How can any bank be solvent if they all practice fractional reserve lending?
Fractional reserve lending is a gigantic confidence trick that allows banks across the globe to create money out of thin air and charge interest on it. Charging interest on money created out of nothing is a crime known as usury. Incredibly, governments permit it without question and a compliant judiciary accommodates banking fraud in the courts every day of the week.
It's good to be a bank. We've agreed (as voting citizens) to give them special privileges in return for providing a service to us all, and being subject to our rules and overview. In return, they can make a lot of money.
The funny thing is, they are not subject to our rules and overview (the Fed is a perfect example). Governments love fractional reserve banking and especially fiat currency. They allow them to run up huge deficits and pass the costs on to us via inflation. I wouldn't exactly call that a "service".
by SparklingJewel 6 years ago
Blame the Fed for the Financial Crisis ... The Fed fails to grasp that an interest rate is a price, the price of time. Attempting to manipulate that price is as destructive as any other government price control. To know what is wrong with the Federal Reserve, one must first understand the nature of...
by Sam Wickstrom 21 months ago
Will our debt based, fractional reserve banking economy collapse?What do you think? If it will collapse, when(within a decade)?
by Gary Anderson 7 years ago
I bet you didn't know, with the way the banksters treat you, that when you deposit to the bank, it is a LOAN to that bank.You need more respect, after all, they are the borrowers!!!
by AngelTrader 6 years ago
What is Fractional Reserve Banking?Any takers or are you all obsessed with Valentines Day!
by Gary Anderson 9 years ago
This guy is or was high up in the Fed. The fed is a PRIVATE bank, despite the lie on their website. The fed is owned by private stock and the US government owns none of that private stock. http://www.frbatlanta.org/publica/eco-r … hriszt.pdf
by Jack Lee 14 months ago
What do you think of this? Do you agree? what should the Fed fund rate be?My personal opinion is that the rate has been kept too low for too long. We need to raise the rate back up to about 3 or 4 percent in line with traditional rates...
Copyright © 2018 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|