Fractional reserve banking – The Rainbow Blog

The Black Heart Of Banking

Bill Kruse — Sat, 21 Aug 2010 09:19:45 +0000

Banks don’t actually need any capital base at all, they can make money up from the thin air at will (setting aside the dictates of the BIS which is biased on the side of the banks) and gift it or loan it at .01% interest to deserving business and so promote the creation of wealth. …

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No Reserve Banking

Bill Kruse — Mon, 28 Jun 2010 06:23:44 +0000

It’s suggested that the banks have had a stern warning from the Toronto G20. I say that’s nonsense. What would really upset the banks is the re-introduction of narrow banking, and I see no signs of that, or genuine competition like encouragement of public bank ownership and I see no signs of that either. I think that …

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Economics Game-Changer

Bill Kruse — Fri, 11 Jun 2010 10:55:18 +0000

The phrase ‘fractional reserve banking’, together with a reference to banks lending more money than they actually have, has finally appeared in a UK mainstream paper. Edmun Conway in the Telegraph recently penned the following:”Capitalist societies chose some decades ago to have a “fractional reserve banking” system – where banks lend out more cash than …

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Myners Gets The Bird

Bill Kruse — Wed, 09 Jun 2010 13:31:54 +0000

Here’s former financial services minister Paul Myners in the house recently, attacking the government of which he was a part; “There is nothing progressive about a government that consistently spends more than it can raise in taxation…” he says and goes on to criticise Labour’s economic policies as “flawed economic thinking”. Um. Would consistently spending …

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Fun You Can Have With Gold Bullion

Bill Kruse — Fri, 05 Mar 2010 13:35:12 +0000

Fractional reserve banking, where in theory the banks don’t actually have to have the money they lend you and in practice means they don’t actually have to have any at all, doesn’t just apply to money. They can do it with gold too; http://www.gata.org/node/8388 Proof once again that while it might make the mattress lumpy keeping gold …

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The Banking That Dare Not Speak Its Name… Speaks!

Bill Kruse — Wed, 27 Jan 2010 14:24:13 +0000

Here’s something we very rarely see; open mention in a mainstream national newspaper (albeit the online version) of the true nature of banking; http://www.independent.co.uk/news/business/news/king-calls-for-radical-banking-reform-in-uk-1879931.html Bankof England governor Mervyn King offers his views on current banking practices; saying among other things,”Whatever the pros and cons of various alternatives, the system that has the least going for …

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New Banks For Old! Oh Wait; They ARE The Old…

Bill Kruse — Mon, 04 Jan 2010 14:30:11 +0000

New banks are being created to buy the old ‘Good Bank’ formed form the ashes of Northern Rock. A good thing? Not in my view, simply more of the same. We don’t need more private banks operating for private profits, we need genuine competition to the existing cartel not additions to it. We need banks …

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Fiat Empire

Bill Kruse — Mon, 07 Dec 2009 16:20:37 +0000

There’s an interesting interview you can read with James Jaeger, (creator of the Fiat Empire movie, available online at http://www.fiatempire.tv/ ) over at http://www.rightsidenews.com/200912067643/politics-and-economics/james-jaeger-on-how-to-survive-as-a-libertarian-rebel.html Some good stuff there. BB

Bad Banks!

Bill Kruse — Sat, 05 Dec 2009 14:52:03 +0000

Banks or their equivalent can’t be allowed to make a profit at the expense of the rest of the community. This has been recognised for thousands of years. Old-time religions are recorded as being against it. I suspect there was wisdom behind this thinking, it was better understood then that within a community you cannot …

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Unfair Bank Charges

Bill Kruse — Fri, 04 Dec 2009 11:34:52 +0000

Much in the news lately about unfair bank charges. Plenty about overdraft charges – but what about interest? Let’s examine why we have interest on loans. If you borrow 500K from your mate, while you have it, he doesn’t have use of it. He can’t use it to further his own interest and so it …

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