David Icke

Whilst I don't subscribe to all of David Icke's theories on Life the Universe and Everything, I have not come across anyone who can describe the mechanics of fractional reserve banking as well as David can. Now with Ben Bernanke floating the idea of zero reserve banking even the “fractional” component of the fraud maybe history.

Interview with David Icke

Ben Bernanke's zero reserve banking


Extract from David Icke's interview with the Daily Bell.com:

David Icke: The economic system that we have today is absolutely grotesque. Again people don't realize what the economic system is. We lend people money that doesn't even exist and charge them interest on it. It's just figures on a screen. And they lend you these figures on a screen and you must pay interest back on money that has never, does not or will never exist! This is what the banking system is.
Banks are allowed to lend money at least ten times on what they have on deposits – it's called fractional reserve lending. Which means when you go into a bank and ask for $50,000 loan, they don't give you $50,000, they don't move precious metal anywhere or print any money, they just type into your account $50,000. And from that moment you are paying them back $50,000 plus interest that doesn't exist, it's just been conjured out of nowhere on a screen.
Every time you put a dollar in the bank, you are giving the bank the right to lend at least $10 it doesn't have and charge interest on it. There is never ever anywhere near enough money in circulation to pay back all the loans and all the interest on the loans outstanding. It's built in by design. So that means people are losing their homes, losing their businesses, losing their land, it's built into the system.
It has to happen because there is not enough money in circulation to pay back the interest and the loans outstanding. You pay Peter to pay Paul while there is an economic expansion going on but as soon as a depression comes in, then the amount of money in circulation is reduced by the banks refusing to issue credit. Then suddenly the amount of money in circulation is even less, far less that is necessary to pay all the outstanding principal and interest on the loans, so therefore more people lose their homes and their businesses in very large numbers.