Browsing All posts tagged under »Fractional Reserve Banking«

Debt and deficits matter as much in the present as the future

August 13, 2011

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The Keynesian Paradigm states that, under conditions of lagging demand for goods, the state can run a budget deficit and borrow to create artificial temporary demand aimed at accelerating economic activity. This makes sense only under the confusion of public debt, which conceals half of the equation of a loan agreement. In reality, government borrowing […]

How fractional reserve banking destroys capitalism

September 12, 2010

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Banking capital is earned through success in entrepreneurial investment. Bankers are long-established capitalists who can pick out which entrepreneurs are most likely to succeed in the banker’s specialty. Modern banking does not rely on capital, but on unlimited government-backed credit, through which incompetent capitalists take over all capital in the economy and ruin it. In […]