Sunday, 13 May 2012
Frb enables borrowers to steal from the population
The problem with fractional reserve banking is that when a loan is taken out from a bank this results in inflation which is a form of theft. Purchasing power is extracted from the rest of the money supply by a combination of the bank and the borrowing customer. Together they have stolen from the economy by (means of) inflation. It is theft not only by the bank but by a combination of the bank and the customer. In fact it is the customer who plays the dominant role since the bank itself only collects the interest. Borrowers steal from the rest of the population with the help of the bank.
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