The revolution has already begun... and "a $million" ain't going to do anything"... when 50 Million people rise up and complain loudly, THEN something will be done. The country will not be saved until the people in power want it to be saved... and that's not the case now. We had the chance last November to make a dent. Congressional dis-approval was 86%, but we naive, stupid, brain-dead American citizens sent 95% of incumbents back to Washington. Not enough of us "get it" yet... I doubt we ever will.... at least not in time.
................................................................................ Of course the next step in the US is going to be an ADD ON VAT TAX.... No ifs...ands ....or buts.... This is the next inevitable step.... ................................................................................. And what will happen is that the dollar will decline to a level such that competition versus other currencies will allow some business to make headway.... ........................................................... The path of least resistance.... ......................................................... What would be interesting is to in order to get VAT passed....the govt. would eliminate all other taxes in 5 years....etc... ........................................................ Another take would be a 10% flat tax....and some form of VAT.... There are better ways to move forward....for sure....
Plenty of countries are in worse shape then us and they haven't "collapsed" from Argentina to Cuba to The UK when people say collapse it Implies anarchy, riots, people starving in the streets never underestimate the power of hunger and need for shelter for people to accept any form of totaalitarian regime as long as they get food and shelter. And even then they will put up with no food and shelter as long as they keep their life. So anyone expecting people to "wake up" don't hold your breath.
In Canada, banks have a required reserve ratio, which limits their ability to create unlimited amounts of credit. Most banks here even keep an amount ABOVE the required reserve ratio. Is a required reserve ratio necessary for American banks as well?
But is he making any money. I'm here to make money. The Market Ticker is planying bad seed in your brain. Just be ready to bail, and drag your sack of money off to count.
Yes banks here are required to keep cash on hand, know as a reserve ratio. They can't loan out all their deposits because they need cash for customer withdrawals. This is true of all fractional reserve banking systems. The fractional reserve banking system is a scam and a fraud. It works great for a while and helps create economic growth and prosperity. However after a certain period it invariably results a catastrophic debt crisis. This is what the world is about to find out.
Only if the borrowers can't repay their loans though...The fractional reserve banking system is fine as long as the banks only loan money to those who will repay...American banks have not followed this principle. Others will be fine.