Fractional banking is one of the biggest money frauds ever perpetuated on the American people! The U.S. government allows banks to take your hard-earned money and create their own money out of thin air. When you make a deposit into your bank, the bank does not put that down on their books as a liability (which it should be), but as a asset. They take that same money (your money) and give it out the next day as a loan (another asset) to a customer, while charging 5-6% interest or more. If all the customers wanted their money at one time (“run on the bank”), the bank could not meets its obligations and would go into default. My contention is that any monies lent to bank customers should be monies that the bank owns, not their customer’s money. Your money stays in the bank and is there when you need it!! Not only would this make the bank honest, but would give your money more stability. If banks make bad investment decisions or have a poor business model, then they fail like any other business. Why does the U.S. government insure banks? Answer: the bank doesn’t have the money to pay its liabilities. I’m not against any business making money, but don’t do it at the expense of your customers or the American taxpayer! The next time you go to your bank to deposit money into your savings account, know that it’s not staying in the bank! Of course, the FED is a party to this! Your thoughts/comments??
Fractional Banking or Good Business?
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