Uploaded on Sunday 14 June, 2020 to the illusion of money
How new money is multiplied in a fractional reserve system
It is a common misconception to hold that most of the money in the system is within a central bank's control. Central banks are tasked with fulfilling certain roles, like to act as the lender of last resort to financial institutions whenever a short-term need for money arises to manage payments. Known as liquidity insurance, this safety net is vital in an economy of fiat money where the public's trust in the value of promissory notes is of paramount importance. Quantitative easing (QE) is a bilateral process which involves the treasury issuing liabilities in the form of government securities onto the market and the central bank injecting liquidity into circulation by either printing money or, in most cases, creating money digitally and purchasing the bulk of the bonds. The funds transacted get deposited into bank accounts, which serve to replenish bank coffers for future lending. This tutorial explains the part that a central bank plays in fractional reserve banking.
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].