It is a fraud. People say it leads to "economic growth"... That's bullshit. If a bank lends out 9 dollars for every real dollar it has... meanwhile getting interest on those constantly redistributed dollars... It is a fucking game. A means of control. Especially when you consider Bank of America had 32x leverage, and Citibank had 47x. It is straight up theivery. It is intentionally made confusing to enslave people, hoping their stupidity prevents them from understanding how the banks work. Why can't we have an honest money system? If a dollar is deposited, every dollar should be kept in that fault. I'll actually go as far to say: fuck banks for profits. Banks should be a service to the community. Loans should have 0% interest, and if they're not payed back, it should be enforced by law. Equivalent assets can be seized. If we do audit the fed, what will take it's place? Will fractional reserve banking still exist? Then... will we have done anything? Also, how will we deal with corporations... they're owned by these same rich fuckers... we're not prepared for a revolution, we're too stupid to put anything decent in it's place.
if we do audit the fed. us Americans will indeed see how Damagingly corrupt our government really is. and we will see where our tax money is really going
The Fed has been so mysterious and secretive for a long time, and the media has sheltered it very well, now its coming in the light, hopefully people will wake up, and realize it is only destryoying the nation through FRB. Common sense and logic tells you we do not need it.
Is ending the FED the cure all... what will happen to all the subsidiary banks that took advantage of FRB? A legit audit would probably reveal massive, worldwide, scandalous shit. We'll be shown the edited version... given a few institutions to demonize and the corruption will continue. Society is fucked... I wish a place existed where I could work to sustain myself, friends and family, for the basic needs... and just enjoy life. I wonder if the amish are taking applications....
Nothing is actually wrong with fractional reserve banking, the problem is that the government has removed all risk associated with the practice. If the Federal government didn't insure bank deposits or act as a lender of last resort we would have sound banks that acted within reason. However, the Federal Reserve creates a moral hazard and distorts our entire financial system... if you don't play the game you can't compete.
I know you and zylark have voiced approval of frb before. They're assuming that they'll loan money out, it will be spent, and the recipient of that money will bank it again, right? So there is eventually a bunch of money that has been reloaned many times over... Meanwhile theyre getting interest 10x on the same dollar. How is that ok? That is fraudulent. It purely benefits the banks in the long run, as loans are constantly recycled, with huge interest going to the banks. Loans are easily accessable, sure, but it strengthens the reckless, corrupt banking elite. Anyway, you know your shit, spell it out for me.
so creating money out of thin air then expecting american citizens to pay off the debt is a good thing asshole ?
Did you read what he wrote? Let me emphasize some things for you to hopefully clarify. I'm not sure if you knew this, but its the Fed Reserve that prints money out of thin air, and in doing so creates all the problems that aaronman mentions, and is clearly opposed to.
I don't really like Fractional Reserve, because there's no way to prevent bank runs, it's basically an illusory system. It allows Governments to finance whatever they want (Wars, for Republicans, and Welfare Statism for Democrats). If we had more sound monetary policy, I'd be for a FR Bank, but as it stands, we need to limit Government as much as possible. That means, we need a system of banking that FORCES the Government to stay within it's own confines. FR Banking has the opposite effect.
Oh, and the reason why so many 'intelligent' people like 'leverage', to answer the OP's question, is that Keynesian and Neo-Keynesian principals have become flavor-of-the-month. The thing that you have to understand about liberals, is that, they claim to be about tolerance. Tolerant, as long as you agree with them. If you disagree with them, they consider you a joke. Look at science, for example, it's a highly liberal institution. There's been dozens of scientists over the years that have proposed drastic, new theories, and the scientific community has laughed them in the face, only for said theories becoming verifiable fact years later. There was a great Italian probability-theorist that stated the scientific community (complex) was a 'despotic and irresponsible Mafia'. You see this repeated over and over again, ranging from politics, economics, and science. The guy who proposed string theory, was ridiculued for years for his crazy ideas. Then over the past 20-30 years, his theory became extremely popular. The economics profession is basically a cartel. The Federal Reserve is the apex of that cartel. Here's a good article on the Federal Reserve and the economics cartel. Priceless: How The Federal Reserve Bought The Economics Profession
If people knowingly deposit their money in a fractional reserve bank that isn't tied to a monopolized money supply and supported by a safety net of inflationary tax dollars then it isn't fraudulent. It wouldn't be run the same way it is now and you would receive high return on your account, like a certificate of deposit, to represent the risk you take by putting your money with the bank. The reserve ratio wouldn't be 1:10 like it is now, banks would be more cautious because people would be discernable... I'm not saying I approve of fractional reserve banking per se, but it can work in a free market. The biggest problem right now is that the government insures it, and it is way too risky to insure. That, and we are forced to accept only their currency as legal tender.
[quote name='UnbyJP'] Did you read what he wrote? Let me emphasize some things for you to hopefully clarify. I'm not sure if you knew this, but its the Fed Reserve that prints money out of thin air, and in doing so creates all the problems that aaronman mentions, and is clearly opposed to.[/QUOTE OH LMFAOOOOOOOO my bad ... and fuck you willisvillis
I've been misusing the word fraudulent. "Fucked up" is more what I was going for. What is your ideal banking system? If the FED is somehow eliminated, I'm assuming you would support a system without inflation, backed by assets, gold... something. Would you still support fractional reserve banking? Realistically, what is going to happen over time? Interest to the banks with fractional reserve banking would create an enormous, corrupt institution. They'd infiltrate politics, change laws that limited their ability to horde money and we'd be dealing with a different, but familiar beast. Why do you support a system that benefits bankers? We need to figure out a system that regulates massive collection of wealth. Powerful corporations and banks do nothing good for society. Wealth in general needs to be capped for the greater good. It seems to be that way. They're all just jumping on the corrupt systems bandwagon because they don't want to compromise they're image in the field.