Uploaded on Thursday 18 June, 2020 to the illusion of money
The system that preceded fractional reserve banking
The tried and tested alternative to fractional reserve banking is a defunct full reserve banking model. A full reserve banking system guarantees that the depositor's money will be available on demand, thus eliminating any prospects of money drying up with bank runs. Under this model, a bank may suggest a two-tier deposit account consisting of both on demand deposits (money available at any time for withdrawal for which the bank charges a fee for its safekeeping) and time deposits (money that accrues interest for depositors providing banks with monies to lend). A time deposit is an interest-bearing bank account that has a pre-set date of maturity. The money must remain in the account for the fixed term in order to earn the stated interest rate. A certificate of deposit (CD) is the best known example of such a scheme. Drawbacks to full reserve banking are that account holders are charged extra fees that they otherwise would not have to pay under fractional reserve banking and such a system does not increase the money supply, which typically augments sovereign debt as it necessitates a central bank to step in and inject liquidity, though personal debt may drop if overdrafts and credit loans are made scarce.
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].