Money for loans and mortgages is created the moment you sign the papers. No bank is loaning you their money. You are creating the money the moment you sign. The bank makes 100% profit on principle and interest via your work at your job. Fractional Reserve Banking is the greatest scam in history.

Fractional Reserve Banking allows the loaning of money by banks at 9-10 times their deposits out of thin air. 

This practice is bringing down world economies as the debt is far greater than physical cash that exists. There is not enough physical cash in the world to give to everyone if there was a global run on the banks, retirement accounts and all investment vehicles.

There is absolutely nothing backing fiat money created by fractional reserve banking. The entire system is based on faith. 

Banks base their ability to lend you money on your credit and ability to repay loans they give without actually having the money on hand. You create it when you sign, YET, they still need to qualify you even though they are not loaning you their money. A Hidden Secret to keep those from not knowing the scam!

"Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States" — Sen. Barry Goldwater (Rep. AR)

Tony Toto

Benevolent Pedagogue

Skype - tony23732

 

 

 
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3 Comments on Fractional Reserve Banking

JUL
01
2011
126,303 Points 2 Featured Posts Outside Blog

There is no longer any such thing as money, there is only debt.  Read the bills in your wallet.  They are simply promises to pay from an entity unwilling, or unable to actually provide you that which is Constitutionally money.
7:27pm • #1
126,303 Points 2 Featured Posts Outside Blog

One other point, if banks were only leveraged to the legal limit you mention, we would not have a problem.  The issue is that the biggest banks, and more specifically Bank Holding Companies such as Goldman Sachs are leveraged at closer to 30 to 1.  Factor in the bogus Mark to Fantasy rules they use for evaluating real estate assets, and that figure could be closer to 50 to 1.  All of this is supposed to be offset by Credit Default Swaps (CDS), but since they are not exchange regulated nobody knows how many of these are empty promises.
7:39pm • #2
JUL
02
2011
315,709 Points 1 Featured Post

Ron, I'm well aware of all that you have said and thank you for providng the additional info for the readers.
9:03am • #3

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