Fractional Reserve Currency: A Scam, A Pyramid Scheme


Our current ‘fractional reserve’ currency system is DEPENDENT upon more debt in order to grow. It’s a statement that may sound crazy, but it’s true. If there is less debt in the system, the system itself becomes deflationary, and begins to collapse. Sick, isn’t it?

Every single dollar is borrowed into existence, and it’s owed back with interest.


Michael Maloney, CEO of, when speaking about the ‘fractional reserve’ currency system in the short video below, says…

“It’s a scam, it’s a pyramid scheme”

“We pay tax for the privilege to have currency”

“We are going to be experiencing greater changes in this decade than anybody has seen in their lifetimes”

“What your are going to see in this decade is going to be astounding”


While reading comments from others regarding the ‘fractional reserve’ currency system, some say…

If there was a movement to ensure that all 8th graders (or high school seniors – or even college freshmen) truly understood what fractional reserve banking was, or how it operates in the real world, and the toxic consequences of its very practice, many would begin to question almost everything they had been told their entire lives, on the assumption that they were being told the truth.

Fractional reserve banking using inherently worthless fiat currency is the most cunning and destructive ruse that man has ever created.

It is not taught for a reason.

Fractional reserve banking as state doctrine is akin to having a system in place whereby all babies would be born pre-addicted to a potent drug, and then keeping them on that drug for the rest of their lives, withdrawing it or providing it in excess, depending upon what behavior The-Powers-That-Be wanted to induce from the populace.

Fractional reserve banking allows a handful of people to create a broken-willed herd of debt serfs.

…and it is extraordinarily efficient.


Michael Maloney –


While I know that the present currency system “is what it is” and we have to operate within it, for now… it is educational to learn more about how this system of creating currency really works.

We can still individually choose to NOT participate by not taking on debt (or, ‘excessive’ or risky debt). NOT taking on debt will NOT feed the system. However, it may possibly lead toward more individual liberty, freedom, and independence while not becoming a debt serf-slave who is beholden to their financial masters (banksters).

I suggest thinking about ‘opting out’.


  1. Lets say you have amillion dollars and want to invest it. You pick out an investment and plunk down your million dollars. Now lets say you are a bank and the million dollars you have is not yours but belongs to 1000 different investors. The government has published a couple millions laws and rules to control the banks. Some of those laws do indeed insure that the bank abides by it’s fudiciary responsibility but other laws merely hamper the bank in it’s efforts to manage your investment. The mosh pit of laws have created this situation not bankers, not investors but the government. Probably these laws should be sunsetted and a committee of experts should rewrite them paring them down to the essentials. But I cannot agree with the more popular idea that people put foreward that would throw the baby out with the bath water.

    1. I do agree with you that there is an abundance of tangled laws (affecting all aspects of our lives). I also believe that people are fed up with the fact that most ‘lawmakers’ are not adjusting their lawmaking for them (the people), but rather they are adjusting their lawmaking for BigCorp. Yes, your insinuation is correct (throwing the baby out with the bath water), people are looking for others to blame for this mess. Perhaps many of them should blame themselves and their having enabled this present government.

      1. We are BigCorp! If BigCorp goes bankrupt how does that help you. BigCorp is forced into a position of having to lobby government because government is constantly passing laws that hurt BigCorp. If The government succeeds in forcing more companies overseas how does that help you. We are all being duped into believing that business/capitalism is bad and big government is good.

        1. @GWTW, I suppose we are BigCorp in the sense that we are all humans (and we are gov”t in the same sense). Personally, I am skeptical of anything that gets too big – that includes BigCorp, BigBanks, and BigGovernment. I believe that things change the bigger they get. It becomes less personal and more about greed. Yes, sure, it’s about making money and progress, however ‘BIG’ tends to go way overboard in that department.

        2. The problem is you cannot simultaneously be for the constitution, democracy and freedom and still believe you have the right to tell a business it cannot get any bigger. I don’t disagree with monopoly laws but most of the efforts in history to limit a business were the result of behind the scenes manipulations by competitors conspiring with politicians and not some reasonable and fair effort to make things better. If I own a business and I am governed by the same constitution as you how do you get to tell me to stop growing or to sell my company? A very slippery slope.

        3. As you, I also do not disagree with monopoly laws, and I believe a business has the constitutional, democratic, and free right to get bigger, as you say – within the constraints of a monopoly. It is somewhat sad though how the evolution of NAFTA and globalization has destroyed our manufacturing base, but that’s another story… We have reaped the short term rewards of cheap products made and/or assembled overseas, however that spurt of profits has created follow-on bubbles here – which have or are now bursting. It’s all based on too much greed, rather than some ‘healthy’ greed – coupled with a certain amount of bad decisions… Too much of anything is usually a bad thing.

        4. The problem with free trade as it exists is most of the countries cheat and find ways to protect their markets while the U.S. does not.

          We should: 1.Require that every country that trades with us buys from us. A simple rule that if they sell us a billion in goods they buy a billion in goods from us. 2.Declare certain industries to be strategic, such as manufacturing, machining, steel making, heavy equipment, shipping, etc. and require that at least 50% of everything sold in this country that uses these industries be built within the states. 3. Remove income taxes on business. 4.Level the playing field between unions and business, no special laws or treatment for unions.

  2. I think we’re all quite aware now how good the gov. is at distracting the public’s attention, especially when we’re caught up in the throws of buying McMansions and all the new toys a home equity loan can muster. We were lulled to sleep by the Fed and Treasury department’s financial trickery. But there’s proof positive we are waking up and don’t drink that kool-aid like we used to. True, we were negligent by trusting and assuming our gov. to be self aware of the people’s wants and needs, but we were duped. As soon as they became aware the cats were away, those mice(rats) did play. Now it’s time to bait ans set a whole lot of mouse traps!

  3. Chiller; Rat traps, you said it!… @ GWTW, I can’t tell if you teach by paradox, or merely are totally a “Bankster” front. I guess I’ll chalk it up to semantics and see the plus in your post. It’s the example of 1000 investors that throws me. That just sounds so Greenspan, Ponzie Scheme. Do you have it in you to lay out what it is that You stand for. My reading of your posts, consistently views a swing from one stance to it’s opposite on a regular basis. I have to wonder if you are an individual or a program? Sorry if I can’t read between the lines, ( I am trying… ) it just seems you are all over the place in your general posts. ? Just looking for clarity, beta testing the essential nature of the GWTW stance… Only curious… May you survive… Survive-All…

  4. That’s what banks do, they invest money that is not theirs, i.e. it belongs to 1000 or more people who deposit money in the bank with a hope of a return.

    I stand for the constitution, self reliance, honesty, lower taxes and small government.

  5. @ GWTW, Thank you for the clarification… As I said I was not sure that this medium was giving me the bottom line Truths- You wish to present to the clan… I look forward to your positive feeds, in response to posts regarding the forward momentum of the “Survivalist” mentality. As well as your bolstering of posts that are as you say ( In line with the common goals. ) “I stand for the constitution ( C? ), self reliance, honesty, lower taxes and small government.” It’s always great to read the positive comments that aid in the growth of Wisdom… Survive-All…

  6. No doubt… if I were only taught this in school! I’m only now beginning to understand what this scheme means to our country and my existence, what an amazing scam!!!

  7. BOILS DOWN to one thing “THE TRUTH” and none of US know that “TRUTH”

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