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Old 10-13-2010, 05:03 PM  
woj
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Quote:
Originally Posted by onwebcam View Post
The Federal Reserve system has only been in place since 1913. And since then the American people have been robbed of their wealth. But yes it has been attempted since at least the bible days.

The note is the agreement between the two original parties. I can produce a copy of any ducument you want, what about you? Must be original. If they can't produce the original then the contract is null and void and they have no claim.
Having a "central bank" (the Federal Reserve) has nothing to do with fractional reserve... banks would operate in a similar way whether a "central bank" exists or not...

wikipedia explains how fractional reserve banking works quite well I think:
"Prior to the 1800s, savers looking to keep their valuables in safekeeping depositories deposited gold coins and silver coins at goldsmiths, receiving in turn a note for their deposit (see Bank of Amsterdam). Once these notes became a trusted medium of exchange an early form of paper money was born, in the form of the goldsmiths' notes.[3]

As the notes were used directly in trade, the goldsmiths observed that people would not usually redeem all their notes at the same time, and they saw the opportunity to invest their coin reserves in interest-bearing loans and bills. This generated income for the goldsmiths but left them with more notes on issue than reserves with which to pay them. A process was started that altered the role of the goldsmiths from passive guardians of bullion, charging fees for safe storage, to interest-paying and interest-earning banks. Thus fractional-reserve banking was born."


So you are saying that's it's ok to weasel out of a contract because of some technicality like that?
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Last edited by woj; 10-13-2010 at 05:09 PM..
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