Fractional Reserve Banking is Fraudulent - Ron Paul on CNBCSubmitted by We the People on Fri, 01/01/2010 - 11:32
Forward to 7:47:
A basic truth is that we may only loan what we have. If we have a dollar, we may loan a dollar. Yet, under the fraud of fractional reserve banking, banks loan ten times the money they actually have.
Fractional reserve banking is a Ponzi scheme whereby banks create money out of thin air through fraudulent book keeping, loaning non-existent money out at interest. It is no different than counterfeiting. In collusion, factional reserve banks counterfeit up to 10 times the amount of money that they actually have deposited, and charge interest on it all. Since money represents labor, fractional reserve bankers are effectively robbing the value of everyone's labor through this fraudulent scam.
9 minute video explaining the fraud of fractional reserve banking combined with fiat currency using the Federal Reserve's own documents:
47 minute video explaining the history of fractional reserve banking:
"Bank runs instruct the public in the essential fraudulence of fractional reserve banking, in its essence as a giant Ponzi scheme in which a few people can redeem their deposits only because most depositors do not follow suit."
- MURRAY N. ROTHBARD