Fractional Reserve Banking in Pictures (PART 1/2)

"The few who understand the system, will either be so interested in its profits, or so dependent on its favors, that there will be no opposition from that class. The great body of people, mentally incapable of comprehending the tremendous advantages, will bear its burden without complaint."

- Lord Rothschild, European central banker

August 6, 2009 

The below slides are meant to explain fractional reserve banking as simply as possible using pictures.  The presentation itself can be found here, and a written description and documentation in "The Money Matrix - How the FED Works (PART 6/15)". 

The below demonstration assumes a reserve requirement of 10%, which is the figure typically given by the banking industry and financial experts.  However, in Part 2 I will demonstrate there there is effectively NO set reserve requirement though the banking system obviously carry some level of cash reserves.  I alluded to this previously in "Off a Cliff with No Airbags: The FED Banking System Quivers in Fright".

 

*****  Part 2 is now available here!!  Yes, Virginia, There are No Reserve Requirements

Jake Towne - The Problem With the Dollar (July 2009)

_______________________________________________________________________

Jake Towne is running for U.S. Congress in Pennsylvania's 15th District in the 2010 election as a citizen unaffiliated with any political parties.  Jake also writes at www.LibertyMaven.com and www.CampaignForLiberty.com.  A master campaign presentation for internet viewing is available.  A novel campaign website built by Raging Debate, TowneForCongress.com has recently opened.  [Reach the Author Here!] 

 _______________________________________________________________________ 

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

As always, unlike the NFL, the author grants full permission to allow any accounts of, rebroadcasts, retransmissions, repostings of this article to your blog or anywhere else in order to promote the Restoration of our Republic.

Veritas numquam perit. Veritas odit moras. Veritas vincit. Truth never perishes. Truth hates delay. Truth conquers.

Tu ne cede malis sed contra audentior ito. Do not give in to evil but proceed ever more boldly against it.

Summary of Articles and Bibliography for Jake Towne, the Champion of the Constitution (7/2/2009)

_______________________________________________________________________

Also by the Author

Jake Towne's Health Care Platform

Congress Responsible for Mini-Bailout of $6.2 Billion to Delphi and Next Week's Quarter-Trillion of New Debt

Why Foreign Aid? An Open Letter to Congressman Dent from Jake Towne

Social Security's $700,000 Resort Meeting and Our Future

Unlocking the Money Matrix - The Real Interest Rate (PART 12/15)

Unlocking the Money Matrix - The Summers Gold Price Suppression Scheme (PART 13/15)

_______________________________________________________________________

Other Articles on this subject by the Author

MY PROPHECY - The Federal Reserve Will End! A Money Matrix Addendum

 R.I.P. - The London Gold Pool, 1961-1968

 Gold and the "Average Man"

Ron Paul's rEVOLution Versus the "One Ring" of the Federal Reserve

Silver and Gold ARE Money (PART 1/2)

The Money Matrix - How the FED Works (PART 6/15)

The Money Matrix - Who Owns the FED (UPDATED PART 7/15)

The Federal Reserve - A Good Company to Work For?

 Bernanke Speak: Translated

Bernanke's Great Lie - The "Gold Standard" and the Great Depression (PART 2/2)