Five Key Points
- In a Fractional Reserve Lending scheme, the notion there are meaningful reserves is ridiculous.
- Far more money has been lent out than really exists (the rest is a fictional accounting entry).
- Fractional reserve lending constitutes fraud (just as lending something you do not own is fraud).
- There is no way for all this money to be paid back (so it won't be).
- The Reserve Bank of New Zealand has the most sensible policy on deposit insurance of all the world's central banks. (NZ offers no deposit insurance). See my article for a full explanation.
In the sake of full disclosure, I own gold, silver, platinum, as well as shares in various mining corporations.
Mike "Mish" Shedlock