Zico
2nd June 2009, 22:09
I was recomended to watch this by a friend while we were discussing the banking system namely- why payments take days to clear despite everything is done electronicaly.
Maybe its common knowledge among the more scholarly among you but I didnt quite expect these revelations..
It seems that the American banking system is based on a pyramid type scheme called 'fractional reserve', ie for every 10 billion borrowed from the Federal reserve for bonds only 10% has to be stored as deposits, leaving 9 billion to be used as further capital.. So in effect 9 times as much money can be created from this debt from what is essentially thin air. Perpetual wealth transfer and perpetual debt.
To discover more watch- http://video.google.com/videoplay?docid=7065205277695921912&ei=noslSuzTPIz4-Aa53uSfBg&q=zeitgeist
I think Im in need of educating on the subject, Is this really how it works?
Im more worried about our future than ever before.
Discuss..
Maybe its common knowledge among the more scholarly among you but I didnt quite expect these revelations..
It seems that the American banking system is based on a pyramid type scheme called 'fractional reserve', ie for every 10 billion borrowed from the Federal reserve for bonds only 10% has to be stored as deposits, leaving 9 billion to be used as further capital.. So in effect 9 times as much money can be created from this debt from what is essentially thin air. Perpetual wealth transfer and perpetual debt.
To discover more watch- http://video.google.com/videoplay?docid=7065205277695921912&ei=noslSuzTPIz4-Aa53uSfBg&q=zeitgeist
I think Im in need of educating on the subject, Is this really how it works?
Im more worried about our future than ever before.
Discuss..