Let's Keep Big Banks from Ruining America Forever

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investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
Let's Keep Big Banks from Ruining America Forever

Every Big Bank in the US creates money out of thin air through a system called the fractional reserve system.
In the US, the reserve ratio requirement (RRR) is NOT 10% as most
Americans believe. It is in fact, effectively zero percent, a fact that
all executives at big banks do not want you to know. This means that
Big Banks can effectively create $100 million of loans for every $1
million of deposits they receive if they so desired. If you and I tried
to execute the same business plan with our everyday businesses, you and
I would be thrown in jail for fraud within two weeks. In essence, due
to the fractional reserve banking system, every single dollar you
deposit in a bank is effectively being devalued from the moment you
deposit it in a bank. The money you deposit in a bank will never again
have the same purchasing power it did from the moment it leaves your
hands considering that it takes you a minimum of several months to many
years to withdraw and spend all of your savings. Of course, other
factors such as the monetary decisions of other major Central Banks
affect the dollar’s worth, but in essence, the above statement, even
its simplicity, still holds true. Since I extensively explained how devaluation of the US dollar happens in this article, I won’t repeat myself here.

http://seekingalpha.com/article/130931-let-s-keep-big-banks-from-ruining-america-forever 

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