Deposit insurance is only needed when money is created out of debt
through fractional reserve banking, and then that debt becomes the basis of more debt - based lending in a vicious cycle of deceit.
I'm simplifying greatly here: if more money is printed (or the money supply increases
through fractional reserve banking) and it is chasing the same amount of goods then prices will go up.
There is no limit as to how much Credit the banking system can create
through fractional reserve banking — other than the ability of the borrowers to pay interest on the money they have been lent.
Lending that same money
through fractional reserve banking is credit expansion.
You can borrow against the equity in your life insurance policy without any of the hassles associated with getting a loan
through a fractional reserve bank.
Not exact matches
That said, I love... just love... how you are going to increase liberty by * preventing * humans from engaging in
fractional reserve banking
through the establishment of a collective government to judge and imprison the purveyors.
Any person who creates or originates United States money by lending against deposits,
through so - called
fractional reserve banking, or by any other means, after the effective date shall be fined under title 18, United States Code, imprisoned for not more than 5 years, or both.
By utilizing the cash value in your permanent life insurance policy
through a mutually owned whole life insurance company, you are essentially bypassing the
fractional reserve banking system altogether.