You think the Fed is the only institution that can do FRB?
Fractional Reserve Banking increases the amount of dollars in the system without actually printing money
So what is it?
So a handful of people can up the PAR numbers
PAR numbers?
(amount of money a bank can lend in relation to the real assets they have on hand)
Do you mean reserve requirements?
FRB is the practice of banking that allows a bank to lend out nearly all of its liquid assets. Which is OK IF that would be the extent of the ordeal...
However when you add in the fudging allowed on PAR numbers (PAR is the valuation of financial assets)
For instance bank stocks used to valued at .01 dollars per share for the purposes of determining lending ability. While Corporate bonds were valued at 1000 each.
BUT the FED is allowing some banks to fudge those par numbers, allowing them to literally MAKE money with a few accounting tricks.
Its not good. Am I saying we should scrap our present system? No. I am saying our present system is much like the situation P.J. O'Rourke described when he talked about giving money and power to Government, was like giving liquor and car keys to teenage boys.
Giving that sort of unrestricted money making (expansion) capabilities to a handful of unelected people is madness. Especially since they do so in the shadows.