Forum Post: Fractal Banking

THE FRACTAL BANKING SYSTEM

If the 99% of the people knew what the 1% knows about how our money is created and by whom, the number of protestors would increase tremendously overnight.

I believe most people still think that when they borrow money from a bank, they are borrowing money that is on deposit by other people. Nothing could be further from the truth!

All the bank has to have is assets of 10% of the loan and after that the bank creates an electronic amount equal to the amount of your loan. This money is created out of thin air, but you will be paying interest on this artificially created money until the loan or mortgage is paid off.

Now wouldn't it be great if YOU could do the same thing that the bankers can?

Countries are also treated like individual borrowers by their central banks. The bulk of the population believed central banks, like the US Federal Reserve, is a government entity. NOT SO!! The Federal Reserve is a private bank which was given the right to create money, then lends this money created out of thin air to the government and charges the government interest.

Banking used to be a boring business. Money deposited by clients was paid a certain amount of interest, and this money was lent out at a higher amount of interest. The bank kept the mortgage and eventually the client paid off the mortgage, and the bank had made a profit. With fractal banking and less and less regulation, banks have now become gambling casinos.

Recently a Swiss bank declared a 2 billion loss supposedly because of a rogue trader. Yet US banks and trading houses declared enormous losses and had to be bailed out due to exactly the same thing that one Swiss banker got blamed for. Except in the US the people causing the losses received billions in bonuses, and the taxpayers made up for their losses.

And every day we hear news that goes on and on about the weak banks that have to be shored up with more funds. But people still don't understand that this weakness was and is still being caused by a system that still allows banks to act as gamblers.

I think more people should be made aware of why fractal banking with all its leverage has caused banks to enter the gambling game.

IT IS TIME TO STOP THIS!