The banks and the Bank
Primarily, it needs to be understood that the Bank as a principle and process of domination, has nothing to do with the deposit or loan bank around the street corner, its ancestor and depraved origin. A corruption of which, we can mark the successive steps as so many somersaults, from service to mere nuisance.
First, lend the money that you have
Originally, the money lent by investment and deposit bank to some, correspond to the money deposited by others and the interest rate reimbursed plus the capital –Or, created money supply in addition to the one already in circulation- also correspond to the real wealth creation of a company supported by productive investment.
Afterwards, lend money that you… partly have
But the money effectively present in the bank having no risk to be withdrawn all at the same time by the depositors, the temptation to lend more than the money actually in deposit becomes bigger. Then, come into existence the “multiplier”, or, a fabrication of scriptural money, but always devolved to profitable investement. Being temporarily fictitious money, but becoming real in the end through wealth creation due to this profitable investment. A mechanism of fuite en avant little dangerous under two conditions: one. That the economy finds itself in a stage of unlimited development and growth, like it was the case when this practice was invented during the Renaissance. Two. That a political authority, above the Bank, regulates and limits this practice, in relation with real economical growth and development, and not only with scriptural and speculative.
Lending money that you less and less have
A control and a moderation of the bank loan fuite en avant, incommensurable with the low level of deposit soon required, called “fractional reserve”. A fractional reserve imposed to the bank by the politics, but that, from necessity, considering the balance of power between the politics and the money, will be inclined, with the process of time, to tend towards zero.