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Forum Post: No More Fractional-Reserve Lending!

Posted 12 years ago on Oct. 30, 2011, 7:47 p.m. EST by AlternativeSynergy (224)
This content is user submitted and not an official statement

100% Reserve lending only (no more bailouts, no need for the fed, no manipulation of interest rates).

Government issued bank account for every citizen with an amount deposited yearly reflecting a per capita percentage of the desired yearly growth of the overall money supply (probably will be several thousand a year for every citizen over 18). The reason you need to do this is because with 100% reserves banking, you need to replace the old mechanism of using fractional-reserve lending for the overall money supply to grow.

The account will be split in two, one part for spending and the other part for saving. Deposits to the spending side would increase when unemployment is high, decrease when there is too much inflation. Money placed in the spending part of the account cannot be used for saving; we need to do this because of the paradox of thrift. The yearly total amount credited to both the spending and saving sections of our accounts will always equal the per capita percentage of desired growth of the overall money supply. If the government runs a deficit and needs to borrow, the first place it would borrow would be from our savings in the government bank accounts, with the appropriate interest paid to us.



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[-] 1 points by GeorgeMichaelBluth (402) from Arlington, VA 12 years ago

Anything is better than what we have

[-] 1 points by PowerToThePeople (11) 12 years ago

I agree. No more Fed or corrupt fiat money system controlled by the international banking cartel!

[-] 1 points by MonetizingDiscontent (1257) 12 years ago

Michael Maloney: "We Pay Tax For The Privilege To Have Currency"


= = = = = = = =

HOLY BAILOUT - Federal Reserve Now Backstopping $75 TRILLION Of Bank Of America's Derivatives Trades


(This move amounts to a direct transfer from derivatives counterparties of Merrill to the taxpayer, via the FDIC)

= = = = = = = =

Guess Who’s Even More Leveraged Than the European Banks?


the Fed is leveraged at 53 to 1. Yes, 53 to 1.

= = = = = = = =

[-] 1 points by suyabaa01 (244) from Milford, CT 12 years ago

Fractional reserve lending is a fraud. Can you write a check that your don't own? Banks can. Story is very deep.

May I suggest these two educational links to start with:

1) "MONETARY REFORM ACT" http://www.themoneymasters.com/monetary-reform-act

2) The Money Masters - Full http://www.youtube.com/watch?v=JXt1cayx0hs

Download PDF document from [1] -- very comprehensive 2-step plan for debt-free money system. And then watch documentary in [2]. You will learn everything you need to know. Then try this link if you like:


I was proposing returning back to debt-free money monetary system (Abraham Lincoln's "greenbacks") as our #1 demand.

[-] 1 points by AlternativeSynergy (224) 12 years ago

My post IS about a debt-free money system, with all the newly created money (we need it as the population and economy grows) going directly into the hands of the people. I've seen the videos you posted, this is right up that alley. When you eliminate fractional reserve, you need a new way to create new money, one way is have the government spend it into the economy, the other is having the government give it directly to the people (my preference).

[-] 1 points by suyabaa01 (244) from Milford, CT 12 years ago

The other way is proposed by Nobel winning economist: Milton Friedman.

He suggest that when govt. is paying its debt with debt-free money, banks holding T-Bills and receiving that money as replacement must gradually increase their reserve ratio, such that excess money injected into the economy is fully allocated as reserve. Finally, when all govt. debt is paid, banks will have 100% reserve ratio and that will be the norm thereafter. This will guarantee that no excess money will leak into the economy to cause inflation.

There are more measures, I just try to draw a rough picture. Please download the PDF document I mentioned earlier [1]. It covers all details of transitioning from "debt-money+fractional reserve ratio" to "debt-free money+100% reserve ratio".

[-] 1 points by amen88 (173) 12 years ago

this is a VERY IMPORTANT step. a must to get things back on track. truth be known, the biggest argument against this measure would be that the economy would not survive such a hit. although there is truth in this, we have to bite the bullet at some point when have already spent our grandchildrens inheritance.

[-] 1 points by AlternativeSynergy (224) 12 years ago

Amen amen88! After 200+ years of bondage it's time to get control of our money supply growth. That is our money, not for the banks to make interest off of. They could make interest the old fashioned way, offering an attractive interest rate to actual savers, not get the money from the fed at 0%.