…We Want To Know
Sunday, February 5, 2012
Posted by The Interest on January 22, 2009
Icelanders are protesting and rioting against their government run banking executives in regard to their tanking economy and money. Maybe they should start yelling “Where’s The Interest!?”
Posted by The Interest on January 21, 2009
From an interview of Ron Paul by Glenn Beck on 1/21/2009, Beck says this…
Banks are a really bad thing when we get in bed with them.
The blame of banks is increasing but the blame of the system (federal reserve banking) hasn’t caught on with enough people yet. Including these TV hosts.
Posted by The Interest on
Ron Paul comments on Tim Geithner confirmation hearing today, 1/21/2009 on Bloomberg TV:
What has to be challenged is this concept of fractional reserve banking where debt is pyramided. That’s the problem and it has to be unwound and a new system has to be devised. This system has ended just as Brenton Woods ended in 1971. The post Brenton Woods system has ended too and that’s why the financial system doesn’t work.
Posted by The Interest on
In Mish Shedlock’s blog post Open Letter To Congress On Sharing The Pain, he states the following in regard to fractional reserve lending:
Unquestionably bank greed came into play. Massive leverage and off the book SIVs by Citigroup and others certainly played a role. However, it is important to understand the Fed’s role as an enabler.
The culprit in this case is fractional reserve lending. This fraudulent policy, sponsored by the Fed, allows more credit to be extended than there is base money supply. This was the enabler that allowed banks to lend and securitize over and over and over again, recording fake profits every step of the way.
Over time, asset bubble form such as the bubble in housing. To keep the bubble going, the Fed printed more and more money, and banks extend more and more credit. As with every credit bubble, there eventually there comes a day reckoning when what has been lent out, cannot possibly be paid back. That day of reckoning is now.
In simple terms the Fed is a sponsor of the world’s biggest Ponzi scheme. The scheme has now blown sky high, as money to keep the bubble growing simply ran out. That is why 10 new Fed programs have failed to produce any results.
Unless and until fractional reserve lending is eliminated, these kinds of problems will reappear. I ask Congress to disallow fractional reserve lending. It cannot be done at once, but it can be phased in over time. It will be a painful process but banks must share in the pain for their role in the mess.
As stated on Where’s the Interest?, the fractional reserve lending is a big part of the problem in that money is created from new principal amounts in loans and inserted into the economy as debt. The interest dollar is never created thus making it impossible for the system to ever be in balance.
Posted by The Interest on January 20, 2009
Required viewing… The Ascent of Money by Niall Ferguson.
Here is the PBS video. Or watch the Google Video version…
