Unshackling from #GovernmentSupremacist Economic Slavery
The Money Mirage: How Fractional Reserve Banking Undermines Economic Freedom
The Money Mirage: How Fractional Reserve Banking Undermines Economic Freedom
Throughout the world, and especially in America, a quiet but profound threat looms over our economic freedom: the unchecked power of fractional reserve banking, amplified by the Federal Reserve’s decision to eliminate reserve requirements on March 26, 2020. This system, rooted in the fiat currency regime of central banking, creates money out of thin air, fuels inflation, and entangles our economy in a web of debt. From the perspective of those who cherish lower taxes, limited government, and personal liberty, it’s time to expose the flaws of this system and champion the principles of Free Market economics, a philosophy that trusts individuals and markets over bureaucrats and printing presses.
The Mechanics of a Flawed System
Fractional reserve banking is the engine of modern central banking, allowing banks to lend far more than they hold in deposits. Since 2020, with the Federal Reserve’s zero reserve requirement, banks face no obligation to keep any portion of your savings on hand. Instead, they can lend every dollar, and then some, creating new money with every loan. Here’s how it works: when you deposit $100 in your bank, that money doesn’t sit in a vault. The bank lends it out, say to a borrower who deposits it in another bank, which then lends it again. Through this cycle, your $100 can balloon into thousands in the money supply, all without a single new dollar being printed. This process, which critics rightly call “money out of thin air,” is detached from…