Powerful editorial at www.gold-eagle.com explaining very simply how the fractional reserve banking system absolutely depends on the confidence the depositors, and how Y2K may deal it a wild card in the form of bank runs.

Link

-- Jack (jsprat@eld.net), July 29, 1999

Answers

You know, whenever I read articles like this it makes me wonder how the dang system keeps going. But they say all Ponzi schemes must fail sooner or later.

Heres hoping all the good people at this forum will be able to watch it without the fear, even terror, that will encompass many people when this immoral (IMHO) scheme starts to crack.

-- Jon Johnson (narnia4@usa.net), July 29, 1999.

Thanks Jack, good article, confidence is of utmost importance in holding the whole thing together. Consumer confidence is part of the overall picture and it took a bigger dive recently than the pundits had predicted. If it continues to go south next month at an accelerated rate there's trouble ahead.

Ray

-- Ray (ray@totacc.com), July 29, 1999.

Consumer confidence obeys the law of economic gravity.

-- Randolph (dinosaur@williams-net.com), July 29, 1999.

"Mr Exter is now in his nineties, and I predict that if he lives another six months, circumstances will prove him to have been a prophet, because the "belief (of the citizens of the world) in the trustworthiness of" the banking game is about to vaporize."

He must have been reading the "Bible". I've been saying the same, based on the Bible, for years and people just think I'm nuts, which I am, but that's another story.

Babylon is doomed, doomed, doomed. "Weep and howl you rich men! You've withheld the pay of the laborer to long..." What do yo mean withheld? Withholding Tax? Duh Dude!

aka Mark Hillyard

-- freeman (freeman@cali.com), July 29, 1999.

Not gonna preach, but did you know that in the Bible it is illegal to "withhold" the wages of a laborer?

-- freeman (freeman@cali.com), July 29, 1999.

Right on Freeman, they have NO right to WITHOLD ***MY*** money, sooooooo, do you believe there will be an IRS next year, a banking system???

If so, do the logical thing, don't LET them withold your money and cash out ASAP...

-- Andy (2000EOD@prodigy.net), July 30, 1999.

Throughout history, EVERY funny (fiat) money scheme by governments has failed, ending in economic and political chaos.

The fact that the present worldwide scheme (including the U.S. and Britain) has lasted so long merely indicates the cleverness of our rulers and the stupidity of the sheeple.

The bigger the bubble, the bigger the pop.

-- A (A@AisA.com), July 30, 1999.