The Fractional Reserve Banking System Scam

It's the scam of the millennium...

It affects everyone in the world.

Here is what Abraham Lincoln said about banks:

"If the American people knew tonight, exactly how the monetary and banking system worked, there would be a revolution before tomorrow morning."

There has been no change since Lincoln's time. Many have tried and wound up broke or dead. What are we talking about?

Fractional reserve banking is the system whereby banks are able to lend (create) more "money" than they have on hand. In essence it's a bank scam.

It is generally accepted that banks are able to lend up to 10 times their reserve. However, researchers believe that in many cases banks lend up to 70 times their reserve requirement!

So, what does this mean?

Banks create money (credit) out of  THIN AIR,  then they CHARGE YOU INTEREST on something which did not exist or in reality belong to them in the first place.

No one will argue that banks charge interest.

But do they create, out of thin air, the money (credit) they lend?

Absolutely. Let’s consult some experts and see what they have to say about banks and fractional reserve banking.

"Banks create credit. It is a mistake to suppose that bank credit is created to any extent by the payment of money into banks. A loan made by a bank is a clear addition to the amount of money in the community."
--- The Encyclopaedia Britannica (14th Edition)

"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight-of-hand that was ever invented. Banking was conceived in iniquity and born in sin. Bankers own the Earth.".....He continued and concluded..... "But if you want to continue to be slaves of the bankers and pay the cost of your own slavery, then let the bankers continue to create money and control credit." 
--- Sir Josiah Stamp. The Bank of England.

"By means of a loan, an advance, an overdraft, or by the cashing of bills, the banks are able to increase the volume of deposits in the community, and because of this process it is not correct to say that a bank loans out deposits which the people make with it. It is clear that it creates the deposit by the issue of the loan. The loan travels back to the bank, or to another bank and assumes the form of a deposit."  
--- Professor A.L.G. Mackey, Professor of Economics, University of Rangoon.

"The essential and distinctive feature of a bank and banker is to create and issue credit payable on demand, and this credit is intended to be put into circulation and serve the purposes of money. A bank therefore, is not an office for the borrowing and lending of money, it is a manufactory of credit."  
--- HAD. Macleod, MA. Barrister-at-law. "The theory and Practice of Banking"

"The banker creates the means of payment out of nothing" 
--- RAG. Hartwell, Assistant Secretary to the British Treasury

Wouldn’t you like to be a bank?

There is an enormous body of evidence to support our claim. We encourage you to research the subject further. Some links have been provided at the bottom of this page.

Fractional reserve banking is a scam. It is fraud of the highest order. Yet, the practice is endorsed and supported by governments (WHY?) and hare-brained economists who claim that it is the engine for economic growth.

Yes. Economic growth does require money (currency).

The real issue is whether or not private banks should issue that currency. And whether or not interest should be charged.

You don’t need to be a rocket scientist to understand the implications. The modern world has been enslaved by a what is known as the "debt money system".

Why is the general public unaware of this?

Most people are just too busy trying to survive to have the time, energy and inclination to question or research the system.

"Modern" banking began in 1694 and the fractional reserve system is actually much older. They simply are not current issues.

But, they have been major issues in the more recent past...

Many American Presidents and famous statesmen have voiced their concern but seemed powerless to implement change:

"whoever controls the volume of money in any country is the absolute master of all industry and commerce." He furthermore warned that: "Banking institutions are more dangerous to our liberties than standing armies." 
--- US President James Garfield

Fractional reserve banking is just one aspect of a purely contrived system we must understand in order to create wealth and prosper.