"Money is essentially a relationship between credit and debt and always has been."
"The vast majority of money in circulation today is created by private and commercial banks."
Buy the book, download an overview,
read some more notes on the subject
on the NEF website.
And it's clear that amongst the people who do not understand this are politicians. The MP for West Suffolk, Mathew Hancock, recently said in a parliamentary debate:
But of course it is simply not true that the central bank is the monopoly provider of money. As this and other videos show, money is created by banks, out of nothing, all day every day. In fact the vast majority of money in circulation was created by banks creating credit."Because the central bank is the monopoly provider of money and the lender of last resort, it must share a common strategy with the Government even though it is vital that its operational decisions on interest rates and financial stability are independent." Hansard 6 July via They Work for You.