{"id":14745,"date":"2015-11-24T09:00:45","date_gmt":"2015-11-24T14:00:45","guid":{"rendered":"http:\/\/olduvai.ca\/?p=14745"},"modified":"2015-11-24T09:01:06","modified_gmt":"2015-11-24T14:01:06","slug":"fractional-reserve-banking-is-pure-fraud-part-i-jeff-nielson","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=14745","title":{"rendered":"Fractional-Reserve Banking is Pure Fraud, Part I &#8211; Jeff Nielson"},"content":{"rendered":"<h3><a href=\"https:\/\/www.sprottmoney.com\/blog\/fractional-reserve-banking-is-pure-fraud-part-i-jeff-nielson.html\" target=\"_blank\">Fractional-Reserve Banking is Pure Fraud, Part I\u00a0<\/a><\/h3>\n<p>This is a commentary which should never have needed to be written. What is euphemistically called \u201cfractional-reserve banking\u201d is obvious fraud, and obvious crime. By its very definition; it transforms the banking sector of an economy into a leveraged Ponzi-scheme, and as with all Ponzi-schemes, there is no possible \u201chappy ending\u201d here.<\/p>\n<p>Mathematically-based principles are often illustrated best through use of an extreme, numerical example. We have no need to construct any hypothetical extremes, however, when we already have real-life insanity, in our current monetary\/regulatory framework.<\/p>\n<p>Here it is important to note that in order to conceal the fraud, crime, and insanity of our present system to the greatest degree possible, the bankers hide their dirty deeds within their own convoluted jargon. Thus presenting \u201cfractional-reserve banking\u201d to readers requires some brief investment of time in definition of terms, starting with this term, itself.<\/p>\n<p>Fractional-reserve banking evolved literally based upon the temptation of all bankers to perpetrate fraud. Empirically it has always been observed, down through the centuries, that under normal circumstances, only a tiny percentage of depositors will come to claim their cash\/wealth at any one time. Thus the temptation is for bankers to \u201clend\u201d more funds than they actually possess, i.e. they are \u201clending\u201d what\u00a0<em>does not even exist<\/em>: \u201cfractional-reserve banking\u201d \u2013 the ultimate euphemism of banking and fraud.<\/p>\n<p>It goes without saying that anyone or any entity which endeavours to \u201clend\u201d something which does not exist is perpetrating fraud. But before examining this inherent fraud more closely, it is important to back-up, and look at the Law. Note that even when banks \u201clend\u201d the money which they actually\u00a0<em>do<\/em>\u00a0hold on deposit (as trustees for the depositors) that this is already wholly\/totally illegal. It is the crime known as\u00a0<a href=\"http:\/\/conversion.uslegal.com\/criminal-conversion\/\">\u201cconversion\u201d<\/a>.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fractional-Reserve Banking is Pure Fraud, Part I\u00a0 This is a commentary which should never have needed to be written. What is euphemistically called \u201cfractional-reserve banking\u201d is obvious fraud, and obvious crime. By its very definition; it transforms the banking sector of an economy into a leveraged Ponzi-scheme, and as with all Ponzi-schemes, there is no [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[63,1035,5206,1708,950,6354,2942,6355,868],"class_list":["post-14745","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-cash","tag-economic-system","tag-fractional-reserve-banking","tag-fraud","tag-jeff-nielson","tag-ponzi","tag-sprott-money","tag-wealth"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14745"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14745\/revisions"}],"predecessor-version":[{"id":14747,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/14745\/revisions\/14747"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}