by Mish Shedlock, Mish Talk:
If you think we have fractional reserve banking, we don’t. We have zero reserve banking.
The above image from Fed Policy Tools.
“This action eliminated reserve requirements for all depository institutions.”
The Fed openly encouraged and sought both inflation and speculation. It got what it wanted and then some.
TRUTH LIVES on at https://sgtreport.tv/
Now the Fed has no idea how to fix the mess it created.
Fictional Reserve Banking
The number of people defending fictional reserve banking caught me by surprise. Here is a Tweet chain worth exploring.
Fractional reserve banking is THE engine of entrepreneurialism and productive societal risk-taking.
It is directly responsible for the standard of living, technology and medical care you enjoy today. https://t.co/CEuwsfQRjw
— Ben Hunt (@EpsilonTheory) March 19, 2023