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Fractional-Reserve Banking is Pure Fraud, Part I
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Fractional-Reserve Banking is Pure Fraud, Part I
Written by Jeff Nielson (CLICK FOR ORIGINAL)
This is a commentary which should never have needed to be written. What is euphemistically called “fractional-reserve banking” is obvious fraud, and obvious crime. By its very definition, it transforms the banking sector of an economy into a leveraged Ponzi-scheme, and as with all Ponzi-schemes, there is no possible “happy ending” here.
Mathematically-based principles are often illustrated best through use of an extreme, numerical example. We have no need to construct any hypothetical extremes, however, when we already have real-life insanity, in our current monetary/regulatory framework.
Here it is important to note that in order to conceal the fraud, crime, and insanity of our present system to the greatest degree possible, the bankers hide their dirty deeds within their own convoluted jargon. Thus presenting “fractional-reserve banking” to readers requires some brief investment of time in definition of terms, starting with this term, itself.
Fractional-reserve banking evolved literally based upon the temptation of all bankers to perpetrate fraud. Empirically it has always been observed, down through the centuries, that under normal circumstances, only a tiny percentage of depositors will come to claim their cash/wealth at any one time. Thus the temptation is for bankers to “lend” more funds than they actually possess, i.e. they are “lending” what does not even exist: “fractional-reserve banking” – the ultimate euphemism of banking and fraud.
It goes without saying that anyone or any entity which endeavours to “lend” something which does not exist is perpetrating fraud. But before examining this inherent fraud more closely, it is important to back-up, and look at the Law. Note that even when banks “lend” the money which they actually do hold on deposit (as trustees for the depositors) that this is already wholly/totally illegal. It is the crime known as“conversion”.
Criminal conversion:
A person who knowingly or intentionally exerts unauthorized control over property of another person commits criminal conversion.
When your bank lends-out money you deposited, which it claims to be “holding” for you as trustee, does it seek your prior authorization before lending-out your property and thus putting it at risk? Of course not. The banks get around the naked criminality of their lending operations through general authorization. In the small-print of any/all bank deposit contracts is a clause whereby the depositor “authorizes” the bank to lend-out their property to Third Parties.
We therefore start with the basic fact, that “banking” as we know it (bankers taking deposits, and then lending those deposits) is literally institutionalized crime. But “fractional-reserve banking” goes far beyond this original level of criminality.
Not only are banks allowed to lend what they don’t own, they are allowed to lend what they don’t even possess – and by many multiples. “Banking” is institutionalized crime. “Fractional-reserve banking” piles-on a systemic and enormous element of fraud: “lending” what does not even exist. But this isn’t even the most-shocking aspect of fractional-reserve fraud.
Here readers need to understand the consequence of allowing banks to lend what they do not even possess. A simple, hypothetical example will illustrate the principal-of-insanity which is the basis of our current monetary system .
Suppose JPMorgan holds $1 billion in total deposits. In the original form of our fractional-reserve fraud, the fraud ratio was set at 10:1. This meant that for every dollar which a bank actually held, it was allowed to “lend” $10. Now the simple arithmetic.
JPMorgan is holding $1 billion of other peoples’ property, but it is allowed to “lend” a total of $10 billion. Where does the other $9 billion come from? It is literally conjured out of thin air , via fractional-reserve fraud. Thus, for many readers, this represents their first, actual glimpse of the full fraud, and full insanity of our current monetary system.
In the original form of our “fractional-reserve” monetary system, for every $1 which our central banks officially printed, the banking system created an additional $9 out of thin air, via fractional-reserve fraud. Simply put, 90% of all the actual “money” in our monetary system, and our economies, was conjured out of thin air , by private banks, via fractional-reserve fraud.
This is fractional-reserve banking, presented as the naked fraud that it is: bankers “lending” not only more than what they possess, but lending out “money” which grossly exceeds the amount of capital in existence. Conjuring oceans of paper out of thin air. It is inherently criminal. It is inherently fraudulent.
It automatically transforms our monetary system into an institutionalized Ponzi-scheme. By definition, all “fractional-reserve banking systems” must automatically collapse – in a sea of fraud – if all depositors simply claim a tiny portion of their deposits, at any one time.
