Thursday, February 16, 2012

Fractional Reserve Banking: The Destruction of Capitalism

Taken from
WARNING: This post contains no humor.

Fractional reserve banking is destroying our economic system. It is nothing more than counterfeit and fraud, and is practiced by private banks across the globe. If you haven't heard this term before, there's a good reason: It's hidden from mainstream society. Because of this, it's able to continue to be practiced without any restrictions. Even many of those who do know about it (specifically lobbyists and corrupt politicians) do nothing about it out of fear and/or bribery. It's time to change; we must educate the public about the activities of (as James Madison called them) "the money-changers".

For those of you who know of this topic already, you are probably aware of HR 459 and are working to spread awareness. For those who are new to this topic, I assure you, this is not just a conspiracy theory. This is not an attempt to explain who assassinated JFK, this is not a blog for "9-11 Truthers", as they call themselves... this is a post that will attempt to inform and educate with as much data and logic as possible about global economics and what the private, central banks are doing to currencies worldwide.

What is fractional reserve banking?
Fractional-reserve banking is a form of banking where banks maintain reserves (of cash and coin or deposits at the central bank) that are only a fraction of the customer's deposits. Funds deposited into a bank are mostly lent out, and a bank keeps only a fraction (called the reserve ratio) of the quantity of deposits as reserves. Some of the funds lent out are subsequently deposited with another bank, increasing deposits at that second bank and allowing further lending. As most bank deposits are treated asmoney in their own right, fractional reserve banking increases the money supply, and banks are said to create money. [source:]
A wordy explanation, indeed. There is a lot of information on Wikipedia from credible sources on the subject, but since this is an informal approach at educating, I will direct you to a great fictional story that not only explains fractional reserve banking, but mirrors our current economic system in the process.
Please read: I Want the Earth Plus 5% 

What does this have to do with our economic system?

Most don't realize, but our "federal" reserve, the bank that controls the government's funds, is actually a privately-owned central bank, and is not owned or even controlled by the US government as the name suggests. This private bank practices fractional reserve banking in such a devastating manner, that it is the sole reason for our country's recessions and depressions.

Since I don't have time to re-invent the wheel, I will point you to a documentary that explains the subject much better than I ever could. I warn you, this will require an open mind, attention to detail and fact-checking on your own time (as with all sources of information, you must ALWAYS fact-check as to not be mislead). Ladies and gentlemen, I present to you "Money Masters" in its entirety:

If your mind was blown as much as mine was after watching this documentary, please spread the word. We must inform the mainstream what's really going on behind their money.

Audit The Federal Reserve: HR 459
Ron Paul 2012

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