“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
The below slides are meant to explain the form of modern banking known as “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)“. This article was originally published August 6, 2009.
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. In other words, fractional reserve banking is dead.
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Jake Towne – The Problem With the Dollar (July 2009)
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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.
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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.
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Other Articles on this subject by the Author
R.I.P. – The London Gold Pool, 1961-1968
The Summers Gold Price Suppression Scheme
END THE FED…. Then What? The Transition to Sound Money
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’s Great Lie – The “Gold Standard” and the Great Depression (PART 2/2)
Original article from 2009
http://towneforcongress.com/economy/fractional-reserve-banking-in-pictures-part-12
Trackbacks/Pingbacks
[...] Part 1, Fractional Reserve Banking in Pictures, we saw how the banking system creates fraudulent money by creating new money on top of old. The [...]
[...] If one owes a bank a thousand dollars, he has a problem. But if one owes a bank a billion dollars, then the bank has the problem. From the four years I spent in China, I assure you this truism is not lost on the Chinese, though one must never forget the banks’ nifty little ability to create their own money. [...]
[...] If one owes a bank a thousand dollars, he has a problem. But if one owes a bank a billion dollars, then the bank has the problem. From the four years I spent in China, I assure you this truism is not lost on the Chinese, though one must never forget the banks’ nifty little ability to create their own money. [...]
[...] If one owes a bank a thousand dollars, he has a problem. But if one owes a bank a billion dollars, then the bank has the problem. From the four years I spent in China, I assure you this truism is not lost on the Chinese, though one must never forget the banks’ nifty little ability to create their own money. [...]
[...] physical linen – it is merely electrons in bank accounts, which is shown simply here, “Fractional Reserve Banking in Pictures.” This is really just an indirect way to tax anyone who holds dollars. Anyone who whines [...]