Money as Debt - Fractional Reserve Banking - How "Money" is Created (2/5)

This highly informative and easy to understand film covers what money is, how is has been dealt with in the past and how our current Fractional reserve banking system works. It explains how these institutions get away with robbing the unsuspecting public by creating monetary policies designed to enslave society, while keeping the system in a perpetual state of rising debt.

Please share it out

Category:

Education

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• fractional
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• Patriot4Liberty1776
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• Fiat

[Patriot4Liberty1776]

Correct our "debt" becomes our currency. Without debt we cannot create more currency.

Do your part to help share this out and advocate for ending the Federal Reserve which is not Federal and has not tangible reserves.

[psxwarrior]

Just watched it. Everyone needs to watch this video series.

[psxwarrior]

In other words, our country has no real wealth.

[MrDzver]

@Patriot4Liberty1776 i notice the documentary mentions 'the mint' creating money and is a federal agency, which is untrue because the federal reserve creates money and as you stated, it is definitely not a government agency

[tangium]

@jemslayer3

Yes. The part where the video trips up is in saying that the first bank can lend out more than the total amount (minus reserve requirement) of money deposited.

[jemslayer3]

@tangium Yea how you described it, is how i understood it. There was 100 initial dollars in the Fed. the bank lent out the 100 dollars and so on. now there is 400 dollars with only 100 initial dollars.

pretty sure we're on the same page?

[tangium]

@jemslayer3 If I'm not mistaken, they misinterpreted the fractional reserve system.

They're somewhat correct, in that it will create money, but the method is mistaken.

Take a deposit of 1,000 USD. Assuming the minimum required reserve is 10%, this means they can lend out 900 USD. These are then deposited into other banks, which can lend out another 90% of it, putting $810 into the hands of more people, who then repeat the process until there's nothing left. In this way, money is created.

[jemslayer3]

2-3 minutes. i dont understand.

how can a bank lend 10 grand when they only have 1 grand in reserves?

i understand fractional reserve banking. lets say a bank has 100 dollars in deposits, they can have a reserve of only 20 dollars.

but how can they lend out 60 dollars when they only have 20 in reserves?

banks cant print money only the fed.

plz help i didnt get that 2-3 minute part..

[psxwarrior]

@PeaceThroughDeceit But the reason I say that is because we don't manufacture our own iPods or TVs and such. Lost jobs, plus more "money" in the economy, equals even more inflation, but as I said in my comments below, inflation is being kept down by the dollar being the world reserve currency. Other central banks are getting that money. Not just other financial institutions in the US.

[PeaceThroughDeceit]

@psxwarrior The wealth exists in the material aspect. The problem is that the cost of these materials take more Dollars to purchase them when this new money is created. One way or another the Market has to clear itself.

[iansummerell]

This is all very interesting but the banks have used the money to bet on the hedge fund market. Lost it! Then the government are loaning them the money out of my taxes. Is that right?

[EagleTalonZ]

Don't forget! Today is Ron Paul's money 'bomb'!!! Go to w w w(dot)ronpaul2012(dot)com and donate! Also, if you purchase campaign items in the store it does go towards the donation amount. Join the r3VOLution and let's save this nation!! END THE FED!!!

[magiclard]

@BraveLittIeToaster thank you brave little toaster....this type of thing is very important-I havent replied for months because of ''not being too bothered about it'' and I guess thats how the world bankers/leaders like us to be. Going off to look at it now :)