Is Fractional Reserve Banking Ethical- Part I- An Introduction

via The Most Revolutionary Act, thank you

Inverted logic

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Introduction:

The norms of modern banking are something that most of us take for granted. Few ever question the inner mechanics of such transactions we engage in daily. However, banking has been steeped in a fog of mystery due to complex operations and seldomly failing to fulfill any obligated services. Beyond questioning the functions or internal workings of modern banking even fewer people recognize that most people are participating in a fractional reserve banking system. In a random survey of average people, you will be hard-pressed to find anyone aware of what fractional reserve banking entails nor any intimate understanding of its implications. That is to be excepted considering this is a niche area of expertise that is truly the domain of an economist, banking/ financial specialist. This assumption relieves us of any responsibility to cultivate a better understanding of these systems. After all, this…

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4 thoughts on “Is Fractional Reserve Banking Ethical- Part I- An Introduction”

  1. Interesting topic. I’ll have to study this more. It’s not a once-over read.

    I like that mention of people being told it’s basically someone else’s job to understand. That’s so not true and a typical industry claim to get people to move on without looking.

    Anyone–and I do mean ANYONE, who deflects any answer to a question this important [as well as other topics] should be looked at as working for industry. I don’t care who they are. For all intents and purposes, It is a standard corporate strategy to avoid and deflect.

    One topic that really bothered me is how Dodd-Frank was destroyed by the president before our current one. When a person deposits their hard-earned cash into a bank [in the US and other countries], the depositor becomes an unsecured creditor and your money becomes the property of the bank.

    So whatever you do–don’t put your grocery money in the bank because if they decide to steal your money, all you’ll get in return is a scrap of paper saying you own shares in the bank. [There goes FDIC]

    I wonder how stewed paper tastes?

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  2. Thanks for posting this article, Pam. I think I might have mentioned to you before that I’m a member of Positive Money NZ, which has a very similar platform to the Social Credit Party (in fact I voted for Social Credit in the election).

    We are lobbying the government and Reserve Bank really hard to issue money directly into the economy to cover debts created by the COVID19 economic crisis. The first Labour government did this in 1936 to help NZ get out of the Great Depression. It’s a really uphill battle, though, because so few Kiwis understand where our money comes from (98% of it is created out of thin air by Australian banks as loans).

    Otherwise we face a mountain of debt and severe austerity once this is all over. Here’s the Positive Money website:

    https://www.positivemoney.org.nz/

    And here’s an interesting interview from Guns and Butter about whether the collapse of the economies of 193 countries was deliberate or not and what the likely motivation was

    https://www.wbai.org/archive/program/episode/?id=17348

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    1. You’re welcome Stuart. And yes you did mention this. Apologies I intended getting back to you. It’s been a real busy year, things will slow down in a month so I will pay more attention to this issue & post your links then. Thanks so much for taking the time.

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