This is also known euphemistically as a “run on a bank”. Here, however, the euphemism is intended to insinuate that the mere act of depositors taking possession of their own property is somehow a “crime” against that financial system. Indeed, directly implying as much, our own governments will institute “bank holidays”. This is yet another banking euphemism where depositors are legally prohibited from taking possession of their own property. The most recent example of such financial oppression was in Greece .
How can governments justify such financial oppression? While it is never explicitly acknowledged, the justification is entirely singular: to prop-up a Ponzi-scheme. It thus becomes necessary for governments to abandon the Rule of Law, and legally prevent/prohibit their own citizens from taking possession of their own property – as the only means of preventing the complete implosion of that system. The epitome of a Ponzi-scheme.
Observe how totally perverted and totally criminalized is the current system of fractional-reserve fraud. The banks are legally allowed to commit the crime of conversion: “lending” what they do not own. The banksare legally allowed to commit fraud: “lending” what does not even exist. But if/when Depositors seek to take possession of their own property, they are treated like criminals.
The bankers are granted absolute legal protection to perpetrate their fraud/crime, at the direct expense of the law-abiding citizens of that society.
However, this marks only the starting-point for our present system of monetary/financial fraud . In its original form, fractional-reserve fraud was already entirely criminalized, and already entirely fraudulent. How/why would our governments have ever turned our entire financial system into such institutionalized fraud?
They were convinced to do so on the basis of the promise/guarantee of the bankers. The bankers promised that they would exercise the enormous, legal privilege which they had been granted by acting in a responsible manner, and doing nothing to jeopardize this institutionalized Ponzi-scheme.
In reality, the banks have done the precisely the opposite. First the Big Bank crime syndicate had their servants in our puppet-governments tear-up the legal distinction between “banking” (institutionalized fraud) and “investing” ( institutionalized gambling ). Overnight, our banks were transformed into bank-casinos.
Not only were these “banks” lending-out funds which grossly exceeded their current assets, they were gambling with these funds, and at even greater ratios of leveraged fraud. The result of combining extreme fraud with extreme financial recklessness was the Crash of ’08. The Big Banks literally “blew up” the Western financial system with their extreme, reckless gambling – gambling which began with the deposits which they claimed to be holding as trustees.
Instead of our governments punishing these Big Banks for their extreme, reckless fraud, they rewarded them. Using our money, these Traitor Governments indemnified the Big Banks for every cent of their reckless, fraudulent gambling. Then they did something much, much worse.
Our Traitor Governments bowed to the will of their banker Overlords, and dubbed these institutions of fraud/crime as being “too big to fail” . Translation? Instead of preventing these institutions of financial crime from continuing their reckless gambling, they promised to pay-off all of the banksters’ gambling debts, forever.
What happens when you tell any Compulsive Gambler that you will make-good on all of their gambling losses? The Gambler runs wild. Observe what the banking crime syndicate calls “the derivatives market” . It is their own private, rigged casino, where the total amount of ultra-leveraged betting is twenty times as large as the entire global economy .
Thus to go with the institutionalized crime and the institutionalized fraud of “fractional-reserve banking”, our Traitor Governments then added institutionalized extortion : allowing the Big Bank crime syndicate to blackmail our governments, in perpetuity, with the threat “bail-out all of our bad debts, or else…”
Following the Crash of ’08, and the literal sell-out by our own governments to the Big Bank crime syndicate, all of these Traitor Governments made the same promise to us: “never again.” Supposedly, they would never again allow the Big Banks to blow-up our financial system, and to keep this promise, they all pledged “tough, new laws” – to restrain the reckless gambling of the Big Bank crime syndicate.
What these Traitor Governments actually did was the exact opposite of everything they promised. Instead of reducing and restraining the insane, reckless gambling of the bankers which led to the Crash of ’08, they institutionalized that, as well.
This will be the subject of Part II: taking a system which was already wholly criminal, ridiculously fraudulent, and completely unstable, and making it much, much worse.
