Fractional Reseve Banking – How Money Works
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This is a very clear, non-technical explanation of how money works in a fractional-reserve banking system.
[youtube]http://www.youtube.com/watch?v=vm3DixfL9o0[/youtube]
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ram
1
May 13, 2009, 9:17 am
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TopVery good video illustrating the flow of money the modern money mechanics .rightly said that 97% of the money is digital…well must watch video interesting fats
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Dineen
2
May 13, 2009, 2:32 pm
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TopWhats interesting is that the Federal Reserve is not owned by State but rather run by a board of Governors in the model of a corporation. The Federal Reserve essentially runs the government by increasing and controlling the amount of US debt, so isn’t the US just one large corporation rather than a free democratic country?
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admin
3
May 14, 2009, 7:07 am
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TopDineen – I know the Fed is privately owned. It’s about as “Federal” as Federal Express. And the fact that a “free” country is indebted to a private entity is concerning. I think it was Charlie Munger (Business partner and friend of Warren Buffet) who wrote: “He who owns one’s debt owns one’s ass”.
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rachel
4
May 15, 2009, 4:33 pm
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TopThank you for posting this! I enjoy hearing about money and the banking system in these financially bad times. Very insightful facts. Good work!
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ajeet
5
May 16, 2009, 4:38 am
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Topwhat a video.thanks a lot,its shown me the moderm money mechanics.it help me to know some interesting facts..
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Rajesh
6
May 18, 2009, 5:18 am
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TopI am really happy to see your views and points with the clear explanation of fractional reserve bank and how money works because we may get different statements from different experts but i have found clear information. I really wonder and we are really thankful to sharing valuable things to us.
Thank you.
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Nick M.
7
May 18, 2009, 11:59 pm
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TopThank you for posting this video. It is so refreshing to see simple explanations of economics.
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MeltingPrism
8
May 19, 2009, 8:06 am
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TopThis video is very interesting, it’s true that most money is electronic. It’s great to see other people get what’s going on with fractional reserve banking and how it works. Thanks for the interesting facts.
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EzBoy
9
May 19, 2009, 8:37 am
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TopThanks for posting this. I think concept is very similar to fiat currency. If you want to become wealthy, do not use any paper currency. We need 100% backed crrency similar to egold. Or best yet, make all your transactions gold/silver based. Gold/silver will never loose any value..
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ShawnG
10
May 19, 2009, 6:26 pm
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TopThe whole idea that the federal government has allowed private banking to completely take over our monetary system is mindblowing. I can’t believe the public has allowed this to go on!
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Techygirl
11
May 22, 2009, 3:03 am
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TopWonderful video illustrating the flow of money. The video is good and tells about the real facts..Highly informative post.
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ANITHA
12
May 22, 2009, 5:47 am
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TopThe idea of posting the how money works in a fractional-reserve banking system such a educative topic and useful information for the business minded person posting this type of topic with helps a lot to develop the business
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Danyel
13
May 25, 2009, 8:43 am
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TopGreat video link! With the big financial crisis it’s important that people understand, not only how our banking system works -but, as illustrated in your link, who controls the flow of money. Kudos!
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Techguy
14
May 26, 2009, 2:59 am
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TopThis video gives very informative details about how money works in fractional-reserve banking system. This is very helpful for the development of business.
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Glorious
15
May 26, 2009, 3:11 am
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TopThe idea idea of posting the fractional reserve banking gives more information about how the money has become electronic. This video has given more information about digital currency.
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idea
16
May 26, 2009, 3:13 am
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Tophiiiiiiiiiiiiiiiiiii thanks for posting.Gold/silver will never loose any value..
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Travis
17
May 27, 2009, 11:44 pm
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TopVery interesting. It makes a lot of sense that money is debt. But is there anything really wrong with that? I wonder what it would take to decentralize this system and have every individual be able to issue notes that could eventually be paid back to him. We would need a way to manage innumerable exchange rates for one, but what an interesting puzzle.
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admin
18
May 28, 2009, 7:05 am
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TopTravis – thanks for participating. To answer your questions on whether there is anything “wrong” with a monetary system that is fueled on debt, I’ll quote Charlie Munger (investing partner of Warren Buffet and billionaire) – “He who owns one’s debt owns one’s ass.”
