Re: ever wonder why they called it "a one dollar bill"?

in 1980 the last vestige of old school banking was erased from the mandates of the federal reserve. after 1980 there was to be no more fractional banking as we know it.(if anyone actually knows what that means anyway)the requirement that there be a percentage of funds in reserves to bank obligations was waved. now, there doesn't have to be any percentage of money in a bank in order to lend more money out. in fact, the way the system is set up, bank obligations, that is, money that you have borrowed is counted as an asset. not a liability. and therefore as collateral for the bank to lend more money out. the risk to the bank? none. the fed will and has always come to the rescue(well of the large banks anyway) god, i could go on for hours. do yourself a favor. read the book. it will answer many questions and make you mad as hell at the same time. Tweet