Silver as an investment

What is Fractional Reserve Banking?

An excellent definition is over at wikipedia but if you want a simplified definition of fractional reserve banking here goes:

For every dollar deposited in a bank, that bank is legally allowed to lend $9.

better even still, a cartoon:

buy silver and own something of real value


2 Trackbacks

  • By Federal Reserve Facts | silveristhenew on November 22, 2010 at 2:12 pm

    […] silveristhenew Silver as an investment Skip to content HomeAboutWhere to buy Silver ← What is Fractional Reserve Banking? […]

  • By New 30-year highs for Silver | silveristhenew on December 30, 2010 at 8:01 pm

    […] now circulates in other banks. With each bank deposit, that same money creates more money. See my post on fractional reserve banking for more info on that. What does this mean for silver? Silver, as a […]

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