Fractionalized Banking

[GIVINGisGREAT]

Good Afternoon Dinar Friends,

I'm doing a class paper on Dinar and wanted to try to explain Fractionalized Banking...I know I have seen articles about it here but when I put that term in the SEARCH Box, it doesn't really take me to a section specialized for that term. Does anyone out there have access that can send me to a specific spot for that info? (Google doesn't help much either)

Thank You,

Brian

[BigFrankD]

http://en.m.wikipedia.org/wiki/Fractional_reserve_banking

[jmw]

Try googleing "fractional reserve banking"

http://www.investopedia.com/terms/f/fractionalreservebanking.asp#axzz1qFnAgN9d

Also, FWIW...fractional reserve banking doesn't apply to covering the dinar...it is only a requirement for commercial banks...not central banks.

[SgtFuryUSCZ]

***///BSB***///

FRACTIONALIZED BANKING... by 'Ol Sarge:

When enough bombs go off in Iraq to split the CBI wide open and a RV falls out.

['ol sarge is back! -- ]

[The Machine]

***///BSB***///

FRACTIONALIZED BANKING... by 'Ol Sarge:

When enough bombs go off in Iraq to split the CBI wide open and a RV falls out.

['ol sarge is back! -- ]

ha ha ha I actually sprayed mt tea all over my screen reading that lol ...... Love it

[GIVINGisGREAT]

It seems to me that I have seen articles here that explained how the formula works for the oil/Dinar...How they spend approximately $4 to produce a barrel of oil, and how when we cash in Dinar it is held in Banks and the United States get credit towards oil...I probably butchered that explanation but I'm sure I have seen something to that effect.

Thanks Again.

[keepmwlknfny]

It seems to me that I have seen articles here that explained how the formula works for the oil/Dinar...How they spend approximately $4 to produce a barrel of oil, and how when we cash in Dinar it is held in Banks and the United States get credit towards oil...I probably butchered that explanation but I'm sure I have seen something to that effect.

Thanks Again.

I wouldnt put too much faith in that scenario because the fact is that it doesnt explain how the dinar would be backed at a higher value....a lot of people try to say that with fractional banking, Iraq can cover almost any amount of a RV because you dont have to have it all there. But it doesnt apply to central banks and backing the value of their currency.....its used by commercial banks for loans and financing....

[MrFnHappy]

I wouldnt put too much faith in that scenario because the fact is that it doesnt explain how the dinar would be backed at a higher value....a lot of people try to say that with fractional banking, Iraq can cover almost any amount of a RV because you dont have to have it all there. But it doesnt apply to central banks and backing the value of their currency.....its used by commercial banks for loans and financing....

Correct. Fractional banking is why Iraq's M2 is more than double the physical cash in circulation.

BTW, how's the family?