Please email with any questions about this article or precious metals HERE
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A really thorough and well-researched series of articles on the topic of fractional reserve banking can be found at Acting Man. This is a very convenient reference, as it discusses both theory and history of the practice in great detail, including the most important legal and economic aspects. It doesn't break any new ground, but as summaries on the topic go, it seems to me to be quite useful:
The Problem of Fractional Reserve Banking
Part 1: http://www.acting-man.com/?p=3723
Part 2: http://www.acting-man.com/?p=3867
Part 3: http://www.acting-man.com/?p=3870
(originally a part 4 was planned as well, but it was eventually decided that it would be better to discuss these related topics under different headings)
Show of hands. Have you ever done trade in barter/gold or silver. up votes if it worked well down vote if it was not good.
messymerry, back in the days when fractional reserve banking was still paper frauds, backed by gunpowder weapons, it was originally correct to refer to "the poor sap tax mules that pay for the entire Ponzi scheme." However, after the overall fractional reserve banking system became electronic frauds, backed by the threat of force from atomic bombs, the magnitude of those frauds left all of the flesh and blood "poor sap tax mules" behind in the dust ...
As the article above points out, as the banking systems became automated electronic frauds, at the same time "our banks were transformed into bank-casinos." More and more "money" was created out of nothing to gamble with, which has surpassed the ratio of 1 unit of physical reality, to 100 units of virtual assets. Today, all of the "money" used by flesh and blood people to buy food and fuel, etc., has become relatively trivial compared to the overall amounts of the same "money" made out of nothing to use to speculate with.
Although the vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS required "poor sap tax mules" at the beginning to get those systems going, by governments enforcing frauds by privately controlled banks, by demanding payment of taxes in the "money" deemed to be legal tender that was issued by those privately controlled banks, since then, the size of the "Ponzi Scheme" has been amplified to astronomical sizes.
It is practically impossible for most people to comprehend the existing systems of globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. Indeed, it is only possible to have some very abstract, intellectual understanding of the literally quadrillions of units of various sorts of nominal "money" made out of nothing, to primarily use to speculatively gamble with.
Basically, the physical collateral which was supposed to originally be related to the symbolic money has surpassed ratios of 1 to 100, and is automatically headed towards 1 to 1,000. Since civilization is operating through fundamentally fraudulent financial accounting systems, it is as if the existing systems of globalized electronic frauds were able to create, at first the illusion of their being 10 additional planet Earths, then 100, and we are headed towards living inside Wonderland Matrix Bizarro Worlds, wherein people are attempting to pretend that there are 1,000 times as much virtual worlds based on electronic frauds, as there actually are physical realities upholding that.
The days when there was still merely a 10 to 1 ratio through fractional reserve banking, supported by the work of "poor sap tax mules," are gone. Rather, we have already gone past the ratio of 100 to 1, and are inherently accelerating towards 1,000 to 1, due to the magnitudes of the electronic frauds surpassing the physical collateral by that degree.
The basic thrust of these events is that debt slavery systems have generated numbers which have become debt insanities, and those are likely going to have their "end-game" by provoking death insanities, such as by the banksters starting World War III.
Each new event in geopolitics is pushing us towards the resolutions of the problems that we have gone so, so far into the conditions of debt insanities by provoking death insanities. Personally, I can not imagine any other outcome, since the majority of people have been conditioned to feel like they do not want to understand an article like the one above. Indeed, the vast majority of people would very probably never read an article like the one above!
What actually exists are combined money/murder systems, where the debt controls are backed by the death controls. Once upon a time that was based upon governments forcing ""poor sap tax mules" to pay their taxes using the "money" supply deemed legal tender, that was being created out of nothing, as fraudulent debts, by privately controlled banks, which banks were able to control governments, through their political puppets, through the history of the funding of politics, as well as all other methods of organized crime applied through the political processes, in order to make and maintain those vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS.
However, at those systems based upon ENFORCING FRAUDS became atomic bombs, backing up electronic frauds, the magnitudes of those were magnified many times, until the point has been reached where the lives of flesh and blood human beings have become relatively negligible within the virtual world of financial frauds, whose scale is too mind boggling for anyone to fully imagine anymore.
There is NO doubt that the article above was CORRECT that "Fractional Reserve Banking is Pure Fraud." (These days, anyone who wanted to can watch enough of the readily available free documentaries, such as these Excellent Videos on Money Systems, in order to learn the history of how we have ended up with the established systems becoming vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS.) However, at the same time, most people continue to want to try to understand that situation as if it were the same as the old days of paper frauds, backed by gunpowder weapons, rather than electronic frauds, backed by atomic bombs.
