A Privatised Money Supply: Modern Banking and the Fractional Reserve System. Philosophy Lovers! Click Here A Privatised Money Supply Modern Banking and the Fractional Reserve System [Figures and illustrations were current when written in 2002.] Do you know where the bank gets the $160,000 for your mortgage? How did the banks gain this oppressive power of charging interest on mere computer entries? Now that our money supply has been essentially privatized, how can we free ourselves from this sly form of economic tyranny? 1) A government can lend interest-free money into existence by borrowing from its own bank, The BoC, or, it can borrow interest-bearing money into existence by borrowing from privately owned banks. 2) A government that borrows with interest from private banks, when it can create its own interest-free money, is a government of idiots or thieves. Unfortunately, the human mind finds it easier to believe a lie it’s heard a hundred times before than to believe a truth it’s hearing for the first time.
Thomas Jefferson William Lyon Mackenzie King. Sixteenth Amendment to the United States Constitution. The Sixteenth Amendment (Amendment XVI) to the United States Constitution allows the Congress to levy an income tax without apportioning it among the states or basing it on the United States Census. This amendment exempted income taxes from the constitutional requirements regarding direct taxes, after income taxes on rents, dividends, and interest were ruled to be direct taxes in the court case of Pollock v. Farmers' Loan & Trust Co. (1895).
The amendment was adopted on February 3, 1913. Text The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. Other Constitutional provisions regarding taxes Article I, Section 2, Clause 3: Representatives and direct taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers...[1] Article I, Section 8, Clause 1: Article I, Section 9, Clause 4: Adoption. Fractional reserve banking. Fractional-reserve banking is the practice whereby a bank holds reserves in an amount equal to only a portion of the amount of its customers' deposits to satisfy potential demands for withdrawals. Reserves are held at the bank as currency, or as deposits reflected in the bank's accounts at the central bank. Because bank deposits are usually considered money in their own right, fractional-reserve banking permits the money supply to grow to a multiple (called the money multiplier) of the underlying reserves of base money originally created by the central bank.[1][2] Fractional-reserve banking is the current form of banking in all countries worldwide.[3] History[edit] Fractional-reserve banking predates the existence of governmental monetary authorities and originated many centuries ago in bankers' realization that generally not all depositors demand payment at the same time.[4] How it works[edit] In most legal systems, a bank deposit is not a bailment.
Economic function[edit] Formula[edit] How the GOP Became the Party of the Rich | Politics News. The nation is still recovering from a crushing recession that sent unemployment hovering above nine percent for two straight years. The president, mindful of soaring deficits, is pushing bold action to shore up the nation's balance sheet. Cloaking himself in the language of class warfare, he calls on a hostile Congress to end wasteful tax breaks for the rich. "We're going to close the unproductive tax loopholes that allow some of the truly wealthy to avoid paying their fair share," he thunders to a crowd in Georgia. Such tax loopholes, he adds, "sometimes made it possible for millionaires to pay nothing, while a bus driver was paying 10 percent of his salary – and that's crazy. " Preacherlike, the president draws the crowd into a call-and-response.
The crowd, sounding every bit like the protesters from Occupy Wall Street, roars back: "MORE! " The year was 1985. Today's Republican Party may revere Reagan as the patron saint of low taxation. Then something strange happened. Why Isn't Wall Street in Jail? | Politics News. Federal Reserve Act. Federal Reserve The Federal Reserve Act (ch. 6, 38 Stat. 251, enacted December 23, 1913, 12 U.S.C. ch. 3) is an Act of Congress that created and set up the Federal Reserve System, the central banking system of the United States of America, and granted it the legal authority to issue Federal Reserve Notes, now commonly known as the U.S. Dollar, and Federal Reserve Bank Notes as legal tender. The Act was signed into law by President Woodrow Wilson.
The Act[edit] The Federal Reserve Act created a system of private and public entities; there were to be at least eight, and no more than 12, private regional Federal Reserve banks. Twelve were established, and each had various branches, a board of directors, and district boundaries. The Federal Reserve Board, consisting of seven members, was created as the governing body of the Fed.
With the passing of the Federal Reserve Act, Congress required that all nationally chartered banks become members of the Federal Reserve System. Background[edit] Glass–Steagall Act. The term Glass–Steagall Act usually refers to four provisions of the U.S. Banking Act of 1933 that limited commercial bank securities activities and affiliations within commercial banks and securities firms.[1] Congressional efforts to “repeal the Glass–Steagall Act” referred to those four provisions (and then usually to only the two provisions that restricted affiliations between commercial banks and securities firms).[2] Those efforts culminated in the 1999 Gramm–Leach–Bliley Act (GLBA), which repealed the two provisions restricting affiliations between banks and securities firms.[3] [edit] The sponsors of both the Banking Act of 1933 and the Glass-Steagall Act of 1932 were southern Democrats: Senator Carter Glass of Virginia (who in 1932 had been in the House, Secretary of the Treasury, or in the Senate, for the preceding 30 years), and Representative Henry B.
Steagall of Alabama (who had been in the House for the preceding 17 years). Legislative history of the Glass–Steagall Act[edit]