Tuesday 4 February 2014

Why a bank using Outsourced Resources Banking won t collapse ???

With Fractional Reserve Banking, the banks can create money without limits ..... Because money is debt .... Printing money has a painful effect on people. Money becomes worthless and hard to find in cash ... Banknotes represent a very small amount of the money supply .... Most of the money supply is debt creating by private banks ..... If banks are not paid , it s bankruptcy and people lost their savings .... It explains the QEs in the West ....

With the concept of Outsourced Resources Banking, Bankruptcy is impossible .... Secondary currencies are created for ad hoc purposes and the banks keep tangible assets to back then or as reserves.

PS . The Facebook stock costs 62 dollars .... The collapse on the stock market  is close ... The true value must be around 20 dollars. ... a big drop

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