Controversial Characteristics of Fractional Reserve Banking

US Dollar

Chances are, if everyone at your bank decided to withdraw the entirety of each of their bank accounts, the bank would not have enough money at its disposal to meet the demand. This is because banks commonly operate under a fractional reserve banking system. In other words, the bank uses your money however it wants, banking (ahem) on the fact that its account holders won’t protest. Unfair? It sure sounds like it. Stealing? The banks prefer to call it “borrowing.”

What Is Fractional Reserve Banking?

Many people believe that when they deposit money into a bank, the bank keeps all of their money on hand, in a vault, in cash. But this isn’t the way most banks work. According to Investopedia.com, fractional reserve banking refers to a system where banks only back a fraction of bank deposits with actual cash on-hand, available for immediate withdrawal.

This means only a fraction of the money you deposit into your account is required to be available for withdrawal at any given time. For most banks, that fraction is a mere 10 percent of your deposit. So, instead of putting $100 into the vault when you deposit a $100 check, only $10 goes in. That $10 is known as “reserves.”

Surprisingly, many banks are not required to even keep 10 percent on hand — and some aren’t required to keep any reserves at all. Any bank with less than $15.2 million in assets is exempt from keeping any reserves, and those with assets between $15.2 million and $110.2 million are only required to keep 3 percent. 

There is an incentive, though, for your bank to keep more of your money in the vault: The Federal Reserve pays out interest on all reserves and excess reserves. The interest is called IOR (“Interest On Reserves”) or IOER (“Interest On Excess Reserves”), and since 2009, it pays out 0.25% at an annual rate.

The Money Mafia with Paul Hellyer

Is Fractional Reserve Lending a Game of Musical Chairs?

If only a tiny portion of your money is available after you deposit it, then what does the bank do with the rest of it? Much of it is given to other people, in the form of loans.

Simply, banks lend money that they don’t have. They use your money and lend it to someone else, in the hopes that you don’t ask for your money back at the same time that all their other customers ask for theirs. Many consider this to be a fraudulent way to do business, because it would be unheard of to do this at a personal level. It is considered fraud in most states for someone to write a check when they know their checking account does not have sufficient funds to cover the amount. But why isn’t it fraud for a bank to write a loan when payees do have sufficient funds in their accounts to back that loan? 

Most banks, even if they are required to have 10 percent reserves on hand, won’t necessarily have it available for you to use — because they’re already lending it out. And so, theoretically, if all of a bank’s customers asked for 10 percent of their account balances, the bank wouldn’t be able to pay that money either. There’s even a term for it — “a run on the bank,” which sounds more like the bank was played a bad card when it’s actually the bank customers who are denied their money. 

In essence, if too many customers made a run on the bank, the bank’s attitude would be, “Sorry, but we lent your money to that person over there, and we don’t have it to give back to you.”

In Defense of Fractional Reserve Banking?

Fractional reserve banking is often defended by the argument that the system is the very nature of banks. To quote Forbes, “It’s certainly true that banks could maintain 100% of funds deposited, but if so, they wouldn’t be banks. Instead, they’d be warehouses for money, and those warehouses would charge depositors a fee for the right to deposit with them. Basically money saved would decline day after day and year after year; essentially compound interest in the reverse. Banks would routinely ‘break the buck.’”

Forbes goes on to say that even though a bank may not have enough cash on hand to pay out a demand, they can borrow the amount from another bank. And if that option falls through, the Federal Reserve is there as a last resort. 

But the bottom line, for those in favor of fractional reserve banking, is that banking is a business, and so it functions through interest — and that interest is garnered through borrowing and lending money from one party to another. Perhaps the system is imperfect, especially if it experiences bank runs, but such circumstances are considered rare though its a risk most customers are unaware of.

More likely than not, barring any errors made by a teller, your money will be safe in your banking account, ready for you to withdraw as you please. But if you are concerned about an impending national crisis, perhaps you’ll want to take pre-emptive measures by closing your account, cutting a slit in your mattress, and stuffing all your dollar bills inside (preferably in small bills, so that you don’t need to exchange the big ones for bite-sized cash somewhere along the line).

