Why the Banks are Broke

Why the Banks are Broke

By Friday last week we were told that three US banks had failed. Americans were limning up trying to get their money out of the respective banks, many to no avail. There was panic bubbling up at home and abroad. This was caused by these banks not having enough money to pay their depositors and the problem would surely spread to the entire western world. After all, they all worked on the same principle; that is, the fractional reserve system.

The fractional reserve system has worked wonderfully for the banks, racking in so much money for them they now, with their political elites, are getting ready to rule the entire western world with marching orders from the World Economic Forum. How did this happen? How does the fractional reserve system actually work?

In the beginning of money, gold and silver wasn’t just used as money, they were the money used until the economy grew to the point where it was no longer feasible to carry around large amounts of coins. Then paper certificates were invented. These certificates represented that the bearer had that much gold in the bank for his or her purchase and the receiver of the certificate could take the certificate to the bank and exchange it for gold. And this was more or less true until something happened in March, 1933 that upset the balance.

In 1933 President Franklin D. Roosevelt was US president and was besieged with money worries. The depression was still dragging on even though he and his offices had over spent while trying to make things better. And things didn’t look good over in Europe. He felt he needed to ramp up the military.
This would all take way more money than the US had in gold that was backing the dollar. So Roosevelt and his advisers decided to take the US dollar off the gold standard. This meant they could borrow as much as he and his offices felt they needed without having to check their gold count. And it wasn’t until after world war two that there was a rethinking of this way to go as the international debt loads were becoming enormous. Enter Britton Woods One.

Representatives from 44 different countries came together in New Hampshire as the Second World War was ending to try to figure out what to do about all the world debt that had accumulated during the war and how to rebuild their economies. The decision was to peg all economies to the US dollar and the dollar would again be priced to gold. So far, so good. Back to the gold standard, right?

Well, for awhile. Until 1973. Richard Nixon was president and he didn’t like the restraints on borrowing that came with the gold standard so he took it off the gold standard and began to use the fractional reserve banking system. All the other countries followed suit. The fractional reserve banking system now had nothing to do with gold, and demanded only that the banks keep a fraction of their money from deposits in the bank, usually ten percent, in reserves. And this is what the banks are supposed to have in reserves and they probably did. Until 2020. What happened then?

I will skip the part about how the US dollar became the Petro dollar as that is a post in itself, and I want to stay with the story of the The Federal Reserve system that is bringing the banns down. The Board of the US National Reserve announced on March 15, 2020 that the required reserve for deposits has been reduced from ten percent to zero. That’s right, folks, zero. The banks have no dollar reserves. They are all broke. Like the spoiled children they are they have spent all of our money. Still, today the news came that the Fed will not let the banks fail, they will just print more money and prop them up, and give the banks and themselves more bonuses. Of course Canada will follow suit. And the IMF just waits, like an old white haired fat spider, just stoking the flames with train wrecks, fertilizer, food and medicine shortages, rising prices on all necessities of life. They are deliberately trying to snuff out as many humans as possible. It is time to revolt. More next time. March 12, 2023