Oh, dear Lord, he falls hard for this nonsense.
And that’s why many would go even further than this. There’s a growing
campaign to strip banks of their right to create credit (and then charge
interest on it), and to return that right to central banks. Few people realise
that 97% of all money in circulation (including “credit”) is effectively
“created out of thin air” by banks in the form of loans to people and
companies. John Bunzl, one of today’s leading campaigners for this
radical shift, insists on spelling out exactly what this means as it does
seem quite extraordinary to most people, once explained, that we’ve
put up with this situation for quite so long:
Bunzl accurately describes this as “the world’s largest pyramid scheme”
which all governments have allowed themselves to get caught up in having
historically permitted private banks to take over the right to create credit
– a right which should always have been reserved for governments alone.
Putting an end to “fractional reserve banking” (in effect, insisting that banks
would only be able to make loans if they were 100% backed by deposits)
would obviously have a massive impact on the profi tability of those banks
– but might that not be a very reasonable price to pay for a much more
equitable and stable system?
No, it wouldn\’t. You\’ve completely misunderstood fractional reserve banking. You\’ve been gulled by a piece of rampant stupidity. Please go and read Adam Smith on banking. He got it right over 200 years ago. About time you got around to reading him./