How can any bank be solvent if they all practice fractional reserve lending?

  1. AngelTrader profile image59
    AngelTraderposted 6 years ago

    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.

  2. Clarke Stevens profile image77
    Clarke Stevensposted 6 years ago

    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.

  3. cbl2988 profile image61
    cbl2988posted 6 years ago

    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".

 
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