Fractional Reserve 101 - Foster Gamble

Film Synopsis:
THRIVE is an unconventional documentary that lifts the veil on what's REALLY going on in our world by following the money upstream -- uncovering the global consolidation of power in nearly every aspect of our lives. Weaving together breakthroughs in science, consciousness and activism, THRIVE offers real solutions, empowering us with unprecedented and bold strategies for reclaiming our lives and our future.

[edbarrett]

I'm not in America, so don't have all of the specific info to hand; but as I understand it, there is no need for the deposit to be $1, 000 for the bank to plan out $900. Until recently, the bank could loan out $900 for every $100 deposited; so a $1000 deposit would allow the bank to loan out $9, 000. The money it lends out, it literally creates out of thin air.

[OffGridInvestor]

the idea is that the money (which with a loan is often as a cheque or electronic transfer) ends up in the car dealers bank. the car dealers bank keeps the $900, loans out $8100. this process has to happen at LEAST 10 times, with ALL the money ( no stashing it in a hidey spot in your house, no dropping coins in the drain ) for it to work. probably takes more than 10 times. but EVENTUALLY the WHOLE $10K will be in reserve and create an exrta $9K. fed res creates new cash, banks increase by 90%.

[buckmajor]

I've been watching a lot of these videos, and its been awesome to understand how the banking system works. My question is, does this banking system apply to every bank in the world?

[maersklandro]

Yes. It's the very underlying operating principle, the very definition of what a bank is and does.

All banks operate in exactly this fashion.

What may very is what the obligatory fractional reserve may be (the smaller the percentage that needs to be held in reserves, the more times they may expand the money supply for a given amount of cash held as reserves) and the interest rates.

[NikiWonoto]

I feel that really, people are starting to "wake up", and amazingly, worldwide.
From all the revolutions happening pretty much around the world/planet now, the Occupy movement things, and the currently quite huge 'underground' global movement like Zeitgeist, Venus Project, Resource-Based Economy, and even the relation with 2012 & Global Ascension into Higher Consciousness things...they're all RELATED!!

This is a really exciting times we're living in,
for once, I suddenly feel HOPE again!..

[davidmireles]

Aren't there banks that exist apart from the Fed system? If so, whereupon a deposit is made at the non-Fed related bank, what changes in the accounting practices? Thanks in advance to anyone who answers this.

[GoodLifeGodLike]

@islandbuoy4 You're right, with the millions of galaxies out there, there couldn't be possibly be life out there. Good call bro!

[EvanWhittaker]

So, I'm having a little trouble understanding exactly what's going on here. Maybe one of you can help me out.

If I deposit $10, 000 and 10% is put in the vault, that leaves $9, 000 that is put into circulation. So, that $9, 000 is loaned to someone for a car or whatever else and then re-deposited. My question is, if that $9, 000 is put into circulation, why is it depicted as staying in the bank while simultaneously being circulated?

[justgivemethetruth]

So what, the ongoing complaints about this are daft, as long as the loans are good and REGULATED, the system grows just fine, and the central bank prinits more money to go along with the increased value added to the world.

The problem happens when the loans made are fraulent, then money is funnelled to criminals who over time use their criminal ways and piles of money to corrupt the system - but the corruption is not from fractional reserve.

How else do you save or make loans?

[Bondol]

This presentation omits the double entry accounting system so ably explained by Link Knight below:-   
the idea is that the money (which with a loan is often as a cheque or electronic transfer) ends up in the car dealers bank. the car dealers bank keeps the $900, loans out $8100. this process has to happen at LEAST 10 times, with ALL the money ( no stashing it in a hidey spot in your house, no dropping coins in the drain ) for it to work. probably takes more than 10 times. but EVENTUALLY the WHOLE $10K will be in reserve and create an exrta $9K. fed res creates new cash, banks increase by You Tube presentation is only half YOU WANT TO UNDERSTAND THE MONETARY SYSTEM GO TO you will think its all smoke and caused the 2008 uncontrolled irresponsible people will buck the system. Bundling short term IOU into a long term IOU is bucking the system. Regulation will stop this. But Wall Street is at war with other financial centres and do not play by the Rules (unregulated)
 

[MegaPeterlustig]

Bitcoin fixes this. Wow. We all need Bitcoin!

[Kezman]

@islandbuoy4
Island boy wake up before it's too late, our time to unite is coming, you will be left behind if you keep this ignorant view of self preservation and make you blind, don't be scared to follow the path of corruption, for once you have seen the evil that lurks, you will know and understand where it lays and be able to identify with the love and unity that is rising globally then become free from the grip of uncertainty they have over you.

[islandbuoy]

but the entire BS slick propaganda campaign falls apart when the aLIEn gets introduced.

sorry but why introduce the aLIEn along with how the humans do business?

the THRIVE message is only as good as the weakest link...and the aLIEn spoils the entire message