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staywithaces1984 (November 30, 1999 at 12:00 am)
The fractional reserve system is said to benefit the economy by creating more money for trade then actually exists. This is accomplished through a series of loans from banks, purchases made with the money and the money ending up back in another bank ready to be loaned out again. The money created is not real but a calculation of money movement through banks over time. Time is often an over looked element when trying to understand how money creation happens.
staywithaces1984 (November 30, 1999 at 12:00 am)
If it weren't for the Federal Reserve's backing a lot of banks would have a hard time attracting depositors. Average people would be hiding their money in safes at home. The backing of the Federal Reserve gives average Americans faith in the banking system, without it checking account deposits would be a fraction of what they are today.
patbarkley (November 30, 1999 at 12:00 am)
@ch3rok33jo3 Or they know more about banking than a 3 year old?
ch3rok33jo3 (November 30, 1999 at 12:00 am)
Twelve people are either bots or government agents. Maybe they're people who just had a nervous breakdown. The truth can make you go insane.That's how illegal our money system should be.
patbarkley (November 30, 1999 at 12:00 am)
@BeantownJim Why?
BeantownJim (November 30, 1999 at 12:00 am)
Erradicate the Fed! Restore Glass/Steagle.
bawitback (November 30, 1999 at 12:00 am)
Ron Paul 2012 For President
patbarkley (November 30, 1999 at 12:00 am)
@8DeaD7 How would banking work without Fractional Reserve Banking?
8DeaD7 (November 30, 1999 at 12:00 am)
Abolish Federal Reserve, Fractional Reserve Banking and all corrupted organizations! Corrupt politicians and corporations aswell! LOVE AND FREEDOM
patbarkley (November 30, 1999 at 12:00 am)
@AdversusHaereses Do you understand how loans are made? |
