Crime Against Humanity: the Bill, 2

For the sake of simplicity, we will not consider the interests and their compounding nature stemming from debt money, which we already know. So now we will briefly consider the mechanism of fractional reserve as free from it, but remember that in actual fact it is not; as to the fractional reserve requirement, for the sake of simplicity again we will suppose it’s ten percent, but remember that in actual fact it is more likely to be around one or two percent these days. So you may want to repeat the exercise a second time using such more realistic percentage, and then have fun a third time by introducing the compounding interests.

I would stress that here I use the term “penny” to indicate both the cash−delivery and the credit−promise, to reflect more clearly one of the foundations of the swindle: passing off a promise as a delivery. Only the first penny is cash; all the rest is fractional reserve fraud.

On the fraudulent basis that the banker is debtor instead of bailee, when he/she receives a deposit, he/she becomes the owner of it in exchange for a corresponding debt, and so he/she can dispose of it and deposit it as a reserve in the central bank, which accepts it and equates it to cash, and so use it as fractional reserve to create further money out of nothing.