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Are you even reading what I am typing? Ok, one more time. Debt based fiat currency will eventually collapse the global financial system. I will talk about what that means in a moment but first, here is WHY it will happen. When banks possess the government granted privilege to create money this process extracts a tribute from the economy at large. Through fractional reserve banking they CREATE money when they grant loans. What they create, though, is the principle ONLY. Therefore the interest paid by the borrower is a net drain on the local, state, federal and ultimately global economy. This interest tribute is paid to the banks simply because they create money, for no other reason. So not only is interest paid on loans a net drain on the economy, it is also UNEARNED. The ultimate, tragic result of this will be global economic collapse, as the interest burden eventually exceeds the productive capability of the economy. With this collapse you will see massive defaults on existing debt obligations which will bring with them a huge "land grab" as INVESTORS collect their collateral. This is what Thomas Jefferson was talking about when he said; "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." -Thomas Jefferson

Through fractional reserve banking they CREATE money when they grant loans.

You'll probably have a stroke when you learn that only checking accounts require reserves these days.

What they create, though, is the principle ONLY. Therefore the interest paid by the borrower is a net drain on the local, state, federal and ultimately global economy. This interest tribute is paid to the banks simply because they create money, for no other reason. So not only is interest paid on loans a net drain on the economy, it is also UNEARNED.

What about the interest banks pay to depositors? How about the risk they assume for defaults? What about their expenses for computers, networks, buildings, security, electricity, maintenance, and employees? If you think banks are making money for nothing, then buy stock in them you conspiracy minded kook ;-)

When banks possess the government granted privilege to create money this process extracts a tribute from the economy at large. Through fractional reserve banking they CREATE money when they grant loans.

If I deposit $1000 into the bank, how much can the bank loan out based on my deposit? How much money can they "CREATE"?