Fractional Reserve

In the documentary ZEITGEIST, we saw how the money in the United States is created. The money is created from debts, if there is no debt there is no money. The government asks for money to the federal reserve, the federal reserve gives them the paper stamped ans the government designates the value and starts circulating it. The money of the country is evaluated in the amount of gold a country has. The fractional reserve banking is a system where banks keep a percentage of the money and lend the rest to a company or individual and charge them an interest in order to gain money. The amount of money that is printed and in circulation in the US is only 3 percent of all the money that they have in circulation. The number we see of money in an account is not in the bank, that money is being lend to others. The money in does not exist, it is just a number and we never own it, it is just a loan.  

 The bank must hold an amount of cash known as a "reserve requirement" and this is controlled by a central bank, and loan out to another person so the bank by charging interest on loans of that money.  

    Photo credits: Alejandro Giraldo S.