Tonite's video is up at foxbusiness.com

[Crickett]

..in several parts..
This shd be part 1
http://www.foxbusiness.com/video/index.html?referralObject=b98a7d06-220a-428f-9ae0-35d990642ad3

If not...go there and do search for news ron paul and they come up if u scroll down..fantastic

[TER]

first

[TER]

bump

[Jeremy]

Ron Paul right again


(how many times do you hear this)

[devil21]

Thats March 13, not May 13. Old video.

[kombayn]

I really dislike banks. I can't imagine the dollar crashing, it'll send parts of America into chaos.

[V4Vendetta]

part 2 isn't showing up... so far a good video though

[TER]

as someone who knows squat about economics, most of it is above my head. How do you well-knowledged econobots think about what RP just said.

[V4Vendetta]

I think he was right on the money, The Fractional Reserve Banking system will be the death of America as we know it.

It is starting

[tonyr1988]

Thats March 13, not May 13. Old video.

Very true - old video, or a typo on the date? It's the show that everyone said it was on, and it seems relevant.

Can we get confirmation from someone who watched it live?

[V4Vendetta]

Thats March 13, not May 13. Old video.

oh yeah, lol, should have paid more attention

[Crickett]

Well it is the one everyone said, so I thought it was it, and it seemed to be. Both parts are there.
You have to type in his name and it comes up...o well thought it was the one

[TER]

Well it is the one everyone said, so I thought it was it, and it seemed to be. Both parts are there.
You have to type in his name and it comes up...o well thought it was the one

It's alright. We forgive you. Now, go find the real one!

[Yom]

Whoops, I voted 5 of 5 before I realized it was wrong.

[Joseph Hart]

Ill youtube it soon.

[haaaylee]

that is from march but holy shit --- he said the chickens have come home to roost.

was this before the wright mess?

[Knightskye]

Agh, you bastard, that's March 13th. Change the thread's title.

They're talking about the Bear Sterns bailout, which happened several months ago.

[RonPaulVolunteer]

I saw this long time ago

[devil21]

Real one, as posted by Mrchubbs in another thread:

http://www.youtube.com/watch?v=txhabgZF_gE

[spudea]

I still don't think david gets it. He assumes that all our technology wouldn't exist today without the easy credit of fractional banking. WRONG! If our banks had 100% reserves, they wouldn't give credit to bogus fraud businesses, the easy credit capital would be tremendously competed for and it would then be pulled behind the very best ideas.

[DriftWood]

I think he was right on the money, The Fractional Reserve Banking system will be the death of America as we know it.

It is starting

Fractional reserve banking is one issue where I think RP and the Rothbard fans have got it completely wrong. Even without the FED, in a completely free market system, fractional reserve banking would still exist because it is useful.

I think lots of this stem from confusion about what banks do, and what money is.

Banks are not in the business of storing peoples money in vaults for safe keeping. If that was their business then they could not lend out any money at all. If people want to keep their money in safes, that is what they should do.

Banks are in the business of getting lenders and borrowers together. All money that is deposited into banks are lent out. Thats their whole purpose. The lenders will get a payed a interest fee for lending out their money. If the lenders lend out their money to bad borrowers they might not get back their money. There is no profit without risk. The interest rate is the price the lender charges for lending out his money. The more risky the borrower is, the higher the price the lender will demand to loan out his money.

When it comes to money. There is the confusion that credit is money, and that banks create money. Its not, and they dont. When you put money into the bank that money gets lent out to someone else. What you are left with is credit. Credit is not money. Credit is just a promise to pay you back the money later. Its a contract that is denominated in money. Sometimes this promise is broken, if the borrower is not able to pay you back. Say you lend out money to a baker (thru the bank). The baker spends the money on opening up a shop, bakes lots of cookies but it turns out noone likes them. The money is gone, and he will not be able to pay you back. You will not be able to exchange the credit for money. But imagine that the cookies where a success. The baker would be able to pay you back in full, plus pay you a nice profit for doing him the favor of lending him money. In this case you can exchange the credit for money. Both you the lender and, the borrower have profited from your relationship. Society as a whole has grown wealthier because it has gained cookies and a baking shop, and you helped it happen thru fractional reserve banking.

So in the end.. 100% reserve banking does not make any sense. Such a thing is not a bank, its a warehouse.

A bank can not create money, it can just create credit. Credit is just the contract that happens when lenders loan out money to borrowers. Banks are not the only ones that can create credit, anyone can do that. When you loan out money to your friend, credit is created. Credit is a good thing. Imagine a world where noone loaned out any money, where everyone stored their money under the mattress or in vaults. In such a world the only way to pay for a house would be to pay for it in cash. That would take a lifetime, and by the time you had the cash to buy the house you would already be to old to have much use for it.

Cheers