How Modern Banking Works

This post is meant to be educational so that everybody knows how our monetary system works. Knowing how the system works is the first step to identifying the problems and considering solutions.

How modern Fractional Banking works:

line 1 Bank Starting Capital………………….1,200

line 2 Reserve for Bank working capital……………………………………. ..200

line 3 Private Loans……….1000…….1000……..1000…….. ..1000