People Do Not Really Understand the Concept of Banking
All the banks are broke. Bank Santander, Deutsche Bank, Royal Bank of Scotland, they’re all broke. Why are they broke? It isn’t an act of God. It isn’t some sort of tsunami. The banks are broke because we have a system called fractional reserve banking invented by governments and central banks. Which means that banks can lend money that they don’t actually have. It’s a criminal counterfeiting scandal and it’s been going on for too long.
Government Politics and Central Banks
Most of the problem starts in politics and central banks, which are part of the same political system. We have counterfeiting, sometimes called quantitative easing, but counterfeiting by any other name. The artificial printing of money, which if any ordinary person did, they’d go to prison for a very long time. Yet governments and central banks do it all the time.
Central Banks Manipulate Interest Rates
Central banks repress the amount of interest rates so we don’t have the real cost of money and yet we blame the real retail banks for manipulating LIBOR. The sheer effrontery of this is quite astonishing. It’s central banks counterfeiting. It’s central banks that manipulate interest rates, Commissioner. Plus, underneath all this, we talk loosely, in a rather cavalier fashion, do we not, about deposit guarantees. So when banks go broke through their own incompetence and counterfeiting, the taxpayer picks up the tab. It’s theft from the taxpayer.
Epstein on United States His Start on Wall Street and Fractional Banking
Fundamental part of money which is called fractional reserve banking is something that finance people understand and the people on the street – and when I say people on the street, that’s where I was when I started on Wall Street – would find it impossible to believe. I give you one dollar just one single dollar in our system of banking.
Epstein Explains What Fractional Reserve Banking Counterfeiting is
I would say, “OK Steve, I gave you a dollar. How much could you lend out to your friends?” Your natural reaction would be, “Probably something less than a dollar, because I want to keep something in my pocket.” The way our central bank fractional reserve banking system works is if you as a bank, are holding my dollar, you can lend out an additional eight or nine dollars. No, it’s impossible. I only have a dollar, Jeffrey. We have something called central bank fractional reserve banking, which is if you have one, you can lend out nine. That’s the way our banking system works.
World Leaders and Wall Street Know, but Common People Don’t Know About Central Bank Fractional Reserve Banking Counterfeiting
So not only do world leaders not understand banking, but the man on the street, my father worked in the Park Department, it would be beyond his imagination that people could lend out more money than they actually had in their pocket. If the public understood that the bank really doesn’t have their money at any one time, there’s one of the things during the Depression, there were runs on the bank. The reason the banks don’t keep much money in the actual bank is they assume that not everyone’s going to want their money on the same day. So it’s not really the fear of inflation. The fear is a run on the bank. Everybody wants to take out something that doesn’t really exist.
