REPORT DEAD LINKS --- we can't keep this site up-to-date without your help
To: CHerman / CHerman@lcusd.net
From: Martin Carbone
Greetings,
You have the following posted at <<http://model-economy.wikispaces.com/The+Heart+of+Economics>>
"Fractional Reserve Banking: This is how the banking industry multiplies any new money added by the Federal Reserve to the money supply. The definition of fractional reserve banking is that banks need only keep a fraction of total deposits on reserve and can lend the rest. What youâll need to know for the AP test includes the âreserve ratioâ (RR). The simplified version on the AP: once a bank is established, they must hold a percentage (ratio) of their total deposits âon reserveâ that is not lent to customers. This rate is set by the Federal Reserve (Fed), usually at 10% on your AP (about 6% in real-life taking in all factors). This means that if the Federal Reserve adds new money into the banking system, letâs say $1000 through creating money out of nothing and buying US government securities on the open market, almost all of this new money will soon end up deposited in banks. The receiving banks then collectively lend to customers up to $900 while keeping $100 on reserve. The person receiving the loan purchases something; the $900 then is most likely deposited into another bank. This bank lends up to 90%, and the process continues with the new money created measured by the formula 1/RR. In this case the new money created is $1000 x 1/10%, or $1000 x 10 = $10,000. Because the Federal Reserve is owned by the banking industry, this causes a classic conflict of interest because the banking industryâs profit comes from expanding the money supply and then lending it. Expanding the money supply is in conflict with the publicâs interest to limit the supply of money to guard its value from inflation."
I hesitate making changes (other than simple spelling corrections) directly to your wiki. I simply think such changes would tend to create confusion.
Therefor, I am communicating by email, hoping that we can come to an agreement on Fractional Reserve Banking (frb) and then jointly agree to whatever what will ultimately be put on the wiki.
Is there a better way to examine this subject? Perhaps I could put my words on your wiki without removing your words and we could discuss the differences on another page, while asking other members of this group to comment?
BACKGROUND --
1) I have a website on which I have loads of stuff about Money and Banking << http://www.primeronmoney.com >>
2) The main purpose of the website is to explain how our money and banking system works.
3) I recently have been working on the subject of frb and have come to the conclusion that the discussion on frb at wikipedia is more-or-less completely in error -- completely contradicting well known facts established established by the laws on banking.
4) The presentation on wikipedia gives two references -- both of which link to the Federal Reserve System (Fed).
5) I have separately and previously come to the conclusion that the Federal Reserve System is (are?) basically (and I know this is harsh) liars who have no interest in honestly explaining to the public how banking works. See <<http://www.primeronmoney.com/arewebeingliedto.html>>
6) I have examined one of the two references (see #4 above) (the other was a dead link) and I believe that reference is an absurdity -- having absolutely no relationship to the truth, reality and to the law on frb.
7) Further -- the material at wikipedia on this subject is substantially different from the material at the reference and I believe the wikipedia material is also absurd.
8) It might help if you look at my background << http://www.primeronmoney.com/backgroundmrc.html >>. I hope my record of accomplishment will convince you that I am not a raving lunatic.
Shall we try to communicate on this subject to see if we can come to some understanding?.
Perhaps it would be best if I start by making my argument on a new page on my website. We can then both look at your argument and my argument and proceed to do whatever makes sense?
I look forward to hearing from you.
I think this is all very important and am willing to work at this diligently until we come to some conclusion. Until the American public understands the basics of money and banking, I think we have no hope of advancing as a prosperous and reasonable society
Since we are both from California, as is Ellen Brown, It might be worthwhile for the three of us to get together and discuss this in person some time in a one-. or two-hour meeting. I can go anywhere for such a meeting.
Marty