Occasionally I encounter people who are highly opinionated but not well-informed about the topic they are highly opinionated about. Such it is with the issue of the Federal Reserve. If one is going to discuss the topic, at a minimum they should understand the concept of Fractional Reserve. Above is the one-minute video that explains it. Here is the text that explains the video:
A one-minute video explanation of fractional reserve banking. As you'll be able to find out, commercial banks and not central banks create most of the money in existence through a mechanism called fractional reserve banking. Fractional reserve banking may seem complicated but understanding the basics isn't all that difficult, as you'll be able to find out.
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