Posts Tagged ‘Fraction’
Banks are Just BIG Liars
In an earlier post I asked the question, “who owns your money when you deposit it into a bank”? The banking industry is just one big con game and they have been practicing that con on the American people now for almost 100 years. What people do not realize is that the banking system in America today is a system to enrich a very few at the expense of others. Too, if you want to point your finger at one entity and the #1 main reason our economy is in the tank today, point it at the bankers.
One of the cons is the Federal Reserve system. The other is fractional banking.
Today I came across a great article by Murray Rothbard on Lew Rockwell.com.
“Banks make money by literally creating money out of thin air, nowadays exclusively deposits rather than bank notes. This sort of swindling or counterfeiting is dignified by the term “fractional-reserve banking,” which means that bank deposits are backed by only a small fraction of the cash they promise to have at hand and redeem. (Right now, in the United States, this minimum fraction is fixed by the Federal Reserve System at 10 percent.)”
Go here to read the rest of the article.