“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“.
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***** Part 2 is now available here!! Yes, Virginia, There are No Reserve Requirements
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. 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!]
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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.
Summary of Articles and Bibliography for Jake Towne, the Champion of the Constitution (7/2/2009)
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Also by the Author
Jake Towne’s Health Care Platform
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)
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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
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’s Great Lie – The “Gold Standard” and the Great Depression (PART 2/2)
http://towneforcongress.com/economy/fractional-reserve-banking-in-pictures-part-12
Trackbacks/Pingbacks
[...] individuals may indeed give to charity, these people are PAID to steal the people’s wealth by counterfeiting money. [Not that I want any of them polluting our minds by stocking library shelves with economic [...]
[...] banks and credit unions, can also create new dollars with the fractional reserve system, which is can be viewed graphically here. However, a proof I wrote demonstrates that fractional reserve banking broke down years ago, and [...]
[...] Today’s FED is a group of bankers who have the “Money Power” over all other banks and the money supply. This awesome power is like that of Tolkien’s One Ring, which controlled all of the other Rings of Power worn by men, elves, and dwarves. Can you imagine what YOU could do if you could snap currency into existence simply by writing a check to yourself? I’ve described this money power here “Fractional Reserve Banking in Pictures.” [...]
[...] Another author who nails it is Jake Towne, candidate for the 15th congressional (“greater Lehigh Vally”) district of Pennsylvania, in a piece entitled Fractional Reserve Banking in Pictures [...]
[...] will never betray my constituents to the immoral money creation schemes of the government’s bankers and always strive to protect their right to possess and exchange [...]
[...] will never betray my constituents to the immoral money creation schemes of the government’s bankers and always strive to protect their right to possess and exchange [...]