From: Travis
Subject: Cagle Newsletter: Where The Money Isn't
Date: Saturday, February 21, 2009,

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*Where The Money
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Willie Sutton is wrongly believed to have said he robbed banks because
"that's where the money is." He never said that, and anybody who says it now
would also be wrong.
A bank's principal function is twofold -- to be a depository for their
customers' money and to make profits by lending money and charging interest
on the loans.
Thanks to a process known as fractional banking, some of the money they lend
is the money their customers deposit with them plus a multiple provided by
the Federal Reserve. Simply put, the Fed allows banks to lend more money
than they have on deposit.
This is inflationary in that it adds to the amount of money in circulation
by creating money out of thin air. The more money in circulation, the less
each dollar is worth.
With the federal government now squandering trillions of dollars it does not
have -- and must borrow -- in an alleged attempt to stimulate our economy,
the money must come from somewhere. We either sell bonds to other nations,
or allow the Fed to create more dollars out of thin air, thus slashing the
worth of the dollars in our pockets.
Needless to say, this federal Ponzi scheme has utterly distorted the normal
process and opened the door to rampant inflation of the currency.
That distortion has created an Alice-in-Wonderland scenario where... *READ
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*
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