Fractional Reserve Banking

The creation of money is something that everyone has question were does it comes from. On the movie we saw last week zeitgeist they describe that the creation of money is pretty much a creation of a debt. In order to create more more the government goes to the FED and ask for a certain amount of money. After they ask for that certain amount of money, they have to give kind of an electronic cheque now a days it order for the FED to create de money, but they money that is created is debt money that the government now owes to the FED.

By this we can say that is there is more money there are more debts. Money=debts, there is also another way to create money. This way is for example having a certain amount of money like saying 10 dollars, you put this ten dollars in a bank in order to be able to be in de bank you have you leave the ten percent in the bank, but you can take out the rest. You can ask for a loan, but this bank gives you the money but with a condition that you have to pay interest. In order for pay they interests for this bank people now go to another bank which has lower interest range in order for you to pay and then it goes on and on and on. So money equals debts, so people o the country are always going to be in debt after they have money. 

Photo Credit: Cartoon Stock

MLA Citations:

"ZEITGEIST: ADDENDUM | 2008 (HD)." YouTube. YouTube, 28 Dec. 2012. Web. 04 Apr. 2014. <https://www.youtube.com/watch?v=HbvCxMfcKv4>.