[GJM] Possible Project for Collecting Info on "Fractional Reserve Banking" from Respected Academic Sources.

[robert searle]

Dear All,

      As most of us know there are quite a few
references (notably quotes from certain high ranking
persons of influence, and power)to how banks make
money but virtually little, or nothing from academic
type sources. 

Fortunately, I live in Langley which is a part of
Slough, in Berkshire, UK. In the latter town there is
an excellent library with an extraordinary stock of
academic tomes for undergraduates, and graduates.
These are largely upto date works for would be
economists, accountants, business people, et cetera.


Naturally enough, references, and relevant data
concerning "fractional reserve banking" "credit
creation"  the "multiplier", "money" and the such 
exist. I may well follow them all up, and give the
sources onsite here over a period of time if I have
the energy, and/or inclination plus page nos (numbers
ofcourse). 

I may even send for private photocopies of the data
concerned to someone like Rodney Shakespeare, and
possibly others. From what I can so far gather it does
indeed appear that banks do follow the process of
"fractional reserve banking" but a list of respected
academic references to support such a claim
adds greater credibility. This is especially true for
a doubting public new to interest free monetary
reform. 

I know the above notion is probably nothing new but it
could be "resurrected" with greater force. As Donald
Martin said at the meeting in London on October 10th
those involved in how money was created always tended
to be "secretive." The answer why is clear enough....

Anyway, one large academic publication entitled
Principles of Economics (McGraw-Hill,2006)by authors
Moore McDowell, Rodney Thom, Robert Frank....and Ben
Bernanke (!!)gives explicit info on credit creation
(page 652....). 

In another tome entitled Economics by Lipsey, and
Chrystal (Oxford 2004) there is on page 485 the
following revealing claim that among other things that
currency circulation is determined entirely by the
demands of the economy, and not by any outside policy
maker!! The so-called "competative model of banking"
appears to be of two possible kinds, and from what I
can make out so far appears rightly, or wrongly to be
based on the process of "fractional reserve banking". 

The big, big problem with much financial information
ofcourse is its sheer inherent complexity. I remember
buying a second-hand tome dealing  with financial
engineering, and I think I would have found a
scholarly book on Quantum Physics alot easier to
understand by a long shot!!! The language was utterly
inpenetrable...quite unbelievable.....

Robert Searle



PS. Much to my amazement it appears that Slough
library has a stock of economic tomes kept from public
view, but is accessible with special permission. 


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