Factual Reserve Banking is fraud


Murry Rothbard:

" No administrator is needed to prevent nonfraudulent sales; if a man simply sells what he calls “bread,” it must meet the common definition of bread held by consumers, and not some arbitrary
specification. However, if he specifies the composition on the loaf, he is liable for prosecution if he is lying. It must be emphasized that the crime is not lying per se , which is a moral problem not under the province of a free-market defence agency, but breaching a contract –taking someone else’s property under false pretences and therefore being guilty of fraud."

Michael Shedlock:

“Finally, and as I have pointed out before, lending of checking accounts is outright fraud. Checking accounts are supposed to be money available on-demand, but since Greenspan authorized Sweeps in 1994, almost none of it is.”

Jamie Walton, from the AMI, wrote the following review:[696]

“Brown’s plan to takeover (rescue?) the big banks to continue a “fraud” within the safety of government is totally wrong. Placing the “fraud” in government doesn’t make it right, but might make it harder to stop. Does Brown realize that her statements and conclusions are inconsistent, and that what she proposes leads to exactly the same things that she’s claiming to be opposed to?”

" Experience shows that if the issue of money is unduly affected by commercial incentives, then, over time, “commercial loans” (i.e., debt) will dominate over more direct methods of issue. So we’d be kept in exactly the same position we’re in now: within a totally unnecessary, ever-growing and impossible-to-pay debt trap."

" It seems incredible that Brown is now advocating what she’s described throughout most of the book as fraud, counterfeiting and Ponzi, pyramid or ‘smoke-and-mirrors’ schemes. Why? Perhaps the answer lies in Brown’s apparent confusion and/or fundamental misunderstandings about the nature of money and the role of government in society, and about monetary history and monetary reform."


There is a lot of politics regarding Factual Reserve Banking, however when you put money into a bank, who can lend that money out but for some reason, your money is still available to be taken out and not locked.

The whole government regulatory banking system is fraud or even a Ponzi scheme to the extreme,

Do you disagree?