Interesting article on how banks are allowed to distribute money and keep an expanding money supply.
http://en.wikipedia.org/wiki/Fractional_reserve
This in essence is what drives inflation, allowing banks to only keep a fraction of their depositors money on call and the rest loaned out. It is a necessary evil to keep volumes of money available to drive the businesses. Still not something anyone ever really talks about or is that widely known.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment