Fractional Reserve Banking.

According to Investopedia, fractional reserve banking is:

A banking system in which only a fraction of bank deposits are backed by actual cash-on-hand and are available for withdrawal. This is done to expand the economy by freeing up capital that can be loaned out to other parties. Most countries operate under this type of system.

FRB (fractional reserve banking) is an important topic and has been heavily criticised:

1. It amounts to a form of fraud, embezzlement or legalised counterfeiting. (Rothbard)
2. It is legalised counterfeiting. (Grip of Death)
3. It causes unsustainable bubbles in asset and capital markets. (Rockwell)

For more details see here...

There is a detailed article about it here

In fact according to Positive Money (I quote)

'Fractional reserve is in check mate. It's stuck between a rock and a hard place: either it involves fraud or it needs a taxpayer funded subsidy...'

This youtube video explains it



Now you're probably wondering why I am posting about FRB.

Well the reason is this.

Many years ago I looked at a painting, thought it quite good, and moved on. Later someone told me who had painted it, when and why.

This gave the painting a new meaning.

There's a play coming to Brixton soon, called 'Wonder' in which they discuss FRB.

Here's a quick glance at two of the characters:

Key details are:

Three plays: Wonder, Call on Me and Circles. (There's a poster to the right of this blogpost that gives some details)

All tickets: £5 (of which 50p goes to The MS Society)


7.30pm on Tues 20^th, Wed 21^st and Thurs 22^nd November 2012.

At The Dogstar, 389 Coldharbour Lane, London, SW9 8LQ.
(Nearest tube: Brixton).

Produced by Almost Random Theatre.