Here is a quick intro to banking:
So in plain words, a bank under the fractional reserve banking system, can create money out of thin air. This of course creates inflation, so the value of your dollar goes down because of this. This inflation can be seen as a hidden tax. My question is why would we allow this banking system to operate, when the money that bank creates and lend out is made out of thin air, this new money steals value from the money already in circulation. It is really just like stealing money from the people that own money. The smart people of course don’t have their assets in money, as this banking system inflates the currency, every time the banks make a new loan.
And another this is from the movie Zeitgeist:
Here comes a excellent documentary that explains it all, in three parts.
What can we do about this
We need to reform the banking system.
What we could do is to have a state owned independent central bank. The power of making money is held only by the central bank. The central bank makes debt free money, that the government spends it into the economy. Private banks can not create money. The amount of new money is now under the independent control of the central bank. Maybe a target of 0 inflation would be nice? The central bank can regulate the inflation by regulated the amount of new money created. The fractional reserve banking system will cease to exist.
Here comes two short clips that explains it:
More to come…