At the 321gold site, there is an interesting article in their archives entitled “Billions for the Bankers, Debts for the People. The Real Story of the Money-Control Over America” by Pastor Sheldon Emry. He writes in 1960 “Current fractional reserve requirements allow them to use that $1 billion in bonds to ‘create’ as much as $15 billion in new ‘credit.’ ” How quaint! Today, circa 2004, which is, if I am using my calculator correctly and am looking at the correct calendar, and there is that Miss May again with a twinkle in her eye, a scant 44 years ago. But turning to Barron’s and gong to the data on the banking system, we note with wry amusement that Required Reserves are only $42 billion, and that Total Reserves is not that much better, coming in at $44.3 billion.
So how much money has been loaned against that $44.3 billion? Somewhere north of $4,600 billion. So $44.3 billion has been multiplied by 109 times! Hahahaha! If there was ever anybody who doubted that the Federal Reserve and the banking system are killing us, this ought to shut them up! Hahahaha! That means that in the last 44 years; the fractional reserve requirement has expanded from the textbook example of 10:1, to 15:1, and now to 109:1! One lousy dollar of reserves has created $109 in new lending! Hahahaha! This is insane!
Yeah, this should work out well.