On Fractional Reserve Banking

When the Federal Reserve and subsequent commercial banks create artificial money, in the form of a loan (to government or private interests), they only create the principle – not the interest needed to repay the entire loan. The interest required to discharge that debt MUST come from outside the transaction that created the debt in the first place. And that’s how the ever-expanding, wealth-siphoning Ponzi scheme gets started, and also why it is a one-way street to oblivion and bankruptcy with no possible good end (to all but the very wealthiest and most insulated on the banking end). The interest to service all prior debt ALWAYS comes from principle that is created in the form of new debts – the interest of which must be repaid from yet more “principle-only-creating” debts – the aggregate of which MUST expand, and can NEVER be fully repaid, the end game of which is a forced default and MASSIVE IMPLOSION on the part of the entire Ponzi scheme, once it is physically incapable of further expansion, for whatever reason.


2 responses to “On Fractional Reserve Banking

  1. Pingback: These FCCB debt holders repaid in anticipation « A blog of blogs

  2. Pingback: BMG: Buy Bullion| The Ponzi Debt Bubble Leaves Only Two Options

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