The fractional reserve banking system is causing banks to be broke because they are lending money they do not actually have, which is a criminal scandal that has gone on for too long. The problem begins with politics and central banks working together – often engaging in counterfeiting through quantitative easing, which would result in prison time for an ordinary person. Central banks also repress interest rates, and taxpayers are often left with the bill when banks fail due to their own incompetence. Until bankers, including central bankers and politicians, are held accountable and sent to prison, this cycle of theft will continue.
—
The Broken Banking System
All the banks are broke, and they have been for some time now. The reason for this is because of the fractional reserve banking system that is employed by banks. This system allows banks to lend out money that they do not actually have. It is a criminal scandal that has gone on for far too long.
The Root of the Problem
It all starts with politics and central banks, which are part of the same political system. The issue is compounded by the fact that governments and central banks use quantitative easing to artificially print money, a practice that would land any ordinary person in prison for a very long time. Central banks also manipulate interest rates, which represses the actual cost of money.
Deposits Guarantees – A False Sense of Security
In addition to all of this, we talk loosely and cavalierly about deposit guarantees. When banks go broke due to their own incompetence, it is the taxpayer who is forced to pick up the tab. This is nothing short of theft from the taxpayers who are already struggling to keep their heads above water.
The Need for Accountability
It is high time that we start holding the bankers, central bankers, and politicians accountable for their actions. Until we start sending them to prison for their outrageous behavior, this scandalous state of affairs will continue. The broken banking system must be fixed, and the only way to do that is by demanding change and holding those in power accountable.
