Federal money system a swindle

To The Eagle:

Some discussion of doing away with the Federal Reserve Banking System has been heard lately on the news. This is good news.

The bad news is the Federal Reserve Banking System itself.

The purpose of the Federal Reserve System is to create reserves for commercial banks. To create these reserves , an officer of a Federal Reserve Bank writes a check, usually to a securities dealer to purchase some type of bond, most often a U.S. Government bond. The Federal Reserve does not have a checking account. They only have a checkbook. What comes next is made possible by the banking system being in charge of clearing checks. This Federal Reserve Bank check is credited to two accounts. It is credited to (or deposited in, as most folks say) the account of the securities dealer whose name is on the check. It is also credited to (deposited in) the reserve account of the bank where the securities dealer does his banking. What principle of accounting allows the clearing of a check written against an unfunded account, or one check being deposited in two accounts? None. At its most fundamental level, our money system is a hoax, a fraud, a swindle. This hoax is what the commercial banking system build on. What do they build? Why, another giant hoax, of course! They call it fractional reserve deposit expansion. I call it fictional reserve deposit expansion, because as we have seen, the reserves are a bookkeeping fiction.

Gilbert Vik

Cathlamet