Wednesday, October 26, 2011

Fractional Reserve Banking System

It is pretty important to understand the nature of the money system. Basically it is all based on debt and future growth. So what what happens when the growth stops and folks don't take on more debt. This causes deflation and the government to print money.

The following are references to understanding Fractional Reserve Banking:

References
http://www.zerohedge.com/news/michael-maloney-we-pay-tax-privilege-have-currency
http://andolfatto.blogspot.com/2011/09/fractional-reserve-banking.html
http://hir.harvard.edu/debt-deficits-and-modern-monetary-theory
Alf Field: America’s Current Account Deficit Causing World’s Financial Crisis! Here’s Why

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