Re: Austrian & Keynesian Theories Vs. Mathematical Facts
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Thomas “Banks do not lend their depositor’s money” http://en.wikipedia.org/wiki/Fractional-reserve_banking
And if banks do not lend their depositors money (plus the multiplier r factor) , how do you explain bank runs?
Shortage of reserves?
The national debt are the outstanding US Treasury bond issues owed to whoever holds those bonds (mostly foreigners)
Outstanding bank loans are owed to the banks via their counterfeit franchise gifted to them by the government. T bonds have a unique feature in that it is used by the FR as a tool of monetary policy
Your conclusion that we are slaves of this debt based money system is right on, though some of your analysis and definitions . . . . . . . .