ePAROL - Economic News and Views

Required Reserves Down

In December 1996, Required Reserves were $48,935 million. Today, ten years later, and with twice as much loans and twice as much deposits in the banks, Required Reserves are only $44,139 million, down about five billion bucks!

This means that every dime of debt and money created by the banks for the last ten years was literally created out of thin air, as there is no fractional-reserve backing (in cash) as a rainy-day fund for one thin dime's worth of the doubling of loans created, or the liability created by doubling of deposits! Zero reserves! In fact, reserves are about 10% less than they were ten years ago!

-- Richard Daughty, Mogambo Guru

Source: http://www.321gold.com/editorials/daughty/daughty070506.html

posted by G @ 3:32 PM