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Frank
19
May 31, 2009, 8:09 pm
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TopA very interesting video. I was suprised by how not srprising some of the information was. The system is fundmentally flawed – all to protect private banker’s interests.
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Nicole
20
June 3, 2009, 6:16 am
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TopWow, this is really fantastic, I love how the video broke things down into easy-to-understand common language. Perhaps now that the economy is floundering as it is we will see some reform in how private banks are being run.
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Mark Q.
21
June 3, 2009, 4:07 pm
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TopOh, wow. Now that makes sense to me! I never really fully understood the way money works these days, but now it’s a little more clear. What a great video – keep posting stuff like this!
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gaurav
22
June 4, 2009, 11:07 am
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Topit was a nice video…enjoyed seeing the flow of money shown in the video
very interesting facts were also given..nice work!!
keep up the good work!!
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Cc
23
June 4, 2009, 8:49 pm
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TopGreat Video!!! The entire money system of the united states is based on money that does not exist. checks are not legal tender and neither are credit cards, money orders etc. Even the cash that we carry around in our pockets is worthless in raw value. Since about 1932 we might as well be trading toilet paper for goods and services as money has not been backed by gold since that time.
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praveen
24
June 4, 2009, 9:09 pm
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Topim very happy to see those videos about money.i feel that im very late to see those jus now i came to know about your blog and watched those videos.surely ill refer to my friends and relative.hats off !!!!
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dasari
25
June 5, 2009, 2:19 am
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TopThe post is totally about how to money transcation will be done in the banking system entire description can be seen in the video which is very live interaction to view this keep it up by posting this kind of topics
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pratt
26
June 8, 2009, 7:00 am
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TopGreat video, it was nice to fetch some knowledge through your blog, which I must say is really full of information, as I know many of my friends still looking for information on money transactions, I\’ll refer your blog to them for sure.
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popescumarius
27
June 9, 2009, 2:12 pm
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TopThese are very interesting facts !
The fractional reserve system is practiced world wide.
People are no longer seeking credit to live outside of their means. Now all the inflated false values cannot be paid. At the moment there is no buying power , banks create money … virtual money !
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karthik
28
June 10, 2009, 12:53 am
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Topthis is really good video.This video gives very good informative details about how money works in fractional-reserve banking system.i really happy i give this details to my friends…really u done a great job.
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EzBoy
29
June 12, 2009, 8:42 pm
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TopVery information. It explains how money works and how banks and govt. creates tons of money out of thin air.. Good were older days when everything bought or sold based on their real value or in exchange of something real like gold or goat or cattlestock or similar.
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Matt K
30
June 13, 2009, 12:50 am
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TopI’m glad I watched this, because it really broke things down to lame-man’s terms, so that even I could understand. My dad will be very interested to see this.
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hasan
31
June 16, 2009, 6:34 pm
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TopThis is really an interesting video.I had never seen such interesting video clip.It reveals the standard of American money.Really this video is to be watched by everyone.
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Karthik
32
June 17, 2009, 12:41 pm
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TopWow!!!!!! amazing video i ever seen before. This will help us in many ways.
All people surely have to watch this clip. Its an important video too.please watch this Clip it ll really help you
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sree
33
June 19, 2009, 11:34 pm
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TopVideo is very interesting and detailed information is about the money and the banking system is provided in this video clipping.Thank you for giving this blog.
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ravi
34
June 25, 2009, 12:06 am
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TopThis is a nice video on How Money Works in Fractional Reserve Banking. Before i did not know how money works i.e. what is the process of all the money, with this video i knew some information on money.
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R. Prabhu
35
July 4, 2009, 2:34 am
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TopI have overcame many like this. But this is something different in explaning about money generation moderm money mechanics. Really a good thing to watch and make in contact.
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Baggy
36
July 4, 2009, 3:04 am
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TopThis is really an awesome video.The video is about modern money mechanism. Very very informative. Everyone must see this.
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Myra
37
July 7, 2009, 3:08 pm
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TopCan’t believe that this is what the global economy is based upon. Truly eye-opening; thank you.
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raviteja
38
July 11, 2009, 8:53 pm
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TopIt is a nice informative video on How Money Works in Fractional Reserve Banking . This video helped me in knowing the information of how the money flows i.e the process of working of money. Thank tou very much for this post.