I have created this chart showing the effect of FRB on money. It's the best of my understanding and I am no economist, so anyone who knows more about it and sees a major error in concept or a bad math please let me know.. (I'm terrible at math). Also in the second example the guy could borrow the money, but he still wouldn't suffer the effect of inflation, and the bank would only make revenue of P^5 from the transaction instead of P^42.5 (P^ is the currency symbol. You'll understand when you look at my chart.) That is why banks will never let fractional reserve banking go away as long as they control it, and why Ron Paul says the Federal Reserve is killing us slowly. I think the logic is undeniable. If you understand this and agree, please share it and explain it as much as possible to anyone who doesn't profit off of banking.
JD1stTimer Reviewed by JD1stTimer on . Fractional Reserve Banking I have created this chart showing the effect of FRB on money. It's the best of my understanding and I am no economist, so anyone who knows more about it and sees a major error in concept or a bad math please let me know.. (I'm terrible at math). Also in the second example the guy could borrow the money, but he still wouldn't suffer the effect of inflation, and the bank would only make revenue of P^5 from the transaction instead of P^42.5 (P^ is the currency symbol. You'll understand when Rating: 5