As I write this reply, the current news is that Syrian Rebels Destroy Russian Helicopter With US-Supplied Anti-Tank Missile, which those "rebels" may well have had due to some events that were similar to the background presented in this article:
http://www.zerohedge.com/news/2015-11-23/new-video-grateful-al-qaeda-tha...
In New Video, A Grateful Al-Qaeda Thanks US For Supplying Anti-Tank MissilesThat article made the observation, which applies to the combined money/murder systems generally, and therefore, to the article above, that IT IS: "astonishing that the Western public is largely clueless."
The "Western public" has become the victims of the most scientific psychological techniques that money could buy to for generation after generation. The GREAT PARADOX of human intelligence is that the ruling classes have used theirs to make those they rule over stupider. That has been getting worse for thousands of years. Recent political events tend to make that become more blatantly obvious to those few who continue to have enough education, intelligence and imagination to somewhat perceive the degree to which civilization is being controlled by the abilities of the ruling classes to ENFORCE FRAUDS against those they rule over, where the social success of those FRAUDS (despite being FALSE) requires that the majority of people become sufficiently stupid that they do not understand THAT, because they have been successfully conditioned for generation after generation to not want to understand THAT.
In my view, the main reason for most reasonably being pessimistic about the future is due to the degree to which the vast majority of people have been successfully conditioned to live inside of Wonderland Matrix Bizarro Worlds, where everything is absurdly backwards as possible, because everything is based upon the social successfulness of being able to continue to ENFORCE FRAUDS, despite those being FALSE.
The notions of any constitutional democracy, or a democratic republic operating through the rule of law, are now pretty well 99% DEAD, due to the degree to which "the Western public is largely clueless," and feel like they want to stay that way! The more one learns about that, the worse it gets, due to the discovery of the degree to which there is almost nothing but the core groups of organized crime, operated by the ruling classes, through bankster controlled governments, being surrounded by almost nothing which is publicly significant than controlled opposition. The excessively successfully controlling civilization by applying the principles and methods of organized crime has resulted in civilization becoming runaway criminal insanities. One of the most important ways that manifested is the degree to which IT IS "so astonishing that the Western public is largely clueless!" Hence, the people who are ruled over have nowhere to turn, other than to controlled opposition groups, who continue to operate within the same frame of reference originally developed by the ruling classes, to enable them to become better professional hypocrites.
The people who are ruled over in the "Western public" are especially "clueless" regarding the degree to which the apparent public opposition is controlled by the people who rule over them, so that there is nowhere to turn where one will not be told the same basic bullshit by similar kinds of professional hypocrites, throughout BOTH the core organized crime groups, AND the controlled opposition groups. Indeed, the vast majority of content published on Zero Hedge fits within the ironic observation made by Cognitive Dissonance that: "The absolute best controlled opposition is one that doesn't know they are controlled."
The degree to which "the Western public is largely clueless" is WAY WORSE than their superficial ignorance regarding the deeper realities behind current political events. In general, "the Western public" has been so totally brainwashed to believe in the biggest bullies' bullshit world view, based upon the dualities of false fundamental dichotomies and the related impossible ideals, that it is NOT POSSIBLE for them to become any less "clueless" regarding that.
That is especially the case because of the degree to which all of the publicly significant controlled opposition groups indulge in the same basic dualities, expressed as false fundamental dichotomies and the related impossible ideals. That is why almost all of the content published on Zero Hedge follows the pattern of roughly 90% being relatively good, albeit superficial, analysis of the problems, followed by roughly 10% bogus "solutions" based upon the same old-fashioned impossible ideals, which must necessarily continue to backfire badly, and actually cause the opposite to happen.
Hence, the GREAT PARADOXES that human intelligence has primarily been applied by the ruling classes through backing up deceits with destruction, and enforcing frauds, in order that those they ruled over would become ignorant and afraid, to the degree to which they were afraid to stop becoming so ignorant. The vast majority of "the Western public" were deliberately reduced to Zombie Sheeple, who are so "clueless" that they do not have a clue how clueless they are!
