Illuminati Banking System - Federal Reserve New World Order

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Uploaded by on Dec 5, 2008

Illuminati Banking System - Federal Reserve New World Order


Fractional-reserve banking is the banking practice in which banks are required by governments to keep only a fraction of their deposits in reserve (as cash and other highly liquid assets) with the choice of lending out the remainder, while maintaining the simultaneous obligation to redeem all deposits immediately upon demand. This practice is universal in modern banking.
http://en.wikipedia.org/wiki/Fractional-reserve_banking



Money creation

The process of fractional-reserve banking has a cumulative effect of money creation by banks. In short, there are two types of money in a fractional-reserve banking system: 1. central bank money (money created by the central bank regardless of its form (banknotes, coins and electronic money loaned to commercial banks))
2. commercial bank money (money created through loans in the banking system) - sometimes referred to as chequebook money

When a loan is funded with central bank money, new commercial bank money is created. As a loan is paid back, the commercial bank money disappears from existence.



Effects of an increased money supply

Fractional reserve banking involves the issuance and creation of commercial bank money, which increases the money supply on an exponential basis. According to the quantity theory of money, this increase in the money supply leads to more money "chasing" the same amount of goods, which leads to inflation.


http://en.wikipedia.org/wiki/Inflation


In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. The term "inflation" once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation. Inflation can also be described as a decline in the real value of money—a loss of purchasing power in the medium of exchange which is also the monetary unit of account. When the general price level rises, each unit of currency buys fewer goods and services. A chief measure of price inflation is the inflation rate, which is the percentage change in a price index over time.

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Uploader Comments (911investigator)

  • can someone explain to me in an idiot way how with no debt there's no money

  • @BigMaleSpidaProd97

    If I lend you $10 then you have $10. If you pay me back then you have $0.

    All the money is created by banks and they lend it to us. If we pay it all back we will have $0.

    No debt = No money

  • how do these people get away with this? why do our leaders allow this to happen?

  • These Illuminati bankers are our real leaders.

    Our government and media are covertly controlled by the Illuminati bankers political plan that has existed for centuries.

Top Comments

  • the reason it`s called "the american dream" is because you have to be asleep to believe it.

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  • @gitarkin Yes, the system is designed by pure geniuses.

  • 17 thousand views...just dig a hole now. The people are deaf dumb and blind. They win we lose.

  • "indeed , the love of money is the root of all evil"- 1Timothy 6:10a and i want to add that "the "System" the bible mentioned in 1John 2:15 - Do not love the world or what is in it "... this "world' - meant the Satanic-Evil System ...in which one of these was "plainly and sufficiently explained in this video"... thanks for this expose..

  • Is this the same thoery as Zeitgeist The Movie: Federal Reserve Bank? Because in that movie I dont think they mentioned the illuminati

  • Banksters are the real gangsters.

  • @NorthCarolina51 Wow so if i can buy a car for 10 grand that makes the whole system legit huh, wake up to the greater problem.

  • Inflation is not a bad thing. In 1909 basically one of the cheapest cars you could buy was the model T for about $850. The average salary at this time was between $200 and $400. Now you can buy a car for around $10,000. The median salary for men in the US in 2007 was $45,113. What exactly is the problem?

  • @JimisJames In America we don't have "leaders." They are supposed to be public servants. We allowed this to happen. It's officially called a "chosen action." No one complained when Roosevelt stole our gold or when Johnson stole our silver. So, we don't have any gold and silver by our own choice which was ultimately the result of our personal greed and stupidity. We also forgot our ancient law... A usurer is put to death. And rightfully so. Their day is coming. Keep educating yourself.

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