The Death Knells of Fractional Reserve Banking

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Posted by Cynic | Posted in Money, Politics | Posted on 29-03-2013

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The collapse is coming, and the signs are everywhere.

http://mises.org/daily/6394/Cyprus-and-the-Unraveling-of-FractionalReserve-Banking

The coils are unwinding, and people are getting cut.

 

Is it any wonder that Bitcoin is soaring?

The fiat system is in shambles, and the free market system is exploding.

 

 

 

 

 

 

 

Frackin’ Reserve! for Android

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Posted by Cynic | Posted in Awake, Banking, C#, Google, Logic, Mobile, Money, Philosophy, Politics, Software | Posted on 27-01-2013

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Frackin’ Reserve is now available for Android!

In an effort to try and help educate people about the inevitable mathematical fraud of fractional reserve banking, I’ve released an Android version. It’s 100% free. Pass it around, and let’s END THE FED!

Frackin’ Reserve lets you simulate what happens in the money cycle with fractional reserve banking. It demonstrates how banksters print money out of thin air and how that money very quickly mushrooms into massive quantities of debt.

Make sure to check the articles listed below as they fully explain the fraudulent nature of fractional reserve banking.

“Once a nation parts with the control of its credit, it matters not who makes the laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talks of the sovereignty of Parliament and of democracy is idle and futile.” — William Lyon MacKenzie King

GET FRACKIN’ RESERVE FOR ANDROID

You can find Frackin’ Reserve for Android in the Google Play store here:

https://play.google.com/store/apps/details?id=com.renegademinds.frackinreserve

GET THE SOURCE CODE

As with all other versions, I’ve made the full source code is available for free. There are notes in there to help you compile it as it requires some very minor tweaks to compile (you must have a strong name file).

DOWNLOAD: Frackin Reserve Android source code

However, in a massive departure from my norm, I did put Google ads in the version that you download from the Google Play store. (I pretty much never put any kind of advertising in my free software, and am generally not very fond of ads in my own software or web sites.) It takes a lot of time and effort, and I figure that if I want to keep up with some of this activism, I need to try and make some money from it in order to off-set the costs of me spending my time elsewhere trying to make a living. I do hope that people appreciate that I’m not trying to get rich or anything – just trying to pay bills. While I thoroughly enjoy this, it takes away from development time for other things that I need to put food on the table. (If you would like to help support Frackin’ Reserve, please consider having a look at my commercial audio software to help musicians learn new songs – Guitar & Drum Trainer.)

FRACKIN’ RESERVE FOR ANDROID SCREENSHOTS

Here are some screenshots on tablets and phones, with both older and newer versions of Android for the phone screenshots. Click to zoom on any of them.

MORE PLATFORMS & INFORMATION

For versions for other platforms and articles on fractional reserve banking, please see below.

Windows: Frackin’ Reserve
Linux and Mac OS X: Frackin’ Reserve
Web Edition: Frackin’ Reserve

You can download the entire package of all device software here (excludes the web version):

ALL PLATFORMS: Frackin’ Reserve

Just extract the file, go into the platform folder, and choose what you are looking for, either the program that you can run, or the source code.

Articles:

Part 1 – The Mechanics of Fractional Reserve Banking
Part 2 – What is Money?
Part 3 – “How” Fractional Reserve Banking Creates Money and “Why” it is Fraudulent
Part 4 – Run on the Banks? Or Run on the People?
Part 5 – Compound Interest as Invisible Slavery
Part 6 – Summary & Additional Resources

Please remember to rate Frackin’ Reserve and pass it on to friends and family. When enough people discover just how evil fractional reserve banking is, together we can END THE FED and end the control of the money supply by private banksters.

Cheers,

Ryan

Usury, once in control, will wreck any nation.

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Posted by Cynic | Posted in Awake, Canada, Money, Philosophy, Politics | Posted on 17-08-2012

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A brilliant quote from William Lyon Mackenzie King, the 10th Prime Minister of Canada, and the longest serving Prime Minister. Click for a larger version.

Once a nation parts with the control of its currency and credit, it matters not who makes the nations laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile.

Once a nation parts with the control of its currency and credit, it matters not who makes the nations laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile.

