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FRACTIONAL RESERVE BANKING IS ANOTHER NAME FOR BANK FRAUD

The use of "fractional reserve banking" is really an institutionalization of an illegal tactic that bankers developed years ago.
In the 1800's, bankers found they could loan out more money than they had on deposit, since most customers did not withdraw funds--their deposits--at the same time.

They could loan out money they did not have in their vaults.

For years, they covered it up by saying " .......they were loaning the depositors' money."
Then they got in trouble and had several financial crises, which were created by the Elite Banksters, to cause all depositors to withdraw funds at once.
This allowed the Banksters to pick off, at bargain prices, such failing banks.
This was called "....over-extending on loans..." or "...easy credit causing bank failure...."
Early in our country's history, these failed bankers were convicted of bank fraud.

Have you heard that term in the last fifty years?

NO !! Now, they call it Fractional Reserve Banking.

Then, the purported reason for creating the Federal "Reserve" System was to give them the ability to borrow from the FED to cover such loans of "money they did not have in their vaults."

This made the fraudulent loaning of money you don't have, a feature of all banking. All they had to do, now, was to try to legitimize this fraud. This was kept quiet and Banksters still don't want to talk about it.

Credit Unions can't do it.

Bring up the subject with any economics professor or Bankster and they say, "oh, that's just fractional reserve banking."

This is part of the Big Lie. We all know what the result is.
The banks say they borrow from the FED--"they create money they do not have",--and then borrow, only, if they get in trouble. This keeps their costs, for paying interest on deposits, down. If they don't have to woo depositors to get deposits, their payments for interest on deposits are reduced. They don't have to compete for your money. It's a collusion to save them money.

If they really had to compete for your savings, they would have to pay more interest on deposits. They can loan money they don't have, by saying that they are borrowing from the FED. Then they pass on the cost of that borrowing to their customers, as fees for everything, even drawing on your own money.

So instead of getting four to five percent on savings like we did in the Thirties, they pay us only 2 & 3%. They save costs by firing tellers and using ATM machines. Then later on, they charge for the use of those "cost saving" ATM's.

We should not talk to people about "banks creating money out of thin air." They don't understand that.

The question is:

Should banks be allowed to loan ANY money they do not have on deposit?

Doing so, is out and out fraud. They charge depositors---pass on their overhead for borrowing money--when they need money to loan to credit card customers. They don't need our deposits, so they don't pay us a fair level of interest.

Then, they trun around and complain about the low level of savings by American workers.

WHAT HYPOCRISY !!!!

Money Talks.

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