I started out researching banking in Canada when I discovered that in other countries banks were leveraging their reserves when making loans. What I discovered was eeven more shocking – in Canada, since the early nineties, reserves are no longer required against loans being made.

I have little doubt that I’m not the only person in my neighborhood who assumed that banks loan money based on reserves they actually hold. That’s what we were taught in school.

And when bills are passed which repeal these protections, you can hear a pin drop during the silence.

What is the true role of central banks?
To
centralize power and to
concentrate wealth
To
enable inflation of the money supply and to
Manage its effects

See my blog at beyondmoney.wordpress.com