The Trick of the Bankers
Continued from; Why you may want to buy Gold and Silver Now!
When I was a kid, I can remember how quarters and dimes had silver in them not pot metal.
Back around 1000 years ago when Rome ruled the world, the people would leave their money with the bankers and the banker would issue them a receipt for their money. The reason for this was it was easier for them to travel with the receipt than with the actual gold.
Which was at that time was only gold or silver. The trick, was that when the bankers realized that the people were not all coming for their gold at the same time, they realized that they could create more receipts than the amount of gold they were storing. And this became common practice among the bankers.
This is the first Fractional Reserve system.
So what is a Fractional Reserve System?
A fractional reserve system is one where the banks hold back a portion of the deposits but are allowed to issue more currency than what they have in the vault.
Now days it supposed to be ten percent held back, but some say they aren’t even adhering to that today.
Sounds crazy but that’s how modern banking actually works today.
I am hoping that as you read this you’ll see the absolute absurdity of all of this. Especially when you consider that you want your money to be safe.
It even gets worse when you consider that banks are allowed to gamble in derivatives of all kinds these days.
Derivatives what are they?
To make matters even worse the bankers in an effort to increase their profits they place bets on weather a commodity will rise or fall. That’s what derivatives are. When you think about all of this it will make your head spin and make you dizzy.
You probably like me thought that banks had a charter to do good things for the communities in which they resided. But not so these days they are just interested in making more and more profits for the bank.
The banks have been caught many times defrauding savers and manipulating those derivative markets. Don’t believe me check the news.
What’s the Difference between Currency and Money?
You must remember that currency is a banks game. That’s because they create it.
To be continued…
