I have alluded to fractional reserve banking in the past, and David sent me an e-mail a while ago wondering about it. I don't have a lot of time these days to delve into it (or much of anything beyond me super cool kid), but I have understood that it was at most 5% (in Canada), and maybe as low as...gulp...0%. Makes you feel good about paying interest, eh?
But I stumbled upon this article that had in its first paragraph -
"The banks have no reserves other than debt."
Negative reserves? We are really fecked. What if I want to pull my million bucks (I wish) out of the bank in Loons? Is the bank going to tell me that they have no money - let alone my money?
It's a short article to read, with references to the New World Order and the Amero in the comments. Here is a snippet -
The reserves have collapsed - the banking system itself is bankrupt. Credit crunch is a very nice way of saying this, credit crisis is starting to sound a little more accurate.
Ah, but the Federal Reserve has saved us from a bank run! Well, they've put up $140 billion (plus whatever they're adding this week) so the economy could have $20 billion in loans - this is an amazingly ineffective & convoluted means of generating financial activity.
The reserves backing your checking or savings account are all owed to the Federal Reserve and the banks don't have the capital necessary to generate enough profit to ever reasonably pay this debt back.
It's a very twisted illusion that we live in.