Uploaded on Saturday 13 June, 2020 to the illusion of money
Money creation in a fractional reserve system
Money creation varies by country as per the legislation on the books. By definition, the money supply consists of narrow money, which is all tangible money in notes, coins or reserves as well as money in demand deposits and other liquid assets held by the central bank, and, so too does it consist of broad money, which is all money held by households and companies, whether in tangible form or bank deposits, treasury bills and gilts.
New money is essentially created in either of two ways from quantitative easing (QE), which involves the process of the government emitting bonds onto the open market, normally to pension funds and other asset managers, and selling the bulk thereof to its central bank in order to raise money and stimulate the economy, or, from loans by commercial banks. The latter may take the form of money loaned from a depositor to a bank for an agreed duration of time (full reserve banking), or money loaned from a bank to a depositor as a fraction of reserves held in bank deposits (fractional reserve banking). This tutorial explains the money multiplier of liquidity in a fractional reserve system.
This video is courtesy of the Khan Academy whose YouTube channel is available here.
Ellen Hodgson Brown, President & Founder of the Public Banking Institute (PBI) and author of such books as "The Web of Debt", The Public Bank Solution", addresses the PBI 2012 conference in Philadelphia.
Victoria Grant, seen here aged 12 years old, addresses the first annual Public Banking Conference in Philadelphia, PA. Her father and she discovered that the debt money system was what was wrong with the Canadian economy and decided to do something about it.
The Bank of North Dakota was established by legislative action in 1919 to promote agriculture, commerce and industry. North Dakota is the only state to have escaped the credit crisis. For every year since 2008, it has run a budget surplus and it has the lowest unemployment figures in the US, the lowest default rate on its loans and the lowest foreclosure rate.
Mike Krauss, Chairman of the Pennsylvania Project, puts forward his proposal, based on the success of the Bank of North Dakota, to create a Public Bank for the state of Pennsylvania. Such a move would free the state from the clutches of the Fed, reduce the debt burden, boost investments and serve the public interest.
Most people hold the view that their bank deposits are safe with the big commercial banks, however, this assumption is not based on the facts. This video features official government documents detailing information that should sound anyone's alarm bells [edited].