From central bank governors, to the IMF, to brilliant contrarian economists, to well-intentioned activist groups, there is a growing chorus of voices calling for an end to fractional reserve banking … or, more correctly, fractional reserve lending.
These voices are of those suffering from myopia.
Their complaint is this; that the root cause of the world’s ongoing economic ills is that, due to fractional reserve lending, private banks have been permitted to create too much “money” (debt) out of nothing, and lend it for profit.
Alas, they are only seeing what is immediately in front of their eyes.
The creation of “money” out of nothing, is only a lever.
Usury (ie, net interest income), is what is being lever-aged.
Consider the words of the National Australia Bank:
How Banks Work
…Their profit is the difference between what they pay in interest on your deposits and what you pay them in interest for the loan they made you.
Creating money — debt — out of nothing, does not make profits for bankers.
Charging interest on money (debt) created out of nothing, is what makes profits for bankers.
For those with full vision, the Big Picture is clear.
Every “solution” to the economic crisis that does not focus on the real problem — usury — is a short-sighted, and inevitably short-lived, non-solution.
4,500 years of recorded economic history prove it so.