Six Steps That Will Change Your World ²    How to Reverse Global Warming ²     The Peaceful Revolution.com ²

Economic  Sanity 101

Standard Paragraph Format  

Why do banks need to loan money to each other and why is the public repeatedly being told that inter-bank-lending is such a critical part of the present-day economy?   We have yet to find any clear answers, so here's our best guess.   If you have some insight on this question, we'd like to hear it.  Please Contact Us.   

It appears that the reason revolves around the creation of more make believe money using fractional reserve lending. ^**ggm5    For example, when  bank #1  receives a thousand dollars, it calls that money an asset, which allows it to loan out ten thousand dollars.   When that thousand dollars gets deposited in bank #2, bank #2 calls the ten thousand dollars an asset and loans out a million dollars.   When that million dollars gets deposited in bank #3, bank #3 calls the million dollars an asset and loans out ten million dollars.  Etc. Etc.   Everybody appears to be wealthy, but nobody has any real wealth.   It's all make-believe money.

The lending laws, procedures, and lending documents  are is designed by lawyers with the intention of making things confusing, complex, hard to understand, and easy to manipulate the public.

We'd also like to find out how much money the taxpayers have paid to the Federal Reserve in interest since 1913.