Fire Your Bank

By: Michael Carey

Corruption In The Banking Industry Drowns American In Debt

91 years ago, way back in 1913 our Federal Government implemented legislation that removed their sovereign rights to increase the amount of money that circulates in this country. At the time, this may have seemed like the right and fair thing to do, but times have changed. Ever since that law was passed, the power to increase this country's supply of money has been held by the private banking institutions. The only way for banks to increase the amount of "money" in our country has been to create debt by issuing credit or loans to people who lack the cash they need.

Now, If you think banks have the money they've loaned you back in the vault, you're wrong. Banks create the money virtually from thin air, through a phenomenon they call "Fractional Reserves". In reality the monetary amount of money banks are allowed to lend to their customers surpasses the money they actually have in the vault by more then 90%.

So if your bank has 3 Million dollars in deposits on-hand, they're allowed to issue over 30 Million dollars in loans. You may be surprised when I tell you that, in fact, less than 5% of the money that circulates in this country is actual cash. The remaining amount, over 95%, has been created by banks and other financial institutions, and exists only on the computer screen and in peoples minds.

Many people assume that if government continued to print money on a regular basis, inflation would soar through the roof. This would be true ONLY if the government printed too much money. However, if just enough money was printed to match the annual increase in gross domestic product, inflation would not be increased at all. For instance, if the US projected a gross domestic product growth of 4.5% the government could increase the amount of money necessary for a growing economy would be debt free.

This kind of system would obviously impact our economy for the better, decreasing overall debt and allowing us to quickly pay off our national debt. A strong economy equals economic growth not only for the country as a whole, but for individuals, businesses, and families alike. Should banks have ultimate power in creating money that doesn't exist? Certainly not! Unfortunately, however, the only way for Americans to send a message to banks (and congress) is to make a commitment to living debt free. This means dealing on a Cash- Only Basis and avoiding the use of credit cards and loans at all cost.

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