Fractional Reserve Banking System

The fractional reserve system is a system who is supposed to control USA inflation, but each day it is creating a lot of inflation who affects society because prices become higher so the gap between poor and rich is getting bigger each day. The wealth gap is described in society by Zeigeist Addendum “In a world were 1% of the population owns 40% of the planet`s wealth, in a world were 34,000 children die every single day of poverty and preventable diseases and were 50% of the population lives with 2 dollars a day” (Zeigeist Addendum min 5:51). This means how the gap in society is growing each day because of inflation, who is produced by USA`s monetary system, were they create a lot of money each day. People are dying each day from hunger, while the rich is buying a lot of unimportant things, and the monetary system is putting each day more and more money in circulation, which only add price to basic things like food and housing. The monetary system is also a system that depth`s USA with the Federal Reserve using “bonds”.

The federal Reserve works with USA by trading bonds for money paper, who are instruments of depth. According to Zeigeist Addendum “The money was created out of depth” (Zeigeist Addendum min 9:16). This means how the USA makes money out of depth by giving the bonds to the Federal Reserve, who is something used to assure depth. USA is entering each time more and more in depth that is a problem because they can only pay with the money who is in circulation so it is very hard for the USA to pay something that is produced out of depth. In conclusion the monetary system is a system who affects the USA if it is not welled controlled.

Citation:

ZEITGEIST: ADDENDUM | 2008 (HD). Dir. Peter Joshep. ZEITGEIST: ADDENDUM | 2008 (HD). YOUTUBE, 28 Dec. 2008. Web. 4 Apr. 2014.