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MEP Godfrey Bloom: Why the whole banking system is a scam - Fractional Reserve Banking




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Séamusín's picture

Ok so

I was always under the impression that the way a bank worked was that it lent out up to 90% of what was deposited in it, and kept 10% on reserve. This doesn't inflate the money supply, and puts the onus on the bank to remain solvent. When I was told that every bank contributed to the inflation of the money supply, my whole understanding of reality was turned on its head.

Is this something that came around during the digital age? How did it work when banks only dealt with notes vice electronic credits? Can someone give me a few sentences to help me understand how this developed.

Séamusín

International Banksters Response to Mr Godfrey Bloom

Mr Bloom, We who have worked our way in and have been born to the inside of this monetary scam, have gained our multitude riches over the decades and centuries working this scam. We have provided you with good tasting cheep GMO McDonald's like foods that you enjoy devouring and will kill you just softly over many years without your knowledge, and you have the gall to deny us our just rewards? Just who the hell do you think you're dealing with Mr Bloom?

Cyril's picture

I found this is fairly well presented here:

I found this is fairly well presented here:

Money creation process

http://en.wikipedia.org/wiki/Fractional_reserve_banking#Mone...

With few disputes, seemingly. Corroborated by other sources you can use, like mises.org, or Silber's blog:

http://chrissilber.blog.com/books/

(e.g., Murray Rothbard's “The Mystery of Banking” at the bottom of page)

This also explains how come your (or mine) checking account didn't get a chance to see any positive effect**, to the exact contrary in fact, unlike what happens on all these charts:

http://dotxml.brinkster.net/2012/Misc/G4_Charts.pdf

Quite hypnotic, aren't they?

**(purchasing power-wise, that is)

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

BUMP.

BUMP.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

It's not Complicated

Cyril's picture

The true intent isn't even hidden nor disputed:

The true intent isn't even hidden nor disputed:

http://en.wikipedia.org/wiki/Fractional_reserve_banking#Econ...

"[...]Additionally, according to macroeconomic theory, a well-regulated fractional-reserve bank system also benefits [sic!] the economy by providing regulators with powerful tools for influencing the money supply and interest rates. Many economists believe that these should be adjusted by government to promote various public policy objectives.[...]"

(emphasis mine)

...

Is it, Mr. Paul FRAUD Krugman?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius