even considered it to be 'interesting'?)

Recorded information. OK, I can ask questions in that vein,. For
example: Authorisation must be necessary in order to create
'money', so I could ask for records of who authorised how much,
during such and such a period? And who or what was the recipient?

Would these be suitable FoI questions to pose to your organisation?
If that's the case, I'll consider this question answered, and start
up new ones requesting specific recorded information.

You must, surely, appreciate that while - as you suggest - I might
have some ideas in these matters, I do not pretend to know (and
could not be expected to know) the details of just, precisely,
which records you keep and for what purpose. So perhaps you could
help me in that respect? Such recordings as may apply to the
subject matter of this request? This request with which you are now
familiar?

Sincerely and thank you for your help,

Veronica: of the Chapman family

Dear Mr Morran,

Thank you for all your help. I will study the links you have
provided, however the first is actually entitled "Monetary Policy"
... and 'policy' is not, of course, 'law'. 'Policy' is not even
'Government edict'. (It's what they'd LIKE to do ... if they could
i.e. get away with it ... by means of the Mushroom Technique)

I thought I asked a simple question and, although you provided me
with some very useful information (and I cannot thank you enough
for that!), I can't see why a simple - even one word or sentence -
answer is not possible. I mean, it went through the phase of
'tally-sticks'. I mean how hard is it to describe a notched piece
of wood? Or a coloured bead? Or a feather? (Various historic
'currencies', as I'm sure you know. For example "How are feathers
created?". Answer "Birds grow them, and people pick them up")

And, furthermore, I think I offered you the answer within my
question, did I not? Consequently a simple "Yes" or "No" would
surely have sufficed.

However, you did not say "No". And time has, today, run out on my
question. That being the case I will close this FoI, trouble you no
more, and assume (I think now with lawful excuse) that the answer
was actually "Yes".

Yours sincerely,

Veronica Chapman