An autopsy on the worldwide monetary and financial system
The Book
The Great Credit Contraction
The entire worldwide monetary system, built over hundreds and hundreds of years, is changing. Those who fail to understand the environment, with the applicable monetary science and economic law, and fail to take preemptive protective action may lose fortunes. Some already have.
Fractional-reserve banking is the banking practice in which banks keep only a fraction of their deposits in reserve (as cash and other highly liquid assets) and lend out the remainder while maintaining the simultaneous obligation to redeem all these deposits...
Credit Expansion
By its nature, the practice of fractional reserve banking expands the currency supply beyond what it would otherwise be.
The Bank Run
Problems can arise, however, when a large number of depositors seek withdrawal of their deposits; this can cause a bank run or, when problems are...
The Inevitable Credit Contraction
This misinformation leads investors to misallocate capital.