There is nothing super-complicated about sound money. Rather, the truth is pretty simple. In cahoots with the central bank, the government prints unbacked currency. Most dollars are not 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 [...]
Tag Archives: fractional reserve banking
Fractional Reserve Banking is Dead (Part 2/2)
Since the 1990s, the FED has change accounting rules so even the loose ~10% fractional reserve requirement could be thwarted. We live in an era of paper tickets. In 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 reserve [...]
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 The below [...]
Recent Comments