Banking: Are there loop holes in regulations to beat the system?
I'm sure there are plenty of people here far more knowledgeable on banking regulations then I am so hopefully you can answer my questions on this subject.
I had the thought that since the fractional lending system only requires the bank to have a small amount of what they are actually lending out. What road blocks are preventing me from taking a little start up currency and making my own bank for myself only? Where I could lend myself interest free loans to myself? The bank wouldn't be making income so would the non income taxes imposed be to over bearing for a one person bank. If so what is stopping a larger group of people from creating a bank where instead of interest on loans they just charge the fees to cover all the imposed taxes.
Any thoughts?
Barter for services.
Better way is to stop borrowing or paying taxes all together, by not using Federal Reserve money. If you don't use their money, they can't tax you.
If you did what the FED does
If you did what the FED does you'd be arrested for fraud.
If you are looking for a way to protect your wealth well then you must understand that even if the US falls into depression wealtgh is not lost. Wealth is transfered. If you know were to put your wealth you will be able to keep it. You could even profit.
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It wouldn't work
due to basic human nature. If there is opportunity to invest money in a savings account in another bank that earns interest people are going to do that instead of letting their money sit in your bank for free. You could do it for a short time with people with the same interests but it wouldn't last because of the profit motive. People would pull their money out to take advantage of profitable uses for their money.
But, yes there are regulations. I don't know about for your type of bank, but for an ordinary bank you have to get a charter (permission from the state) to start a bank, which requires that you have at least $5 or $6 million in capital. Otherwise, they'll shut you down.
My idea was only for a lending bank only
there wouldn't need to be anymore money in the bank then was required to allow for the loan to be made
they tried that in indiana and all currency owned by
the "bank" (in coin form only i believe) was confiscated without any justifiable reason and nothing or noone was ever charged, including those(aka:the government) that confiscated the currency which,btw, was gold and silver.
~peace
~peace
Not sure if I understand
Let's say I wanted a loan. Someone would give it to me for free? There is no money in the bank? How would it get there in order for me to get the loan?
The whole thought is
how could I personally practice fractional reserve lending to myself like a bank does with their clients and for it to be legal? All the work that the bank does I could do for myself like making the loan and scheduling payments.
If this was available then I could theoretically make loans to my self interest free by just having the fractional amount needed for the loan upfront. The problem is being recognized as a bank I take it so that it is legal to do fractional reserve lending.
What do you mean by
a loan to yourself? If you already have the money, why would you want to loan it to yourself? That doesn't sound coherent.
If I'm not mistaken
Modern banks don't need to have all the money they are lending out only a fraction of it? So a bank can loan more money out then it actually has, I keep hearing 9 to 1. So if I could do fractional lending I could lend my self $900 when I only had $100 to start with. I would have to pay the bank back that $900 and at the end of the loan the only thing that would be left was the $100 that I originally had and any interest on the $900 that was paid to the bank. In this case it would be 0.