Of course, financial experts would say that this would be an imprudent way to handle your money, and you’d only be hurting yourself — especially in the event of a natural disaster or a robbery. Plus, how else would they be able to gamble with your money and generate exorbitant profits for themselves if they weren’t keeping it “safe” for you. 

Inner Workings of the Federal Reserve
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Mass Media Mind Control

I have had wide and varied interests since a very young age and have loved learning all of my life. Simply, I believe life should be lived as a great adventure of growth and learning in every way. In science, my interests started in crystallography and minerals and progressed through the several branches of science into politics, philosophy, religion and all things esoteric.

What is Mind Control?

In the late 1980s, the most interesting research I began exploring was on mind effects or, more popularly, mind control. My interest grew out of the misuses of the information released in the Church Committee hearings of the 1970s dealing with the CIA programs in this area. At the same time, the positive possibilities for these new technologies were also exciting. Stimulating optimum human performance, accelerated learning, meditation, relaxation, and focus could all be improved. In fact, even so-called altered states could be enhanced or even stimulated. The most fascinating possibilities, however, were even more startling.

The idea that perhaps we could stimulate what is now referred to in some literature as “anomalous human capability” or, in the past referred to as ESP or extrasensory perceptions, may be possible.

In fact, this may be the next evolution of humans on earth as many of us are acknowledging and science is proving.

Control of the Mind and Body

The predominant brain wave frequencies indicate the kind of activity taking place in the brain. There are four basic groups of brain wave frequencies that are associated with most mental activity. The first, beta waves, (13-35 Hertz or pulses per second) are associated with normal activity. The high end of this range is associated with stress or agitated states that can impair thinking and reasoning skills. The second group, alpha waves (8-12 Hertz), can indicate more relaxation. Alpha frequencies are ideal for learning and focused life form energy. The third, theta waves (4-7 Hertz), indicate mental imagery, access to memories and internal mental focus. This state is often associated with young children, behavioral modification and sleep/dream states. The last, ultra slow, delta waves (.5-3 Hertz), are found when a person is in deep sleep.

The general rule is that the brain’s predominant wave frequency will be lowest, in terms of pulses per second, when relaxed, and highest when people are most alert or agitated.

What is Entrainment?

External stimulation of the brain by electromagnetic means can cause the brain to be entrained or locked into phase with an external signal generator. Predominant brain waves can be driven or pushed into new frequency patterns by external stimulation. In other words, the external signal driver or impulse generator entrains the brain, overriding the normal frequencies, and causing changes in the brain waves. Changes in brain waves cause changes in brain chemistry; which then cause changes in brain outputs in the form of thoughts, emotions or physical condition.

As you are driven, so you arrive – brain manipulation can be either beneficial or detrimental to the individual being impacted depending on the level of knowledge or the intentions of the person controlling the technology.

Is it Possible to Train Consciousness?

Consciousness training is also a big theme in cults, religious organizations, and others pursuing the “new age.” Science has now gained a greater understanding of how the mind and brain work so that what used to take years, or even decades, to achieve, can now be mastered in weeks, days or even minutes. For instance, in 1996 a method and apparatus for the use in achieving alpha and theta brainwave states and effecting positive emotional states in humans were developed.

Two years later another patent was issued which could create desired consciousness states: In the training of an individual to replicate such states of consciousness without further audio stimulation, such states may be transferred from one human being to another through the imposition of one person’s EEG, superimposed on desired stereo signals and onto another individual, by inducement of a binaural beat phenomenon.

Is Thought Transference Possible?

This is interesting in that it speaks to the ideas alluded to earlier by the military in changing the memory of a person by imposing computer-manipulated signals which would integrate with the normal memory of a person. The possibility of abuse is obvious and the opportunity for personal advancement is also great.

