Fractional Reserve Banking / Greenbacks

I’ve just finished watching The Money Masters which is both fascinating and rather disturbing and it has got me thinking…

Obama has been spouting on about change for the greater good of the American people.

With new leadership, the current banking crisis and the will of people to change, is there any chance that Barack Obama will give two fingers to the scum-sucking, greedy few who control the money supply in America, namely the Federal Reserve.

The producers of the Money Masters have suggested a simple solution to Government Debt; the Government printing greenbacks as opposed to issuing bonds to the Federal Reserve to print notes and further indebt the US taxpayer. This would be coupled with the gradual termination of fractional reserve banking.

Obama will be risking his life by doing this, so will he do it?

I think a couple of good 'ole boys would take him out before he even got close.

Obama would not have got as far as he has if he harboured such thoughts,he is there to maintain the status quo.

If he did decide to turn against the people who put him there and do the things you suggested,the good 'ole boys/crazed gunman/terrorist would be employed,or he might have an “accident”.

Bankers were biggest donors to Obama** … 66965.html

So there’s no hope for any of us…

Well I suppose if Lincoln et al couldn’t beat them what chance has Obama

Lincoln was rumoured to have been assasinated as he printed “green backs” the banks had no control of,consequently endangering their very existence -the govt didn’t have to pay any interest on a “loan” to itself -why would it ? -when I have explained this simple principle to people it is as if you have shown them how an impressive magic trick works!

Like the deception behind the trick,once it is explained it becomes so obvious that people are almost angry with themselves for not working it out themselves and even more angry when they realise that governments need never pay interest on their own money!!!

When people realise the vast sums involved in government debt and the cost to every country by paying interest on it,they soon realise most tax revenue is going directly to banks that never need do so.

If the public at large found this out,especially now in the current wave of hostility and hatred towards the banks,there would be mass civil unrest and riots.

Obviously it is the job of the media and the politicians to ensure they never find out,do you ever think you will see a documentary like the Money Masters on TV!!!

Um, how is this any different to the Fed printing greenbacks? Lets put the same situation in Europe - would anyone feel more comfortable if the national governments were in charge of the euro instead of the ECB?

The point is that removing political control from the day-to-day operation of a currency is supposed to bring greater stability and transparancy to a currency. Whether the Fed has failed in this and needs to be reformed is another question… but I don’t think the solution is to take political control of the currency back. … &aid=11491

Yes obviously there is the argument that,politicians given the printing press would abuse it and who would ultimately control them,but when you think of the situation we have arrived at now,where the BofE and the Fed have stated their intention is to print and print until prices(houses mainly)stop falling what is the difference?

At least the governments would not have to pay the interest or on the issued currency,so in a way the removal of banks from the equation could only be beneficial.It is a whole lot more complicated than this of course,and even the documentary makers acknowledge this when they say even re-instating the link with gold would fail to remove the power of banks as they would simply gain control of the gold market or any other commodity/mechanism introduced to try and eliminate their influence.

Don’t pin all your hopes on Obama!

Lets hope the hawks don’t pull a stunt in the 1st 6 months or so into his term and drag his presidency into some kind of crisis or war. if that doesn’t happen we should view that like a nil all draw for an Irish qualifier, a “result”!

seeing as the topic is fractional reserve banking, this guy has good videos. i recommend viewing his other stuff too. he has a lot of insightful and interesting takes on many subjects, not just economics/banking.

Pardon my ignorance here but under the FRB system, how is it that the principal amount of a loan is deemed “destroyed” when it’s repaid to the bank?


I recently came across this video, it’s 12 years old now but is it still relevant?
[gvideo][/gvideo] … 0256183936

Slightly off topic, at least 25 years old and (unfortunately) still relevant …

All money is loaned into existince, When the loan is repayed the money ceases to exist.

In a world of positive interest rates the money supply has to grow. A Depositors wealth is growing in the bank just as a Borrowers debts are growing. The banks sit in the middle and control that process.
In fact if one looks at the US over the last 60 years, M2 has grown by almost exactly the average corporate lending rate over the same period (6.5%)
Also, in Japan the Money supply was growing at 12% into the 1990s and for the last decade has been closer to 2%, which incidentally corresponds to the fact that they have almost zero interest rates

This is probably what we will see over the next decade, low interest rates, very low growth in the money supply and credit growth which also collapses as the regulators get control of the banks who have been arbitraging the 10% capital ratio rules for the last decade by massaging their balance sheets through credit derivatives and securitisation and also taking the mickey out of the idiotic rating agencies

It would be a momentous change in the current system which will always on average reward those who use leverage to takee advantage of the fact that the almost certain growth in the money supply will always lead to a corresponding increase in asset pricesas that money moves into the system

Funnily enough. If one takes the ratio of the SPX to M2, its now back to its long term average after two decades of outpacing it. US M2 now equals the value of the Us stock market again