There are no good grounds upon which to base any reasonable hopes that will ever get any better within the foreseeable future, due to the degree that the ruling classes effectively control all of their publicly significant opposition, particularly by controlling the ways that people think, and the language through which they communicate. Overall, we are collectively marching to the orders of the ruling classes, who have become increasingly psychotic psychopaths. However, since there is almost no genuine opposition, there are no good grounds to doubt that will automatically continue to get worse, faster ... "The clueless Western public" have no publicly significant opposition, that does not remain within the same basic bullshit frame of reference. As demonstrated over and over again on Zero Hedge, relatively good, albeit superficial, analysis of the problems with the currently existing combined money/murder systems are never followed by anything but various sorts of old-fashioned bogus "solutions" based upon impossible ideals.
In my view, "the clueless Western public" INCLUDES almost everyone who seems superficially less "clueless," but nevertheless, continues to think using the dualities of false fundamental dichotomies, and therefore, continues to promote bogus "solutions" based upon impossible ideals. From that perspective, almost everyone who publishes material on Zero Hedge is profoundly "clueless" too, in the sense that: "The absolute best controlled opposition is one that doesn't know they are controlled."
From any practical political point of view, Western Civilization is already terminally sick and insane. There are no reasonable ways to save any democratic republic operating through the rule of law. Rather, it is politically impossible to stop the vicious spirals of POLITICAL FUNDING ENFORCING FRAUDS, automatically getting worse faster, and that is most especially true due to the degree to which there is almost NO genuine opposition, but rather, ONLY the on-going situation that: "The absolute best controlled opposition is one that doesn't know they are controlled."
As long as people continue to think about political problems using the dualities of false fundamental dichotomies and the related impossible ideals, then they can NOT resolve those problems any better. The anomalies are accumulating that demonstrate to any well-informed person that governments are the biggest forms of organized crime, controlled by the best organized gangs of criminals, which currently manifest as the bankster controlled governments, which have engaged in series of false flag terrorist events, deliberately designed to drive terrorism to become a more and more self-fulfilling prophesy, because governments are necessarily the biggest terrorists, controlled by the best organized terrorists.
"The Western public" IS CONTROLLED BY THINKING USING THE DUALITIES OF FALSE FUNDAMENTAL DICHOTOMIES, AND IMPOSSIBLE IDEALS, THAT THE RULING CLASSES ORIGINALLY DEVELOPED AS THE BIGGEST BULLIES' BULLSHIT, WHICH ENABLED THEM TO BECOME BETTER PROFESSIONAL HYPOCRITES.
The degree to which the people who are ruled over ARE "clueless" includes that almost all of the publicly significant opposition is controlled by thinking the same basic ways, which results in them actually assisting the bankster dominated governments to operate, rather than more effectively resisting them. Therefore, overall, Western Civilization is drowning under its own bullshit, to the degree to which there are no good grounds to expect that to ever get any better, but rather, more reasonable to expect that we will collectively be going down for the third, and perhaps final, time in World War Three.
MONEY IS MEASUREMENT BACKED BY MURDER.
Both the banksters, as well as their controlled opposition groups, do NOT want to admit and address THAT. While an article like the one above was quite correct about the nature of THAT problem, such articles tend to grossly underestimate how bad THAT really has become, and similarly so for anyone who still thinks that the currently existing systems of runaway electronic frauds, backed by atomic bombs, still depend upon the "taxpayers," which were originally necessary, but which have since become too trivial to matter much anymore.
The debt controls always depended upon being backed up by the death controls. For a while, that initially was that the police forced taxpayers to pay taxes, and could kill anyone who attempted to effectively resist participating in those systems whereby governments ENFORCED FRAUDS by privately controlled banks. However, those systems automatically got worse, faster, at about an exponential rate. Therefore, the old debt slavery systems based upon "the poor sap tax mules" have become runaway debt insanities, where those debts are digital electronics, whose magnitudes are as beyond ordinary human comprehension as the destructive power of weapons of mass destruction is beyond ordinary human understanding.
The ruling classes, who have become more and more psychotic psychopaths, are following through on their own morbid psychological and political habits, in ways which are driving the runaway debt insanities towards provoking death insanities. Indeed, anyone who seriously considers the degree to which the virtual world of electronic frauds, backed by atomic bombs, has become so many orders of magnitude greater than all of the flesh and blood people combined, will find it practically impossible, and certainly politically impossible, to imagine how to resolve the magnitudes of frauds, when those become ratios which are greater than 100 to 1, and which are automatically headed towards 1,000 to 1.
