Negative Yield Curves to Infinity 

DYI:

Of course it is fraud, or better said, counterfeiting. Fractional reserve banking is a juggling act (check kiting) with alternating pendulum swings to manipulate inflation and deflation to manipulate the price of capital always to the disadvantage of the parties that are not part of the prime mover crowd. If property entrusted to you and do what banks do with money, you would prosecuted and go to jail.  Don't believe me? I know baby-sitting co-ops and other such exchanges which introduced their own chips or tokens, and faced prosecution.

The proof is in the pudding. CEO compensation has sky rocketed since the economy was financialized, turning executives into a type of banker, balance sheet jockeys and price share manipulators. Just look at GE or GM. Average compensation of bankers and executives cannot possibly by explained as productive labor -- they are multiples of the gains realized by criminal syndicates and racketeering schemes. Why do you think all these too big to fail banks have all paid billions to buy off felony money laundering, market rigging, and fraud charges? Because the illegal activities are in fact of exactly the same nature as the legalized activity, they cannot really be distinguished.

To restore banking minor amounts of regulation would be required.  However in today’s environment gargantuan levels of sustained political energy is needed to rein in bankers.  Banks employing capital is simply this; equity that is acquired to form the bank 80% is eligible to be lent; depositor’s capital only 50% is authorized for lending.  Monies by owners [in whatever form] if found to have been borrowed from other sources for bank equity or deposit would be deemed illegal and face criminal prosecution.  That’s it!

No longer would the economy be on its roller coaster path.  Recessions would still appear but to create another 2009 or Great Depression would simply not befall our great nation.

Individuals and families wishing to borrow money will go back to the time tested five C’s of banking; character, capacity, capital, conditions and collateral.  In the regulatory environment stated previously these five C’s would all be addressed before dollars [or possibly gold or silver] is lent.

DYI