fractional_banking001009.jpg fractional_banking001008.jpg
fractional_banking001005.jpg fractional_banking001004.jpg fractional_banking001002.jpg fractional_banking001001.jpg
Fractional Banking, the more people that are educated, the sooner it'll be improved
Fractional banking techniques create new wealth by issuing new money which is then used as capital for loans and mortgages. Banks borrow money to lend out. Fractional banking is having much more money lent out to customers than it holds to pay back the initial money first borrowed by the bank. The money an institution has available to lend, or that is all ready lent out, is a multiple of what it keeps ready and holds to pay back from where the money was first borrowed from. Banks hold capital as a fraction of the money it owes back and as a fraction of the money it has all ready lent out to customers. The capital held by banks is repeatedly used as security to borrow more money to lend.
Fractional Banking Methods
Fractional banking methods are used to fluctuate mortgage availability to direct house prices upward. This system now needs greater control to benefit the domestic economy at the detriment of bank profits. Bank profits from ever increasing interest payments should not be an automatic prerequisite to mortgage lending. A framework is required to promote better national economics for customer benefit. The financial banking sector needs reform diminishing banking control of the economy. This reform has been required since the economic depression that happened in the 1930's and has been needed for up to three centuries.
Fractional Banking Facts
Bank profits ignore the aspects and impacts of increases in interest payments of loans in the domestic economy. This survival of the fittest was acceptable prior to civilisations developing a stoical approach, it is no longer appropriate or applicable as the majority of people have a lower standard of living because of it. Bank profits are not necessary for economic growth. Loans and mortgage lending can still be achieved using fractional banking to benefit the domestic economy. New money is created when a simple book entry is written in, of any amount.
Successful Economic Cycle
Fractional banking makes the cycle of economic success and the subsequent following recession to happen. The coinciding cycle of trust in the system enables the extraction of the most amount of money from the economy in upward times and allows the banks to gain the most amount of property as possible from people during times of recession.
Business Lending
Lending to businesses to increase employment is possible without banks losing their profits because fractional banking techniques can be used to absorb losses. Business lending can be used primarily to promote economic growth and employment. Central banks that issue and print new money for bank lending will absorb losses from unsuccessful domestic bank loans because the money had not previously existed. Paying interest upon loans from money that had not been there prior to lending will extend a recession indefinitely.
What Is Their Worth
The banks aren't able to establish their genuine clear market value and profit worthiness because they control the system. Moving money more efficiently does not create enterprise. Governments appear to be against business enterprise by not forcing banks to serve the benefit of the domestic economy. The authorities are required to facilitate enterprise and are evading this by not controlling and guiding banks to optimise business credit.
Who Owns The Country
The citizens own the country and not the authorities or the financial bodies. House price bubbles are enabled by the central banks when they are required to prevent this happening. At the behest of the banks, the central banks unwittingly issue and release out unquarantined money through fractional banking mechanisms. Fractional banking new money is borrowed by the banks to lend out by a factor of nine. Banks lend out nine times more money than they possess, they don't have the money for loans, they borrow it to lend.
Fractional Banking Fact
The extra funds required to service increasing housing costs is supplied by banks lending out money that up and until previously had not existed. The money offered as credit allowing morgages to be available for increased house prices did not exist prior to it being borrowed. There are many people who are in debt to the banks now presently, of money that was not in the possesion of the banks previously, because it did not exist before it was borrowed.
European Central Bank
The European Central Bank issues new money to the domestic banking sector with fractional banking to enable mortgage lending to pay for increased house prices. This money did not exist before it is issued for borrowing. New money is issued and introduced to the financial system to service increasing house prices. House prices need to be controlled by the market forces based upon available salaries and income along with any deposit capital, it should not be controlled by the ability of the banks to issue and print new money for mortgage lending that is reflection of increases in house prices. Increases in house prices must be a reflection of salaries and income levels.
twitter facebook cliffjohn