On the tenth day of Christmas,
The Bakery gave to me:
Conspiracy Fact # 2: Fractional Banking
Fractional reserve banking may sound boring, and you may say, Redshield, what is a lady’s man like yourself doing writing about such square topics? My answer would be this: think again conspiracy comrades. Fractional reserve banking refers to the shift in recent centuries towards no longer having an actual gold reserve that corresponds to the money supply. Instead only a ‘fractional’ amount of what you deposit is kept in the bank, the rest is loaned to other people. This allows enormous amounts of wealth to be created and an enormous amount of growth to occur. However, it is also partially what causes financial crises such as the one we’re currently experiencing, as playing around with derivatives can cause debt bubbles and toxic assets etc. Alongside the rise of fractional reserve banking has come the rise of centralised banks such as the Federal reserve and the Bank of England.
So, in light of this fascinating and powerful short speech, I give you Money Masters, a 90’s masterpiece of Conspiracy film. Just don’t say anything about the bad graphics…