Quote Originally Posted by mikecz View Post
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.