On Tue, Dec 19, 2017 at 01:48:36AM -0500, grarpamp wrote:

The Biggest Scam In The History Of Mankind - Hidden Secrets of Money Part 4 https://www.youtube.com/watch?v=iFDe5kUUyT0

Excellent series by the way. Episode 4 has a basic technical error (which doesn't really matter for the common understanding of the massive fraud which is the Federal Reserve system of course...) and that is a (intentional or otherwise) misunderstanding of fractional reserve banking: When person A deposits say $100 of salary, yes, the bank is free to "loan it out" - but the bank never actually loans it out. The "fraction reserve" is the actually the ratio of reserves (deposits made by you and I) that the bank must keep on hand, proportional to the amount of loans it --creates-- - the Federal Reserve is quoted a couple times, and the quotes are correct, but the dialog is probably dummed down (even as amazing as it sounds) so that it's not so scary, or more likely just so it's easier to understand. In other words, the bank does not loan out $90 of your $100 deposit so as to maintain its fractional reserve - it keeps the full $100 on deposit, and loans out $900 - meaning that your $100 is the fraction "on reserve", and out of $1000 ($100 deposit + $900 loaned), your deposit is the 10% figure. What follows from this is that your deposit money is never loaned out, it's just "at risk" so to speak. Which means that the moneys loaned are quite literally created on the spot - or technically, created when the bank writes out your bank cheque for your new car/ house etc for which you have taken out the loan (and promised to repay that loan, which is the true security for that loan, which is what the banks use to justify creation of those loan monies). Fractional reserve requirements were widely reduced from 10% to 3% in America (in the 1980s?) and I think nowadays down to something more like 1%. $100 deposit, with a 3% fractional reserve, of course means that $3,233.33 "can" be loaned out, based on your $100 deposit. (BTW, loan money is not quite "created", in the sense that it's only temporarily created, as in, as you repay the capital amounts, those original loan amounts are literally wiped from the computer - sort of analogous to DC coin destruction to build in some sort of depreciation; BUT, interest payments of course are the PROFITS of the bank, and those interest payments were not also created - they are extracted out of the economy, from other peoples/govt's loans, so without ever expanding loans, the entire ponzy economy will quite literally collapse... Really puts the comedic lie to the banks "writing off" "bad debts" and claiming tax credits for doing so... total, utter deception! ) As it is…