Filing Question

[Bentley]

I know you are asking David but I believe he will state just to declare your demand to the bank by written NOTICE. This would become a blanket demand across all types of deposits.

Thanks for your answer, EZ.

I can see 2 immediate benefits for doing this. 1). Physically stamping bills reduces cash-on-hand for reserve purposes and effectively takes the actual bills out of circulation.
2)Raises the curosity quotient of lower-level bank employees to possibly inquire what this is all about.

Bentley

[mikecz]

Thanks for your answer, EZ.

I can see 2 immediate benefits for doing this. 1). Physically stamping bills reduces cash-on-hand for reserve purposes and effectively takes the actual bills out of circulation.
2)Raises the curosity quotient of lower-level bank employees to possibly inquire what this is all about.

Bentley

Ok, here's a question though... Whats the difference between fractional reserve banking, and, how banks used to operate. For instance, before the federal reserve, it was my impression banks were always allowed to lend of money they had on deposit to other banks, create notes, loan to it's depositors etc. There were still runs on banks, because indeed, they didn't have the cash on hand to supply the demand for cash from their account holders. Instead of letting them fail, in 1907 then again in 1913, it was propositioned that the federal reserve could just print the FRNs to supply the need until the bank can get back on it's feet, with interest of course.

I guess, now maybe someone can clarify this, whereas before, say the bank needed at least 100,000 in deposits, all it had to carry was say, for ease of numbers, 10% or 10,000 to cover demand. It could loan out the remaining 90,000. Now, I believe with fractional reserve banking, if the bank had 100,000 in deposits, it doesn't need to keep 20,000 behind, it can lend out up to 10x what it has in deposits correct, so around 1,000,000? The fractional reserve part sort of turns the idea of banking on it's head. This is how the currency becomes elastic correct?, the banks now have the power to "create" money based on deposits, that money doesn't have to exist first... The demand doesn't necessarily effect whether the bank can legally carry a fraction in cash of what it lends out, what the demand does is it removes the power of the bank to "create" money through the money multiplier. I guess the specifics here are in the definition of the term reserve, because to me it can have 2 different meanings.

Interesting term though, fractional reserve, every time the money is expanded, it's really worth a fraction of when it started...

[Freed Gerdes]

Ok, here's a question though... Whats the difference between fractional reserve banking, and, how banks used to operate.

I guess, now maybe someone can clarify this, whereas before, say the bank needed at least 100,000 in deposits, all it had to carry was say, for ease of numbers, 10% or 10,000 to cover demand.

Interesting term though, fractional reserve, every time the money is expanded, it's really worth a fraction of when it started...

Since the formation of the Bank of England in 1694, all major/central banks have committed the crime of fractional reserve lending, ie, loaning out money they don't have. The 'reserve' requirements now for FedRes member banks, is zero for the first $10million loaned, then 3% for the next $100million, then 7% for amounts higher. Each bank branch gets its own reserve account, and there are 8,000+ such banks, so the 'reserve balance' is somewhat less than 3%, or leverage of 30 to 1. This is fraud, and represents the transfer of wealth from those who earn to those who steal. The unholy alliance between criminal bankers and venal politicians is destroying civilization, and rolling back all the progress made in improving the quality of life for the common man. Power corrupts, and the banker/politician nexus is the center of this corruption.

As to stamping Lawful Money on the currency, not one person in a thousand knows what this means, and it has almost no effect on anything past the original transaction conducted by the stamper. The banks ignore the stamp, and the citizenry are so ignorant that it means nothing to them. The banks count the stamped cash as reserves as though it had never been stamped; besides, hardly any cash is used in our present society - 54% of transactions are now done by computer tracking of digital balances, and half the remainder by checks. Only retail businesses deposit cash, and their accounts are not demanded in lawful money.

[mikecz]

Since the formation of the Bank of England in 1694, all major/central banks have committed the crime of fractional reserve lending, ie, loaning out money they don't have. The 'reserve' requirements now for FedRes member banks, is zero for the first $10million loaned, then 3% for the next $100million, then 7% for amounts higher. Each bank branch gets its own reserve account, and there are 8,000+ such banks, so the 'reserve balance' is somewhat less than 3%, or leverage of 30 to 1. This is fraud, and represents the transfer of wealth from those who earn to those who steal. The unholy alliance between criminal bankers and venal politicians is destroying civilization, and rolling back all the progress made in improving the quality of life for the common man. Power corrupts, and the banker/politician nexus is the center of this corruption.

As to stamping Lawful Money on the currency, not one person in a thousand knows what this means, and it has almost no effect on anything past the original transaction conducted by the stamper. The banks ignore the stamp, and the citizenry are so ignorant that it means nothing to them. The banks count the stamped cash as reserves as though it had never been stamped; besides, hardly any cash is used in our present society - 54% of transactions are now done by computer tracking of digital balances, and half the remainder by checks. Only retail businesses deposit cash, and their accounts are not demanded in lawful money.

Ok, this video is interesting...http://www.youtube.com/watch?v=dERCu8nRkJU

He states the FRN is a dual purpose note, and goes into the description of a check? We are state banks, or our person is a bank at least. Do we/can we issue fiat currency? Do we/can we have an account with the federal reserve?

[Bentley]

Since the formation of the Bank of England in 1694, all major/central banks have committed the crime of fractional reserve lending, ie, loaning out money they don't have. The 'reserve' requirements now for FedRes member banks, is zero for the first $10million loaned, then 3% for the next $100million, then 7% for amounts higher. Each bank branch gets its own reserve account, and there are 8,000+ such banks, so the 'reserve balance' is somewhat less than 3%, or leverage of 30 to 1. This is fraud, and represents the transfer of wealth from those who earn to those who steal. The unholy alliance between criminal bankers and venal politicians is destroying civilization, and rolling back all the progress made in improving the quality of life for the common man. Power corrupts, and the banker/politician nexus is the center of this corruption.

As to stamping Lawful Money on the currency, not one person in a thousand knows what this means, and it has almost no effect on anything past the original transaction conducted by the stamper. The banks ignore the stamp, and the citizenry are so ignorant that it means nothing to them. The banks count the stamped cash as reserves as though it had never been stamped; besides, hardly any cash is used in our present society - 54% of transactions are now done by computer tracking of digital balances, and half the remainder by checks. Only retail businesses deposit cash, and their accounts are not demanded in lawful money.

Freed,

You're probably right, but at least the bills will probably get flagged as 'mutulated' and taken out of circulation that way, for whatever that's worth.

Here's an interesting video about the Fed. https://www.youtube.com/watch?v=HfpO-WBz_mw

Bentley