video.google.com — The candidacy of Ron Paul has brought monetary policy back into public consciousness?in particular, his opposition to the Fed appears to many to be strange, as the issue is not commonly known nor understood. This video, though not 100% in agreement with Ron Paul, explains the history of fractional reserve banking and its negative impact on us all.
Dec 3, 2007 View in Crawl 4
berkanaDec 4, 2007Submitter
This video needs to be seen. Fractional Reserve Banking is fundamentally fraudulent, and is the root of many of our economic woes, but as serious as it is, this issue is hardly understood by the public at large. This issue is more important now than ever, especially with an election year coming up.Ron Paul is the only candidate that seems to understand monetary policy. Ignorance of the issue will destroy our economy; it is for our own survival sake that we must elect someone who understands how important sound monetary policy is. All the other candidates don't appear to know the first thing about the matter.The issue isn't as simple as the gold standard. (The video concludes that the gold standard isn't really viable at this point in time, which I agree with. Ron Paul's position may differ, but in any case, Ron Paul is more correct than not.) I urge all to watch the video; I can't do it justice here.See also the video link titled "Money, Banking, and the Federal Reserve" here:<a class="user" href="http://www.fdrs.org/banking_history.html">http://www.fdrs.org/banking_history.html</a>It gives a concise and accurate description of the history and problems fundamental to fractional reserve banking.
sonkDec 5, 2007
Nice. I have a copy of Fiat Paper Money. Great book. It's the most comprehensive history of paper currency out there. It opened my eyes to the predictable pattern of fiat money instruments. They never work.
berkanaJan 19, 2008Submitter
You have a fundamental misunderstanding of the consequences of fractional reserve banking. It may enable those who shouldn't be getting loans to get loans, but their loans, enabled by the monetization of debt, often result in foerclosures more than successful home ownership. Foreclosure due to rocking of the economy by the banks, enabled by fractional reserve baking, is not good for the average worker. Neither is inflation, which destroys the value of the worker's savings; inflation need not happen. It is a consequence of the mechanism of inflating the money supply built into the fractional reserve banking system.See BBC's graphical explanation of the sub-prime mortgage crisis to understand why this is so. Some of the graphics are interactive; play around with them for more info: <a class="user" href="http://news.bbc.co.uk/2/hi/business/7073131.stm?src=rss">http://news.bbc.co.uk/2/hi/business/7073131.stm?sr ...</a>
jaymzdeanSep 16, 2008
While Warren Buffett has a point, he can't erase the fact that throughout human history, precious metals have held intrinsic value due to their utilitarian advantages and rarity. This will not change. The problem is that the lion's share of the gold has ended up in the hands of very few, and THIS is what must be remedied.
seanofOct 26, 2008
"Moreover, shifting risk to different people/companies that specialize in monitoring and using risk can turn any financial risk into a known dollar amount..."That exactly what made this housing crash as bad as it is. Wall Street thought they had taken the risk out of loans.
whit3hawkDec 30, 2008
Just saw the video you loaded. Quite good. I haven't been able to find any groups working on monetary reform. Do you know any?
konnnanJul 27, 2009
Wow the up and down the business cycle sounds like a great way to get other people to do the job, and then steal it.