John Steward of Jesus
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The fractional reserve banking fraud

May 17, 1980

The fraud involved in fractional reserve banking is that present dollars, future unsecured dollars (promises to pay), and future secured dollars with the banker’s guarantee (all with different time references from one day to thirty years or more) are, all of them, circulated on the same merit. The banker collects for himself the discount in the value (pay for risk plus interest for time) but the public must accept all these dollars as equal because it has no way to distinguish the one from the other. If each dollar were labeled, such as “a promise to pay one dollar in ten years,” then the public could discount the face value in its
commerce. The discount would likely be very high!

The fundamental problem is again one of deceit. Because the
typical individual has no way of knowing the nature of that with which he has dealings, he has no way to make a rational decision, The most good for all results when all men are able to make rational decisions in categories which are understood. The present monetary and banking system is a massive hoax which prevents human brains from being properly exercised.