The essential problems are due to prodigious progress in physical science, based upon series of profound paradigm shifts, that have enabled the previous systems of paper frauds, backed by gunpowder weapons, to become electronic frauds, backed by atomic weapons. Meanwhile, political science has not progressed at all, but rather, politics continues to be dominated by the best available professional hypocrites, performing the same old sort of "silly little love songs" promoting impossible ideals, based upon perceiving the world through old-fashioned false fundamental dichotomies.
The "real" world that "exists" is now controlled by electronic financial frauds, which are many orders of magnitude bigger than the physical Earth, and which enable civilization to behave as if there are 100 extra Earths, due to there being so much electronic fraud. I would not count on the majority of the public ever reading and sufficiently understanding an article like the one above, because in order to do so they would have to come to terms with the ways that MONEY IS MEASUREMENT BACKED BY MURDER.
Instead of enough people understanding THAT enough, we are most probably headed towards the runaway debt insanities provoking death insanities. Indeed, probably the only realistic ways that those real problems could be resolved is through death insanities, due to the magnitudes of the debt insanities becoming so, so BIG! After civilization becomes controlled by electronic frauds backed by atomic bombs, the only realistic resolutions appear to be to go through those debt insanities provoking death insanities, perhaps with some irrational hopes that through those events there will be some survivors that will learn to operate better combined money/murder systems in the future ???
until the point has been reached where the lives of flesh and blood human beings have become relatively negligible within the virtual world of financial frauds…
Sadly, we've reached that point, Marijuana, living it now day by day, hour by hour…but the bankers, IMHO, fortunately, are too late.
The primary evidence that Western Civilization will not lose its battle with the bankers, IMO, is that the economic system that the internationalists have selected is nearing breakdown. Europe’s socialism, adopted by America, will not support a world government.
As such, economic conditions will make targets of the bankers, and, second, justice will demand its day.
The Rockefeller goal of pivoting nations into central control first required conquest of the West’s middle classes. But banker economics will fail when the middle classes demand progress, or else, they revolt.
Put another way, the bankers didn’t conquer the middle classes prior to the collapsing of their economic system. They are destroying value now and sensible men won’t have it. The bankers had to have people on their knees before the collapse, and they failed in their goal. They didn’t count on Islam, they didn’t count on Russia, and they risked it all with China because the Chinese would never make a banker partner.
In short, Rockefeller’s and the Rothschilds’ economic system detonated prematurely; they didn’t get the people and the nations knocked down in time. And now they will be hoisted by their own petard.
Powerful commentary, RM. I hope you repost it on Nielson Part II early enough for it to see the light of day.
I hope you are right JR!
Totally disagree with the author. Don't be fooled by this bullshit. The primary problem is govenrment monopoly over money and cartel banking. I have written about fractional reserve banking here. By perpetuating this bullshit about fractional reserve and "bankers" the fools that write this crap are assisting government in fucking all of us.
“kill them… arrest them… all of them”
So say quite a few who comment on this site.
Of course, it’s probably the worst thing to do – if their cause is the rights of man, that is.
On the other hand, if their cause is the imposition of tyranny, “kill them” is probably the best “correction” possible; for, it gives Judeo-Bolsheviks (JB’s) an acceptable excuse to impose martial law… and smear the cause of man. What else should we expect from JB’s? They have been destroying civilizations for at least 5,000 years. For them, using slow-witted dupes is another specialty they have developed to a high art form.
In other words, he who proposes executing government-protected assassins and thieves is doing the work of Judeo-Bolsheviks.
It doesn’t matter whether he is an unwitting dupe or a conscious counter-intelligence operative – the result is always the same: an excuse for more tyranny; some call it “martial law”.
It happens repeatedly: JB’s 1) lead slow-witted and angry peasants onto streets, block traffic (that is, violate rights of non-protesters); 2) incite peasants to more violence; 3) when police begin shooting, JB’s disappear; 4) peasants take bullets (Did I say, ‘slow-witted’?); and 5) martial law, or soldiers, follow.
No, if our cause is liberty, we don’t want to execute them – and we don’t want to arrest them.
There are at least five reasons.
One: we don’t want to become like them: execution without due process.
Two: it would put them out of their misery too quickly; it is more pleasing to prolong it as long as possible.
Three: instead of “slitting their throats”, we should recover the booty they took and return it to those from whom it was wrongly taken: for example, taxes wrongly imposed or collected (one); the neglect and abuse of children compelled by such taxes (two); among many others. There are tens of trillions floating around the world (three) in various forms – bank accounts, stocks, bonds, real property – available for recovery.
Four: it would be a pleasure to watch JB’s and their useful idiots scatter as cornered rats as we make them accountable for what they did.
Five: it would lay the foundation for an unprecedented experiment in liberty; for, none other attempted to make tyrants accountable – only to escape them.
We will be the first in this regard; for, we have resources available to us that no one else in prior ages had: a) a heavily armed population (altho greatly hobbled by medication, see this for cure,) b) instant communication, and c) lessons of prior ages to guide us.
Unfortunately, while most Americans are aware of resources a) and b), hardly any are aware of the last… or how to cure a medicated lethargy.
And without this last resource, all will be for naught, actually worse… much worse; for, how can you play the game if you don’t know the rules (law and procedures of redress)?
It all comes to one question: “Will we strive for redress… or leave the task for our children?”
“’fractional-reserve banking’ is obvious fraud, and obvious crime.”
You really should perform due diligence on this topic. Your analysis wouldn’t even pass the grammar test. What, for example, is the definition of fraud? Basically, it is, “the taking of property thru deception”.
Even more fundamental would be an examination of the processes of market-based fractional reserve practices.
For example, suppose a reserve position of 1 kilogram of gold and deposits of an equal amount. The bank then lends 100 grams using collateral (real estate, equipment or inventory) with a market value of 200 grams.
Now the one kilogram of deposits is secured by 900 grams of gold and 200 grams of other property.
Who in their right mind would complain about this?
But, I’ll be fair; you are discussing fractional-reserve banking which possesses a license to steal. So, when banks tell you they are licensed by thieves, and they steal your money, where’s the deception?
Now you have to distinguish between fractional-reserve banking subject to due process of law and the same licensed by criminal and useless classes, collectively known as government.
So, what’s the solution? This should be easy, for anyone who has done their due diligence.
What we need is someone to offer an alternative to legally protected thieves.
The problems and the solution have become crystal clear and G. Edward Griffin stated it simply. His book, The Creature from Jekyll Island, explains it in detail.
“The Federal Reserve System should be abolished for the following reasons:
· It is incapable of accomplishing its stated objectives.
· It is a cartel operating against the public interest.
· It is the supreme instrument of usury.
· It generates our most unfair tax.
· It encourages war.
· It destabilizes the economy.
· It is an instrument of Totalitarianism.
“This is a story about limitless money and hidden global power. The good news is that it is as fascinating as any work of fiction could be…
“The bad news is that every detail of what follows is true.”
--G. Edward Griffin
I like an energy backed coin. The coin must have a real value that can be measured. Preferably a fixed value that tranfers well into any other valuable thing or service. I call it free trade. Because if we all were free thats how it would be done.
There is no money - literally. There is only debt and credit. Hence, one cannot "pay off" a debt. One can only discharge debts.
Thanks once again Jeff. Just when I get lulled back into semi-stupor via MSM distractions you simply focus me back to some very basic truth. I reread your articles on ONE Bank again over last few days. To wake my mind up once more.
I disagree with the premise. You can say what you want about fractional reserve banking, but its existence has helped millions of people and businesses, who otherwise would not get loans or lines of credit for anything. Sure, there are control issues and abuse issues, but those are more often the results of political interference and meddling through mandates and programs rather than the banks wanton disregard for their bottom lines.
Why would anyone need a "loan" in the first place? Undercover Brother? Undercover for whom?
Jeff, I hope you cover central banking and legal tender in this series. Succinctly written and well done.
Fractionally Reserved Banking=
Large Fractions of your money is Reserved for Banksters.
Every fiat currency system in history has ended in collapse. This one will be no different, except we will be in the middle of it.
PMs = shiny metal coffin for deactivated money
Trade that stack. Its the only way to set its true value. If you dont tptb will set its value by fiat magic.
Fictional reserve banking.