Once a nation parts with the control of its currency and credit, it matters not who makes the nations laws. Usury, once in control, will wreck any nation. Until the control of the issue of currency and credit is restored to government and recognized as its most sacred responsibility, all talk of the sovereignty of parliament and of democracy is idle and futile.
– William Lyon Mackenzie King

This goes right along with the Frackin’ Reserve software and series of articles that I wrote.

Feel free to pass this on, along with the software too. There is a Windows only version, a web version, and a Linux/OS X version as well.

The more we help people understand what is really going on in the world, the sooner we can depose the globalists and banksters.

Cheers,

Ryan

Frackin’ Reserve! for Linux and Mac OS X

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Posted by Cynic | Posted in Awake, Banking, C#, Money, Politics, Software | Posted on 27-07-2012

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The first version of Frackin’ Reserve! was only for Windows, and the second version was a web version, but suffered from some typical web limitations. This version is cross platform for Windows, Linux, and Mac OS X. It requires Mono, which is a free download that you can get here.

Frackin’ Reserve! is a fractional reserve banking and compound interest simulator to help explain the fraudulent nature of the monetary system. A 6-part series that explains the fraud can be found here.

As with the previous versions, you can download the complete source code here:

https://github.com/RenegadeMinds/Frackin-Reserve

It’s not all perfectly clean as much of it is directly from the first Windows version where the programming style is more linear so that non-programmers can easily follow along and read the tutorial comments.

You can also download a stand-alone version here. Depending on your computer setup, you may need to open a terminal and run it with the following command:

mono FrackinReserve.exe

The program will then run natively. (GTK# does an excellent job with the native platform GUI look and feel.)

On Mac OS X, you can download and extract the program, then open a terminal and run it like this:

And it looks like this:

Similarly, on Linux (Ubuntu):

Which looks like:

I have no setup packages or installers for Linux or OS X yet, and don’t know when I’ll have time for them.

Cheers,

Ryan

Frackin’ Reserve – Summary & Additional Resources (6/6)

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Posted by Cynic | Posted in Awake, Banking, Logic, Philosophy, Software | Posted on 28-05-2012

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This series of articles on fractional reserve banking started with an introduction to the mechanics of fractional reserve banking. The important points were:

  • The simple nature of the mathematics and the factors involved
  • The iterative nature of the process as a continuing cycle
  • The process has mathematical limits, except in Canada, Australia, New Zealand, and Sweden
  • The limits are drastically affected by the reserve requirement

We then looked at one perspective on the difference between money and wealth, and defined money as an instrument to facilitate trade and commerce.

Part 3 accelerated by explaining the exact mechanism by which fractional reserve banking works, and exposed it for the fraud that it is. It illustrated that by taking advantage of float time, in the same way as check kiting, fractional reserve banking is a temporal pyramid scheme.

Read the rest of this entry »

Frackin’ Reserve – Compound Interest as Invisible Slavery (5/6)

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Posted by Cynic | Posted in Awake, Banking, Logic, Philosophy, Poverty, Software | Posted on 28-05-2012

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But if you want to continue to be slaves of the banks and pay the cost of your own slavery, then let bankers continue to create money and control credit. — Josiah Stamp

In Part 1 we looked at the mechanics of fractional reserve banking. In Part 2, we looked at money vs. wealth. Part 3 looked at how and why fractional reserve banking is fraudulent, and illustrated how it is structured like a pyramid scheme. Part 4 looked at 2 basic ways in which the system falls apart, either through a run on the banks, or the banks forcing depressions on the people and then stealing their wealth. Here in Part 5, we look at compound interest and how it is an invisible form of slavery.

Compound Interest Mechanics

In addition to simulating fractional reserve banking, the Frackin’ Reserve program also illustrates simple and compound interest. Simple interest is calculated by setting the interest periods to 1, and the compounded method to "Annually". Setting "Compounded" to any other option shows compounded interest, the formula for which is:

Amount = Principal × ( 1 + ( Rate ÷ Periods ) ) ^ ( Term × Periods )

Where:

Amount = the final amount to calculate
Principal = the initial, borrowed principal

Rate = the interest rate as a decimal (not a percentage)
Periods = the number of times to calculate the compounded interest in for the term (e.g. 12 for a term of 1 year when compounding monthly, or 365 if compounding daily)
Term = the total length of time for the loan in years

Interest is an Invention of Satan — Thomas Edison

While Thomas Edison may have pioneered douchebaggery, he was at least smart enough to know just how sinister interest was. And this is another predatory hallmark of fractional reserve banking.

