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I am interested in this subject but due to natural lack of smarts and no education I can't for the life of me read the whole thing and grasp its import.

If you or any other smart person here wouldn't mind summarizing the main points, I'd appreciate it. Don't bother if you don't want to, I don't have any money anyway. Academic interest, and how it affects/will affect TIG. (Things In General.)

I didn't read it all, but basically, banks are allowed to lend money that they do not actually have. That is the reserve business.

Banks are only required to have a percentage of what they loan, but not all of it. In other words, you can borrow $100,00.00 from a bank that might only actually have $90,000.00 or even less on hand. That is the insurance stuff too somewhere.

The Fed can change that percentage based on events or current circumstances. If the Fed changes that percentage upward, banks have less to lend. If the Fed lowers the rate, banks have more to lend.

Gosh, I still have my finance management text book somewhere. I think I aced that course but it was a long time ago, and I definitely hated the subject.

The main points I could discern are:

-The U.S. Treasury prints money
-They "sell" it to the Federal Reserve, a quasi-public banking institution, in exchange for Treasury bills, which are the debt instrument of the United States Government
-The Federal Reserve buys and sells many Treasury bills on the open market daily in order to keep the bills at the target interest rate
-The Federal Reserve also sells Federal Reserve Notes (dollar bills) to other banks
-Banks do not have to have 100% of deposited money on hand; they have to hold some fraction (10% for most types of deposits) and can lend the rest to others
-Fractional reserves increase the money supply (by a factor of 1/reserve rate) by lending deposited funds out, which are then typically deposited in other banks by the borrower, which banks can then lend those deposited funds out, and so on
-This is all a secret conspiracy, and you should stock up on gold and move to your compound as soon as you can put on your tinfoil hat

Points 1-6 are readily learned from a college economics textbook, and are the foundations of the U.S. money and banking system. Point 7 is believed by moonbats who think the U.S. banking system is a plot by the Illuminati/UN/international Jewry/etc. to establish a one-world government, black helicopters and all.

If you or any other smart person here wouldn't mind summarizing the main points, I'd appreciate it. Don't bother if you don't want to, I don't have any money anyway. Academic interest, and how it affects/will affect TIG. (Things In General.)

Let me summarize it for you.

In 1948, my parents bought an 800 square foot house on half a lot for $2,500 in southern Los Angeles.

Today, that house would sell for $250,000. Same house, same half a lot, no improvements.

The difference is due mostly to 50 years of continuous "inflation". The article just explains how they do this, and how they use big words like "fractional reserve banking" to camouflage it, so that the citizens don't tar and feather the politicians and bankers responsible for it.