Fractional Reserve Banking

Fractional Resevere Banking created by the Federal Reserve, the creature from Jekel Island is destroying America.

From Freedom of Speech Blog:

"It began with banks creating debt simply based on I.O.Us. That is, someone buys a house, and promises to make a payment over a period of time. The central bank then creates money out of nothing. Voyla! Now suddenly it has a huge amount of cash on hand, since fractional banking kicks in and requires the banks to only maintain a 10% reserve - thus, any new loan immediately creates a huge amount of cash from thin air. The banks then use this cash to make loans to others, and the spiraling effect begins. Now, when many a borrowers begin to default, this is when the whole system begins to fall apart, as we have seen. It falls like a deck of cards as the banks no longer maintain the cash on hand necessary loan out to new people wanting loans, since they must now write down all those l.oans as bad debt, suddenly their balance sheet of actual cash on hand gets depleted, as all that virtual money vanishes! Thus, they no longer have money to lend out and their r.eserves are depleted. This is the secret they are hiding from you and don’t want you to know. Thus, they blame it all on the mortgage crisis. But what is really happening?"


-Ted Anderson has a book available, or click on title.
Anderson's book: The Creature from Jekel Island

Also:
http://moneycentral.msn.com/community/message/top.asp?Page=1088&s=1109