Please Pass the Ponzi

If Federal Reserve chairman, Ben Bernanke really said these things....it's simply amazing.

It appears that Bernanke is calling for having "zero" money in reserve at the banks...instead of the fractional banking system that we have always had.

Laymans terms please??....OK....if you put $100 in a saving account at Wells Fargo, they don't hold your money in a vault. They make loans of your $100 to other folks to buy a car, charge them 10% interest and pay you 1% for letting your money sit at the bank. The bank makes 9% on your money...but of course they have the risk that the guy with the car runs away to Vegas and never pays them back.

But don't they have to keep some money in the vault to cover people who are making withdrawals? Yes they are supposed to. That's why it's called a "Fractional reserve" system. They are supposed to keep a certain amount (as set by the Federal Reserve) in the vault in case many depositors come in all at once for their money.....the bank will have plenty to pay out.

Now that could all be a thing of the past. The Chairman might now be saying we don't need to keep ANY money in the vault. In essence we can "float" the entire system and make it all up out of thin air. Isn't it bad enough already that 80% is all made from thin air.....won't 100% be a disaster waiting to bankrupt us all?

If there were no minimum reserve requirements, what kind of chaos would that lead to in our financial system? Not that we are operating with sound money now, but is the solution to have no restrictions at all? Of course not.

What in the world is Bernanke thinking?

But of course he is Time Magazine's "Person Of The Year", so shouldn't we all just shut up and trust his expertise?

Congressman Ron Paul has a quote in this article which rings very true....but of course most of the world believes Ron Paul is a quack to be made fun of on The Daly Show.

"The Federal Reserve in collaboration with the giant banks has created the greatest financial crisis the world has ever seen. The foolish notion that unlimited amounts of money and credit created out of thin air can provide sustainable economic growth has delivered this crisis to us. Instead of economic growth and stable prices, (The Fed) has given us a system of government and finance that now threatens the world financial and political institutions. Pursuing the same policy of excessive spending, debt expansion and monetary inflation can only compound the problems that prevent the required corrections. Doubling the money supply didn’t work, quadrupling it won’t work either. Buying up the bad debt of privileged institutions and dumping worthless assets on the American people is morally wrong and economically futile."

See it all here; http://finance.yahoo.com/tech-ticker/bernanke-wants-to-eliminate-reserve-requirements-completely-yftt_444354.html

If we read our Bibles we will see that God has a way of tearing down false idols....and laying low the people who worship those false gods.

Could God be setting the stage to reveal just how silly we have been to have "trust and faith" in a money system which has been created out of thin air? It would be ironic that many in this country don't believe in God because they can't see him....but they have 100% trust and faith in a financial system that is made of air. It's kind of funny when you think of it that way.