Consider the possibility of gaining education by the transfer of data directly into the human brain by these new methods rather than the standard methods of learning. A serious consideration in developing these types of memory transfer systems will be the fact that they bypass normal intellectual filters – they are deposited into the brain as fact, without question or careful consideration. What happens when new information conflicts with existing information? Would it be possible to include hidden information meant to unduly influence things like religious beliefs, politics or consumption of goods and services or politics?

Ethical Questions Abound

The possibilities are immense and the ethical and moral questions surrounding these matters equally large. We can no longer avoid the debate; in fact, the debate is lagging far behind the scientific advancements. In the interim, there are some simple things we could all do to enhance our own, or our children’s, learning capacity by applying simple and available knowledge. For instance: “researchers at the Center for the Neurobiology of Learning and Memory at University of California, Irvine, have determined that 10 minutes of listening to a Mozart piano sonata raised the measurable IQ of college students by up to nine points.” This is a simple thing of great use to anyone seeking self- improvement as an example.

There are several articles and materials that speak to the various ways that these technologies can be applied and used beyond the scope of this article. Let’s get to the media applications.

The Use of Media

Radio, TV, the Internet, the power grid, cell systems or any other electromagnetic carrier can be used to carry a signal that will influence the behaviors of most people in close proximity to the signal. What such signals can do is cause a person, for instance, to drop into a light altered state. Like when people come home from work, sit in front of the TV and watch the nightly news feed. Within a few moments someone begins saying to you, “honey, dinners ready.” They hear nothing… they are no longer watching the “programming;” they are being programmed with the latest values, beliefs, and ideas being pressed into the consciousness of most people through media.

By oscillating a signal in a certain way, emotional states can easily be reformed so that the reaction to the advertising, political propaganda or “news” is as predicted by those generating it across the broad population as intended by them.

In other words, it is about control and manipulation. It is really very simple. People in psychology understand the Frequency Following Response (FFR). When applied to advertise or any other media, it is incredibly compelling.

Refined Control Tactics

Much more can be done with this technology in terms of the information density that can be sent in on such carriers. The objective of many military planners is to be able to even transfer thought and memory sets. These kinds of technology when applied to media particularly when coupled with mass surveillance of the population this allows those in control of such technologies to have profound effects on a highly individualized basis. This delivery system can be tailored to an individual person to have specific influences on that individual personality type and subtype.

The predictability of behavior for the target of the technology is so refined that is better at predicting an individual’s future behavior they could about themselves. Think about this for a moment.

Perpetual Worry as a Means of Imprisonment

Yet the simplest mechanism for inhibiting higher mind functions, peak performance, and anomalous human capabilities is to just keep people in a constant state of worry, agitation, and fear. Sound familiar? In these states, it is not possible to reach a higher state of awareness. These emotional states do not allow the brain to operate in a manner that will allow this possibility. Fear is the adversary and is at the root of the misuses of these technologies. The government fears an enlightened population where the light of truth shines within its darkest corners. An awakened population cannot be resisted by structures based on fear.

The Next Evolution of Humankind

After 40 years of research in the open literature and opportunities to meet and spend the time needed with the best bio-physicists in the world has allowed me insight into this area. During my time with the Lay Institute in Dallas, I put together a private conference on mind effects with some of the best people in the world. The surprise was not a story about controlling people and manipulating populations, although everyone agreed this was the case in the 21st century in so many ways. The biggest insight had to do with the next evolution of humankind.

Voiced first by the late sister, Dr. Rosalie Bertell, in her presentation about her belief that in what man was trying to create in electronics were already latent in every person waiting to be awakened. The theme was repeated in every presentation that explored the possibilities of reclaiming our birthright in terms of what we are as human beings and the endless possibilities that occur when we begin to recognize ourselves.

As we evolve and grow within the framework of this reality we also are beginning to recognize in the science of consciousness and what we know…we are more than we think, and we are beyond what we know. Together we change the world by fearlessly knowing that we each have all that we need to engage the world and are not alone in it. Our humanity is in fact our very salvation if we can recognize and alter our awareness.

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