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Frackin’ Reserve – Run on the Banks? Or Run on the People? (4/6)

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Posted by Cynic | Posted in Awake, Banking, Logic, Philosophy, Poverty, Software | Posted on 28-05-2012

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Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess. — Irving Fisher

In the last part we saw how float time was fradulently used in fractional reserve banking by banksters the same way that check kiters used to use float time, and we also looked at how float time builds a temporal pyramid structure analogous to a traditional pyramid scheme. If you haven’t already, make certain to read the previous sections as they are built upon here.

Part 4 examines how a run on the bank works, and how banks "run on the people" to cause recessions and depressions.

Remember back to the pyramid in float time and the mainspring metaphor. In the mainspring metaphor, fractional reserve banking gains energy through interations the same way that a mainspring gains energy when wound. Conversely, the unwinding of a mainspring releases that energy, and the same holds for fractional reserve banking; when fractional reserve works in "reverse", it loses energy. That can be visualized on our temporal pyramid:

Fractional reserve banking gaining and losing energy in the temporal pyramid

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Frackin’ Reserve – “How” Fractional Reserve Banking Creates Money and “Why” it is Fraudulent (3/6)

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Posted by Cynic | Posted in Awake, Banking, Logic, Money, Philosophy, Poverty, Software | Posted on 28-05-2012

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When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it. — Frederic Bastiat

In Part 1 we looked at the mechanics of fractional reserve banking and the mathematics behind it. We also saw how absurd it could be when trying to divide by zero. Then in part 2 we looked at one perspective of "what is money" and defined it in terms of its relationship to wealth.

It is now time to turn out attention to discovering "how" fractional reserve banking creates money. Once we understand the "how", we can answer the question, "Why is fractional reserve banking fraudulent?"

If you recall the basic fractional reserve banking cycle, it went like this:

The basic fractional reserve banking cycle

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Frackin’ Reserve – What is Money? (2/6)

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Posted by Cynic | Posted in Awake, Banking, Logic, Money, Philosophy, Software | Posted on 28-05-2012

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We have a system called, "money", which is based on money that has never, does not, and will never exist… We have become so divorced from the world that we live in, that most people never ask the simple question, "What is money?" — David Icke

For the purpose of discussing fractional reserve banking, the following is roughly how we need to answer the question, "what is money?" There are plenty of perspectives for a more general answer, but for fractional reserve, we need to choose an appropriate way to view money. The reasons for this view will become clear in parts 3, 4 and 5.

Money vs. Wealth

Money is an artificial thing. It doesn’t really exist in reality. You can’t go out and find "money" anywhere in the physical, non-artificial world. That is to say, money doesn’t grow on trees. It comes out of the mind and is a purely artificial concept. It’s only legitimate purpose is to facilitate trade and commerce, or in the words of Aristotle, "Money was intended to be used in exchange."

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Frackin’ Reserve – The Mechanics of Fractional Reserve Banking (1/6)

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Posted by Cynic | Posted in Awake, Banking, Logic, Money, Software | Posted on 28-05-2012

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The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks. — Lord Acton

I published Frackin’ Reserve, a fractional reserve banking simulator (desktop version here, web version here), with the promise to follow-up with another article explaining it. After hitting 5,000 words, I realized that I needed to do a series.

Part 1 explains the basic mechanics of fractional reserve banking in very simple terms with examples. Part 2 answers "What is Money?" for the purposes of the discussion. Part 3 illustrates how and why fractional reserve banking is fraudulent. Part 4 shows how the system can fall apart, and 2 attacks that the banksters can use to steal wealth from people. Part 5 examines usury and compound interest as forms of invisible slavery. Part 6 is a quick summary with links to other resources. Each part builds on the previous, so it is strongly recommended to read through in order. Even if you have a solid understanding of fractional reserve banking, there are a few new twists that I add to the traditional understanding of it that could be missed.

The 3 Factors in Fractional Reserve Banking

While fractional reserve banking mechanics are surprisingly simple, the implications of the system are not. Mechanically, fractional reserve banking depends on 3 factors:

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