Fractional Reserve Lending is a form which allows ALL banks and Credit Unions to create currency in their computer by lending others on interest. Every time banks and credit union sells a credit card , secure or insecure loan to borrowers they do create new currency in the market.
However, when it comes to paper or plastic bank currency note only central bank can print. But digitally all banks are allowed to create currency in the form of loan. So, it’s safe to say all the digital form of currency we are using today are “Credit”. For example: All credit card payment, Debit payment, Cheque payments, mobile banking payment and so on.
How banks are allowed to create digital currency ?
This is good question. And I think you must ask this question your local politician next time.
Actually this is fraud and most evil and sinful work by banks. Rather , country’s central bank allowing other banks to create currency on their computer as a form of credit.
Here is how banks create currency in the form of credit……
Let’s say you have physical paper $100 and you would like to deposit into your bank account. When you go to the bank and deposit to your bank account , your bank keeps that money and add $100 to your digital account with the help of computer. But when I go to the bank to borrow some money bank can lend me $90 on interest from the $100 you have deposited. So, bank creates a credit account for me and add $90 to my account or give me physical $90 cash. Banks are allow to keep $10 from your deposited cash in case you ask some of the cash you have deposited.
So, in the end total currency shows in both of our account $190. But you have deposited only $100. How , come it become $190?
This is call Fractional Reserve Lending. This is the way to creation of new currency. This is the fiction. Banks are creating currency like this since this modern monetary system created. This system is evil and destroying world’s economy.
Now, you should decide would you keep working for the same currency if banks can create from nothing ? Or would you buy God’s money which has intrinsic value and store your value in the money ? Gold and Silver are the God’s money and gold and silver are real money not currency.
Watch this video to understand how banks are fooling us everyday.