Fiat = slavery
If one thinks in terms of a barter system its very clear.
Fiat is what slaves are paid in. Simply because it has a real value of 0. All of its value comes from force. So we have been slaves from 1913 on. Trading our efforts for a coin others did not earn in any way.
The fiat slavery wasn't fully instituted until 1965...
That is when everything began to fall apart. But that's old history now. We have grown ourselves a gargantuan endlessly insatiable monster government and very very soon, we will have to pay the price for our laziness and greed.
Anybody playing ball with the mammonites is tainted. Mammonites = Bwankers/Banksters, Investment houses, Insurance companies, Governments, Realturds, and anybody else that prostrates themselves before Mammon.
Get out while you still can.
;-D
The frustration of seeing the Ponzi grow, while those who seek to preserve their capital via PM's continue to get punished is obvious in Sprott's "tirade". Things must be going badly for him and his company.
I know how he feels. I have been buying PMs for the past 4 years, not recognizing the secular bear market, but also missing the dips with in the bear market, and buying up the upswings, most recently a week before this latest dip.
Having said that, I am not selling. I'll just leave it for my 11 yr daughter with the admonishment that PM are to held onto as long as possible as a last chance, doomsday, when all else fails, last resort.
It’s devastating and tragic enough that fractional-reserve banking has been employed solely to make the elite bankers rich; but it’s even more tragic to describe its exposure as a “tirade.”
According to figures provided in 2009 by Prudent Bear (2009), the Fed was keeping about 1/4 of 1% in deposits as "fractional" reserve money in its system, i.e. 25 cents in receipts for every $100 of debt creation. Mogambo Guru calculated that at the time to be .00026% in reserves —just enough, I suppose, for the Fed central bankers to say America is on a fractional-reserve system, albeit .99974% thin air. I doubt it even keeps 25 cents every $100 now. Saving is “hoarding” is it not and what central banker needs deposits anymore? After all, counterfeiting out of thin air is now the only way to go. When the Fed money trust can print without any oversight from a banker-bought Congress, debasing the dollar for the common man as it transfers the nation's wealth to itself, anyway you look at it, it's fraud.
Nielson, in language that overcomes the Fed's intentional curtain of concealing its banker sleight of hand with abstract verbal nonsense, has exposed that fraud.
Without a clear understanding by the public of paper money and tyranny - that only sound money can bring prosperity and freedom - the narcotic of blowing money out of thin air is now too strong for the Fed chairs and their dependent investment banker friends to kick the habit—and the dollar is rapidly on its way to worthless, i.e., just a lot of unbacked paper notes issued by a bunch of guys in a marble building growing filthy rich on the backs of the American people.
So, since Sprott is under no obligation to deliver physical metal, what happens if the paper fiat money system falls apart? What do the customers get if they want to "cash out"? Do they get stiffed and Sprott keeps the metal? Just what is the plan?
Good question. I've got PSLV and PHYS as part of my 401k, but I do angst over how that will all be settled when the the house of cards topples. It's sold as an allocated fund as opposed to re-hypothecated GLD and other bogus paper. But at the end of the day, will Sprott turn out to be be another sucker's investment?
Maybe Sprott should open their books and let us have a look...
;-D
Prospectus and financials are all publically available for those who can read.
Convert currency to silver.
Get your money out of the banks and give yourself a fighting chance. Your great grandparents showed wisdom stuffing cash in the matress.
That fucking Yellen should be hanged - along with Billary, Barry
@Jack Daniels Esq
"That fucking Yellen should be hanged - along with Billary, Barry"
Politicians are rented mules. They are subservient to their masters who control the capital flows.
The Conga line in all it's radiant glory:
The Bwankers control the Corporations
The Corporations control the Government
The Government controls the Sheeple
The Sheeple (read FSA) controls the People*
The People support the whole effing fraud!!!
Question for ZH: Where is the Media in all this???
Eat lots of turkey on Thursday y'all. The next Thanksgiving may be a bit thin...
;-D
* The Sheeple are the ones that vote yes on every hair brained .gov scheme to extract more money from the poor sap tax mules that pay for the entire Ponzi scheme.
The fully fraudulent
financial Conga line:
Dancing to destruction, while amusing ourselves to death!
Many people are coming up to speed my friend.